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Suhita Mukherjee   19 July 2022

Power of authorised officer in sarfeasi act

In a case where bank loan is involved against mortgage of non -agricultural property upon declaring the account NPA 13(2) notice was issued. But some objections came as to area of the property mortgaged. As it transpired because taking loan he sold some portion of property to his brother. This by search by another lawyer. Later on possession notice issued and published in Newspaper with original  area of mortgage. But Sale certificate issued for modified area I. e actual area of land and building possesed by borrower. Now case wnt to DRT. DRT wants all Sarfeasi Notices and Sale certificate. My question is whether after getting objection he could modify final Sale certificate as variant from original 13(2) and 13(4) notices. Or Sales will declared faulty? What is the legal position.

Suhita Mukherjee



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 2 Replies

P. Venu (Advocate)     21 July 2022

The party concerned may produce the documents sought by DRT. Anyhow, admittedly, the subsequent purchaser is not an innocent third party and he is bound by the terms of the mortgage with the lending financial institution.

Dr J C Vashista (Advocate)     22 July 2022

Subsequent sale of the mortgaged property is illegal and invalid, if the Bank did not issue NOC. 


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