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Tarachand   08 March 2017

Misuse of sarfaesi act


I have taken one Flat in Thane on Heavy Deposit of Rs. 15 Lacs

After 10 months I received one Notice from one Banker that the owner had taken loan of Rs.74 Lacs and he has not paid loan amount and the account is NPA since last 09 months hence vacate the Flat

I filed RCS in Civil Court and the Banker has been served the papers and proceedinmgs of the case but the Owner has run away and since last 06 months he could not be served papers of the said suit

The Banker did not appeared in Civil suit before Civil Court and because the Owner has not been served the papers, the Civil Court is not granting status quo order

Now New problem arisen :-

Now before 12 days (when we all family members went out for 2-3 days) then some people pasted one Notice on the door of the said Flat

That Notice is issued by Tahasildar and Executive Magistrate

That Notice is issued in the name of the Owner of the Flat my name is not there at all

The Notice means that on 10-03-2017 the Banker, if not cooperated,  shall take forceful possession of the Flat as per order passed in Dec. 2016 by the District Magistrate Thane under SARFAESI Act u/s. 14


But the fact are as under  :-

that Banker know  that the Owner is not staying inside the Flat and that We are staying inside the Flat

that Banker did not appear in Civil Court in spite of papers served to him

But they got Order in name of Owner and when I inquired with them then the Banker told that they will take possession on that day


What should I do ?

Kindly guide


 4 Replies


Matter under Sarfeasi Act,

you need to appeal in DRT not in civil Court ,

Civil Court does not have jurdisiction in this matter. 

I would suggest also start criminal proceeding against owner , stating he took your money and ran away.

Reason - I see this as criminal case because criminal only become invisibile , in civil dispute generally person don't become invisibile and he is found 


This is fraud case.  Even if there is loan on the flat, there is no restirction that he cant give it on rent or lease.  He has given the flat on lease and taken money and now absconded.  There is nothing between the Bank and you.  You should catch hold of the Owner who ran away with your 10 lakhs.  First register police complaint against him in jurisdiction police station.  Then take copy of the FIR and send it to the banker.  If there is eviction notice, go for stay in High Court regarding the same.  But before approaching High Court, file complaint against the owner in jurisdiction police station and then take it from there.


First you have to give complaint in police station, that owner is missing,  then you need to give notice to him regarding the story, if he does not accept, then you have to get paper notification.  Then when all measures are exhausted and he is not responding at all, then you need to approach Debt Recovery Tribunal.  This is the method.  Simply approaching Civil Court, they will take any petitoin you give, finally that petition will be dismissed after 6-8 years. Anyway there is good chance of banker kicking you out even if there is agreement between you and the owner.  Actually he is not owner only, bank is the owner.  Case lummba chalega.  Consult good advocate locally to sort this out.  By the way what is the opinion of your advocate, please let me know.

Zoheb Khatri (Practicing in Mumbai     15 March 2017

This is the case of Fraud,

FIle Police complaint in Area and inform court and Obtain Injuction 

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