Legal Question in Banking Law in India

In my case the appellant bank filed a OA with properties mortgaged as Schedule C, D and E. Subsequently they further filed a petition to attach further assets as Schedule F and G.They were attached as prayed by the applicant bank, with condition that they matter may decided at the time of final decision on the OA and dues. The preciding officer while passing the final order in the OA wrote as ".....dues to be recovered from the defendants jointly and severally with interest ........ by sale of Schedule "C" to "E" excluding the properties already sold as prayed for in the evidence affidavit of applicant.

Accordingly issue a recovery certificate. let the copy of the order .....".

The recovery officer while proclaiming the sale of properties by auction, has included the Schedule F and G also with out the order of the PO.

Is this permitted or not. If not what course of action I need to take.


Asked on 2/07/15, 11:08 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

08.02.2015

Dear Sir / Madam,

Norm is that the market valuation of the properties mortgaged are substantial to cover the extent of facilities extended to the borrower(s) by the Bank. The Presiding Officer in his judgement permits the lending Bank to sell the unsold properties enlisted in Schedule "C" to "E". The Recovery Officer will have to procure a specific order from the Presiding Officer for auctioning the assets enlisted in Schedule "F" and "G" of the writ petition. Filing an Addendum before the Presiding Officer restraining the Recovery Officer's action of attaching assets enlisted in Schedule "F" and "G" is advisable and recommended.

Regards,

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Answered on 2/07/15, 7:30 pm


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