Legal Question in Banking Law in India

Sarfaesi act

i took a CC loan in 1999 and in 2001 the loan has been classified as NPA. and the bank filed a case in the honorable civil court in 2003.and the case is going on in the court. and now the bank has initiated its proceedings under SARFAESI Act. is it possible for the bank to start the process under SARFAESI 2002 where as the loan is in 1999 and then there was no such Act. please advise.


Asked on 11/24/08, 11:19 pm

5 Answers from Attorneys
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Sarfaesi act

Yes the Bank can take action

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Answered on 11/26/08, 8:32 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Sarfaesi act

SARFAESI Act is applicable to previous transactions. However, you may take out appropriate appeal proceedings before the DRT against bank's action.

You may also consider approaching the bank for a compromise under 'one time settlement' scheme of RBI if such a scheme is in force these days.

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Answered on 11/25/08, 9:15 am
Pravin Vaidya Independent

Re: Sarfaesi act

Yes in your case the Bank can certainly take action under SARFAESI

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Answered on 11/26/08, 1:21 pm
Homi Maratha N.N. Maratha & Co.-Advocates

Re: Sarfaesi act

Yes the Bank can initiate action on the same

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Answered on 12/23/08, 5:18 am
J. Radhakrishnan independent Practice

Re: Sarfaesi act

It is immaterial when the loan became NPA. There is no bar to take recourse under SARFAESI Act for debts sued in Civil court or DRT. That is the judgment of the Supreme Court that the remedies can co-exist and proceed simultaneously.

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Answered on 11/25/08, 9:26 pm


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