Shyam Ji Srivastava (Practising Lawyer) 27 September 2010

sarfaesi Act

Father got loan from a nationalised bank and mortgaged his House. Afetr some time father expired leaving behind him wife and a minor son. Wife approached another Bnak for further loan. another bank takeover the previous loan and wife herself and onbehalf of minor son mortgaged entire house and further submitted affidavit and also signed entire loan document but she could not maintain the acoount hence her account declared NPA and Notice 13(2) of sarfaesi issued and also possession under sec.13(4) obtained. Wife filed a suit in civil court on behalf of minor that mortgage of minor`s share is void as no permission was obtained by the mother. what is remedy available to the Bank?

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Raj Kumar Makkad (Adv P & H High Court Chandigarh) 27 September 2010

Bak has errored while mortgaging the house as it belonged to both mother and her minor son. The suit of the plaintiff is accurate. Bank can continue mortgage only up to the share of the loanee i.e. the mother of that minor.

Uma parameswaran (lawyer) 27 September 2010

Bank can move against mother's property.

M. A. Khan (advocate) 27 September 2010

If wife singned any document or mortgage deed with bank on her behalf and on behalf of child as legal guardian, than civil suit under sarfaesi act is barred.

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N.K.Assumi (Advocate) 28 September 2010

Under sarafesi Act Civil court is barred and appleal against the bank can be filled in Debt Recovery Tribunal and any offence under Sarafesi Act can be entertained by First Class Magistrate or Metropolitian Magistrate.