Legal Question in Banking Law in India
my company is banking with a co operative bank in maharastra it is in a consortium with a nationalised bank which is the lead bank with all assets mortaged to consortium under paripassu charge. account is now NPA . co operative bank under Maharastra Co operative socities act (MCS act) proceed for recovery action for only there amount and got a decree in there favour from MCS classifing my company as debtor for there amount .
my question and objection in this case is that when decree is only for there amount and there is no mentioned of the lead banker and there amount . how can they act when asset is charged (mortgage) to both as a consortium. how dose that decree hold value(only speaking of there amount with no reference to other banker as no one holds exclusive charge on asset)??
2 Answers from Attorneys
The co-operative bank's decree can be executed by sale of the mortgage property. But the proceeds have to be shared with other pari passu charge holders.
the bank can proceed with the decree by selling the mortgaged property.better you consult to lacal advocate for future guidance.
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