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raja (owner)     08 May 2017

Sarfaesi sec 13(2) - sub-collector sealed shops - sec13(4) ?

Dear Sir,

I own a shopping complex let out to some shops and other govt organisations. I have availed a loan from a nationalised bank. On 4.3.2017 Sub collector, have closed and sealed two shops in my shopping complex (mortgaged property). My loan accounts became NPA due to non payment of EMI. In this scenario, bank have issued SARFAESI notice u/s 13(2) on 2.4.2017.

My query :

  1. Does bank authorised creditor have legal rights to take symbolic possession of the mortgaged property ?


 1 Replies

rajeev sharma (Advocate Ex senior manager law )     09 May 2017

yes they have. It is thge duty of debtor to hand over physical possession to bank when notice u/s 13(4) is received .If he fails to do so the bank may take symbolic possession of the property and make an application to DM for taking physical possession and deliver that to bank.

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