Legal Question in Securities Law in India

Sale of property under SARFEASI Act by a Bank

A Bank has sold by public auction under SARFEASI Act a property which my client has purchased. The mortgagor has approached DRT after the sale is concluded and sale certificate issued by the Bank. DRT Madurai has admitted the petition and the matter is dragging for the last two months due to boycott of courts by lawyers.

Please advise whether the action of the DRT is correct in admitting the petition inasmuch as the mortgagor has remained dormant during the notice period and thereafter till sale?

What is the option for the purchaser to get the petition dismissed ( The Bank is filing counter and taking steps)


Asked on 2/17/09, 11:19 pm

1 Answer from Attorneys
SHIVA SHANKAR REDDY M/S S&S LAW FIRM

Re: Sale of property under SARFEASI Act by a Bank

Since your client is bonafied purchaser then there is no risk as to right to his property purchased in auction and regarding the court admitting the petition might be based on misleading facts of the mortgagor and in mean time you see that the possession is taken over by your client and do not worry about the case this is certainly not going to harm your clients interest.

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Answered on 2/17/09, 11:28 pm


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