Legal Question in Banking Law in India

Dear Sir

I am an member of an co-operative society. My all family members are

Also member in this co-operative bank. I have 2 elder brothers they have

Started the business in 1999.And they have also sanctioned the personal

Loan and O.D.limit From the society on behalf of my father�s surety by

Mortgaged property. Unfortunately they could not get success in the business

And they had faced the big loss in the business and day by day they surrounding

By financial crises and in between they have also cleared the secure load and personal loan.

In 3rd march 2008, bank staff and court staff with police execute in our

Home without any information to seal the property they don�t have give us the

Time and they demand to 1, 70000/- in same day at that time we have sole the

jewellery of my brother�s wife in down prices but we could not get complete

The amount we could arranged only 1,25000/ rupees. And deposit in bank.

Then they have leaved us.

Now problem is we have one more loan is pending with bank it is O.D.limit

1, 00,000/- rupees according my father he has give surety only for only one

lac rupees. and the bank has extend the limit 2,00,000/- (tow lac) without any

Information to my father. Now my brothers have no job and business has also demolished.

so my father has requested to bank for settle this amount. my father can

Finally pay only 2, 50,000/- (two lac fifty thousand) within three months.

But bank directors are not ready to do so. and they have make the amount

aprox.7, 38,000/- (seven lac and thirty eight thousand rupees).and harshening to my

Father and saying that Propriety will be auction any time.

The bank people has stick the notice by court and dad line is 18th sep. 2010

Sir our property is not registered it has only power of attorney.

Please confirm me that the Sarfaesi act 2002 is applicable in this case.

Thanking you


Asked on 8/26/10, 1:50 am

2 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

even though the property is purchased on attorney, still the act would apply.

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Answered on 8/26/10, 3:17 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

The Act will apply to mortgaged property.

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Answered on 8/28/10, 10:27 am


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