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Syed Nida   20 June 2017

Sarfaesi notice 13(2)

if a notice under sec 13(2) is issued to a borrower and the notices were sent to their respective addresses but without AD but were published in two newspapers, is this enforceable or not what is the remedy for that.


 7 Replies

NATARAJAN IYER (Proprietor)     21 June 2017

Remedy is to never jump into litigation.

As per the postal act, telegraph act etc 'sent by post' is enough.

Publishing in newspapers is a procedural step that can be implemented either before or after symbolic possession.

First remedy is to reply to any notice.

The bank / financial institution has to respond to your reply/notice within one week.

They do all tricks of sending a communication to you just two days before the 60 day period ends.

Till such a time, they lure you with one time settlement etc 

When a collateral is provided to the bank, what one time settlement ???

So be careful of their tricks.


Any legal practitioner would know the term BANKER's MISCHIEF when you refer to sarfaesi.

They try all tactics to make you GO FAST into LITIGATION and fall from the cliff.


Once they have pushed you into litigation, the possession, selling to a property management consultant, your entire debt,...etc

is very easy for the bankers. They are excellent in the art of defaming you and once the newspapers,..etc have your information 

in addition to their notice board etc carrying the same information, getting a loan elsewhere is extremely difficult in INDIA.


The MISCHIEVOUS BANKERS know how to spoil your sleep and peace of mind.

Be Careful.


RBI has categorized will-ful defaulters etc listing certain observations.

Read that and you can see whether you fall under that category.


Hundreds of Advocates can guarantee you that they will get you a stay etc.

But finally remember that it is you who either suffers or remains peaceful. Your advocate has nothing to lose.


Either way if you have been paying regularly, then you might only have a loan account which is a TECHNICAL NPA and NOT a LIVE NPA ( ACTUAL NPA ).

By paying regularly, YOUR INTENTION to repay is proven and that is a huge point in your favour legally.



As soon as you do this, GET THE ' LETTER OF REGULARIZATION ' which should clearly say that your loan account is STANDARD as on date when you have paid the balance amount and got it back to regular.

Now when you decide to move to some other bank, these bankers would start again.

There is a CR ( confidential report ) that is COMPULSORILY to be filled and issued as per the IBA ( Indian Banks Association ) guidelines, by the bank where you have a loan.

In that CR, if your bank manager fills the column asking about account status as STANDARD or NON-STANDARD or SUB-STANDARD, then no bank will give you a loan. This CR is confidential and sent by registered post directly to the new bank where you have applied for a loan.

Some mischievous criminal bankers go to the extent of making a phone call to the other bank and defaming you.

By the time you fight out all these, you are so tired that you feel LIFE IS LOST.

This is where your SOUL STRENGTH comes into picture.


first get the loan account back to regular and standard by paying the difference amount and insist on the letter from the bank as mentioned above.


Many advocates would not tell you these points since they themselves do not know.

Bankers have many tricks up their sleeve that even advocates would have to learn from them.


But if you spend time in a law firm or in the courts, you get to see so many cases and learn a lot.

Speak to retired bankers, retired police officers, retired govt.employees etc and you get a wealth of information which no book can teach you.


Read the MASTER CIRCULARS of RBI and you get to learn a lot.

Advocate Suneel Moudgil (Advocate)     21 June 2017

Great happy ending, what if borrower is not able, not in position to regularize his account?

Mr Iyer, you are defaming advocates that too on a legal site and publically, i request and advise you to think again about your views on advocates.

you have glorify the bankers in such a way that nobody, including Courts of India, is above them.

you have scared the scared queriest that he might loose all hopes and thinking of settling the matter taking money from such money lenders  who lends money at extreme high rate. it is almost impossible for any person to get out of their TRAP.

So, i request as well as advise you to thing before advise anybody.

Syed, Notice is enforceable and you are advised to contact a local lawyer and show him/her the notice and take help and service.



G.L.N. Prasad (Retired employee.)     21 June 2017

When Delhi High Court observed that issuing of summons through Whats app and SMS is enforceable, it is deemed that publication of such advertisement and sending another copy through post, which eventually may return amounts to service.

Vinod shah (legal assistance for victims of system.     21 June 2017

Mr Advocate Suneel there are always many people around in the society to misguide people by just blaming advocates.



dr g balakrishnan (advocate/counsel supreme court)     21 June 2017

You need to question the very Act, tenability and if the Act is tenable basically then the section issue will come - see Sch'IX in the first constitutional amendment went on till 2007 when that schedule IX is set aside by a constitution bench headed by CJI Mr YK Sabharwal in LR Coelho v st of TN (2007) after several years of fight, may be he allowed some to continue but no prospective action of the Sch. IX, that way barred , infact CJI YKS honored CJI Mr K Subba Rao commitment to allow a few 13 ones. But that too can be struck down soon , 'prospective doctrine is applicable in civil issues only not on fundamental rights - fundamental right of citizen is all Acts/statutes out to be decided at courts of law that is Art 14 reading.

so you need so many of you suffering from s/13 of this Act, ought to pool together appoint a powerful legal team to fight out this irrational Act, why irrational , it allows Banks and financial institutions just grant loans without seeing the credibility of repayments of loan - that way you asllow the banks go scot free, that is against rule of law.

NATARAJAN IYER (Proprietor)     21 June 2017

My post here is based on the huge number of cases that I have seen. The moment the 60 day period is over, a huge number of advocates start calling the borrowers saying he can get a stay and they say 100% stay will be obtained. Their marketing skills are way too superb. This is the year 2017 and nobody needs to be scared. Indeed society is scary and that is REALITY. Sarfaesi is known as a financial terrorism tools which in the hands of a monkey banker and his/her mischief, results in irrepairable damage to the GENUINE borrower. From bench clerks to many etc, the nexus with bankers is well known to all of us. If the minimum amount is not paid, which judge grants a stay ? Be practical. In reality, it is not that easy. Even to get a stay with 100% assurance, an advocate charges a bomb. Come on, I have seen enough of them to get fooled by the common man's assumptions about them.
1 Like

rajeev sharma (Advocate Ex senior manager law )     22 June 2017

Astonished ! our legal lumeniries wrote such a long trtise in answer to a very simple question.surprise

Rule 3 Demand Notice under SERFAESI SECURITY INTEREST (En forcement Rules)2002 that bank has to deliver the notice u/s 13(2) by delivering the notice at the place where the borrower generakky resudws or carry out business by speed post or courier including hand delivery . Where the bank has reason to belive tht the borrower is interntionally avoiding the delivery of notice it may got that published in news paper or affix that on the property


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