Legal Question in Banking Law in India
Under the SARFAESI Act, can the bank sell the mortgaged property (through private sale) before the property against which the initial loan was taken?
What is the sequence of sale the bank has to follow in terms of Property against which loan was taken; mortgaged property & personal guarantee of the directors?
2 Answers from Attorneys
Bank can at its option proceed against any property which has been mortgaged at its option. There is no order as such prescribed by the SARFAESI Act regarding which property has to be sold first. However a bank cannnot proceed under SARFAESI Act against a property which is not mortgaged.
Under SARFAESI Act the bank will proceed against the mortgaged property first and if there is still some outstanding after realising the proceeds of the mortgaged propert y, the bank will proceed against the company and personal guarantors in the DRT
Related Questions & Answers
-
I have taken land on lease of 20 years. 3 years completed. i have constructed godown... Asked 12/03/09, 9:19 am in India Banking Law
-
What is issuing cheque through an attorney? also, is there Automatic Clearance House... Asked 12/03/09, 5:55 am in India Banking Law
-
Hello Sir, I bought a flat in pune and taken home load from Axis bank Pune, I have... Asked 12/03/09, 4:46 am in India Banking Law
-
I have deposited a check on 26th November it expires on 9th December, does it have... Asked 12/02/09, 12:47 pm in India Banking Law
-
I aken personan loan form 5 different bank and one auto loan. i regularly paid all... Asked 12/02/09, 8:33 am in India Banking Law
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
