Legal Question in Banking Law in India

Sarfaesi Act 2002

Hi, i have bought a property through auction by a PSU bank. Now the owner of the property is occupying the property, so i appr. bank to give proper poss. of the property, they too imme.responded me n they approached CJM court to vaccat n they got an order to vacant the property.Now, the borrower is trying to get stay this CJM Court proceedings.They are going to approach high court or DRT to get stay after this 5th January 2009.The borrower has availed loan facilities from the bank in 2000. his mother stood as guarantor,she mortgaged her property(property was solely owned by her mother in the year 1975 n she died in the year 2007). On 2002 the account declared as NPA for Rs.22 lacs. The bank issued notice u/s13(2) of sarfaesi act n took symbolic possession of the property in 2004 with borrower signature. they started sale proceeding in 2004,2006 & 2008, finally i won the bid in 2008.After the auction they filled a partition suit in civil court n request to stay the sale proceedings,but the court denied n sent the notice to the bank.Sir, is my sale valid? are they get stay? the property is sold only for Rs.7.5 lacs, they liable to pay balance 15 lacs to the bank.i like to known stands, bank says u need not worry! please suggest.


Asked on 12/31/08, 11:22 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Sarfaesi Act 2002

You are asking about what may happen in future which cannot be comprehended at this stage. There is always an element of uncertainty in such transactions.

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Answered on 12/31/08, 5:55 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Sarfaesi Act 2002

Already replied.

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Answered on 1/03/09, 6:24 am


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