sudalaimuthu, (Advocate and Tax Consultant sudalaipearls@rediffmail.com) 17 October 2010

SARFAESI ACT

SIR,

the financial institution initiated the proceedings under 13(2) and 13(4) of the Act. meanwhile the borrower filed an appeal before the DRT challenging the notice issued under section 13(4) of the Act.

but the financial housing loan company had brought the properties of the borrower for auction sale with out any notice to the borrower.meanwhile the borrower moved an stay application before the DRT where we were directed to workout solution under section 13(8) of the Act with the secured creditor. meanwhile sale also confirmed.

now i would like to clarify with our fellow members of the site,

is it possible to the insititution bring the property with out notice. if so what about Rule 9(1) of the Security Interest Rules?

the validity of the sale certificate issued to the purchaser?

wheather the borrower can redeem his property from the purchaser?

Reply Follow

4 Replies

Isaac Gabriel (Advocate) 17 October 2010

It is the prerogative of the purchaser to deal with the property after the sale is confirmed.

J.VINOTH ( ADVOCATE MADRAS HIGH COURT) 18 October 2010

Section 13 of the act itself is clear in this regard that if any proviso is not complied by the secured creditor than the whole proceedings under the act will become void, however at the same time you confrim the notices issued by the secured creditor under section 13(2) & 13(4) i.e the show cause notice and the auction sale notice, apart from these notices which notice you intend to receive ?