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Goapl Garg (CEO)     09 September 2014

Sarfaesi act issue

I am Owner of our residential flat and all the title papers are in my name.My husband used to work for a business house and was Director in several companies of the Owners. My husband has died in an accident suddenly without any will.Neither being a housewife I was privy to any official issues at his office.One of the Owners"s Company in which my Husband was also a Director took Mortgage Loan and Credit Facility from a PSU Bank against several properties belonging to Owners were mortgaged with their own personal guarantee. However as a matter of common trust and practice, my husband also gave his personal guarantee and when requirement arose, our own flat(registered in my personal name) was also mortgaged with my personal guarantee against the said Credit Facility.However there was no bad intention on any side till sudden demise of my husband in a road accident.Now owing to reasons unknown to me the company has defaulted in repayment of loan,interest etc and the Bank has issued Notice to all including me for repayment under section 13(2) of SARFAESI Act with threat of taking possession of my flat which is my only property/dwelling house.The Owners, when approached, earlier used to assure that they are resolving the issues but now they do not meet me, talk to me on phone and has done nothing to resolve the issue with the Bank.I am Housewife with one teenage daughter only and do not have acccess to outside world much and have been told by mutual contacts that the Bank will take possesssion of my flat, make us out,sell it,and then again ask for payment and if not paid then shall seal off my bank account, seize my other assets.

The owners of my Husbands employment has given me a MOU in writing on stamp paper with notary in Dec2012 that they are duty bound to get released my falt and personal liability and they shall do it in 90 days but nothing is done by them.

Please advise me:

the steps the bank may/shall take against my flat and me.

what should I do in this situation?


I am very upset with limited resources .

Please help.


 3 Replies

Rangee (Lawyer)     09 September 2014

Please clarify where are the original documents is it with you or filed before the Bank as part of surety. If the documents are with you then you are safe. either way please contact the Bank and obtain all the details of loan amount and how your husband is liable, then engage a good lawyer file appeal before DRT you will get relief. 


Adv S K Gupta (Advocate High Court)     03 April 2015

pls send a copy of recovery letter issued by bank at below mentioned ID



RAJU O.F., (Advocate)     09 April 2015

If the Sec.13(2) Demand Notice was issued to you against your property 7 months earlier, your chance to legally object such Notice is lost, as it had to be done within 60 days from date of such Notice. You may apprise the bank officials your pitiable position and request them to take action against the properties of other mortgagors, who are still conduct the business. If by enforcing their securities, the loan could be settled, you would not be hurt. But the discretion is with the bank officials. In case, bank issue any Possession Notice to you/against your property, then engage an expert advocate and prefer Securitisation Appeal before jurisdiction Debts Recovery Tribunal, to stop all those actions of the bank.

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