Upgrad LLM

sarfaesi

Management Trainee

Greetings,

Will invocation of section 13(4) tantamounts to calling off of the reconstructuring deal with a company ???? What is the legal nature of section 13(4). Thank you

 
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Management Trainee

Please note that the aformentioned section is under The SARFAESI act. Thank you

 
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Advocate

Once a bank /FI  issued notice under Sec.13(4) under SARFAESI Act, means they do not wait for any settlement or reconstruction of the a/c.  However, if bank decide, they can withdraw the 13(4) notice and can allow reconstruction or OTS of the a/c.

 
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Management Trainee

Thank you very much sir,

So does that mean that settlement or reconstruction agreement which a company had entered into with ARCIL  is cancelled once ARCIL intiates section 13(4) under SARFAESI Act ???

 
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LAWYER

There can not be action u/s 13(4) prior to Notice u/s 13(2). If settlement or reconstruction was in process the issue must be faught on all the fronts. The action of ARCIL must be challenged under various provisions. 

If u r from Maharashtra u may contact ADv. Manish Bohade - 09371505560 OR m.bohade@rediffmail.com

 
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Management Trainee

Thank you sir

 
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Advocate

If notice u/S 13(4) is issued you have to immediately file appeal before DRT within 45 days from the date of possession notice.  Still, you can have compromise settlement with ARCIL. 

 
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