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MANOJ HARIT (LAWYER)     07 March 2010

SARFAESI

Dear Sir,

After issuance of 13(2) Notice & before commencement of action under 13(4) if a Guarantor dies, will the Bank need to issue fresh Notice u/s 13(2) to the legal heirs?



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 5 Replies

aruntrivedi (lawyer)     07 March 2010

yes. a procedural work requires to bring heirs of deceased on records and then fresh notice to be issued.

1 Like

Uday (Lawyer)     23 March 2010

Dear Sir,

Can you pls provide us some citation which speaks about the discussed point?

1 Like

Devajyoti Barman (Advocate)     23 March 2010

The notice u/s 13(2) of the Act is given to the Borrower only and it has nothing to do with the Guarantor and hence  his death does not necessitate service of such notice to the legal heirs.

1 Like

Uday (Lawyer)     25 March 2010

Though I agree with the views of Mr.Barman, I would like to place my views as follows. If the guarantor has furnished his property as security, then his property becomes the secured property. Under these circumstances, notice to the guaranto has to be necessarily sent and if the guarantor has passed away, then the legal heirs has to be brought into the picture. Pls correct me if I'm wrong.

1 Like

MANOJ HARIT (LAWYER)     26 March 2010

Dear Mr.Uday,

I agree with your views. The Bank must bring the Legal heirs on record & then issue fresh Notice to them. By the way this is an accepted practice at DRTs.


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