Indrajeet Shah (Partner) 13 September 2015

Sarfaesi act

Dear Sir, Greetings from Indrajeet Shah.If under Section 13(4 ) of the Sarfaesi Act a possession notice has been issued and if the DRT has ordered a stay on possession of the property under section 17 of the Sarfaesi Act can the Bank still proceed with the possession of the property under section 14 of the Sarfaesi Act ? Kindly reply by mentioning Yes or No at the earliest.If yes how and if No then the person has a relief.Your early reply will save someone's life. Thanking you, Indrajeet Shah

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4 Replies

Subash M R (Advocate) 13 September 2015

No act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of this section(14) shall be called in question in any court or before any authority.

Thanking you,

Indrajeet Shah (Partner) 14 September 2015

Dear Sir, The DRT court has already granted a stay against the possession of property under section 17 of the Sarfaesi Act.The order of the DRT court to pay a certain amount of money to the Bank over a period of time has also been fulfilled. My query is can the Stay be vacated and can the Bank proceed under section 14 of the Sarfaesi Act ?.Kindly reply to this query of mine. Thanking you, Indrajeet Shah

T. Kalaiselvan, Advocate (Advocate) 21 September 2015

Your question itself has an answer in it. You have stated that

""The DRT court has already granted a stay against the possession of property under section 17 of the Sarfaesi Act.The order of the DRT court to pay a certain amount of money to the Bank over a period of time has also been fulfilled. ""

Therefore the bank shall not initiate any process to proceed with the possession or sale of the property now under sarfesi

RAJU O.F., (Advocate) 25 September 2015

Bank cannot proceed under Sec. 14 for physical possession of the property as long as the Stay Order is subsisting. In case after submission of counter and documents and also arguments if DRT came to pass an Order dismissing the SA and vacating the stay, then only bank can proceed any further.