Aditya Panikkar (Apprentice) 09 February 2012

Sarfesai proceedings

Hi,

I am a law student and have certain queries under SARFESAI proceedings

a) Can a tenant be removed under SARFESAI proceedings?

b) Can a bank forcibly evict a borrower/guarantor/tenant without obtaining an order under section 14 of the Act?

c) What is the procedure for sale or "Auction Sale" under SARFESAI proceedings?

d) How many times can the aggrieved party approach the AAIFR / BIFR?

e) When does OTS (one time settlement) come into picture? Does the Bank have the power to revoke OTS.

f) Can the high court intervene in the order that has been passed by the DRAT?

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1 Replies

PAVAN KUMAR AKA (Junior Civil Judge) 09 February 2012

01. Even a tenant can be evicted from the possession of the property while handing over the property to the banker. 02. No bank should get possession of the property of the defaulter without obtaining the permission U/s.14 of the said act. 03. After getting the possession of the property with the permission of the Court, the Banker shall make a public notice of auction and shall sell the property and after deducting/adjusting his debt including incidental expenses, if any remains, shall be credited to the borrowers account. 04. To my knowledge, as many times as the banker filed petition U/s.14 of the act, such many times, he can approach, raising the resjudicata if necessary. 05. The bankers can revoke OTS with the permission of their higher authorities, since they see only for recovery of the debts. 06. Some times, it may when it finds violation of rights under Constitution.