Legal Question in Banking Law in India

Re: Notice Under SARFAESI Act

Under SARFAESI Banks have power to take possession of the property/assets charged to them and sell them after due process prescribed under the rule. When your proposal is not accepted by the Bank it is presumed that Bank is not convinced about your repayment capacity and the Bank has feeling that you can pay more.. If so,try once again to convince the Bank officials including the higher authority about your actual position.

(i) Bank will take possession of the property charged and will sell by public auction after observance of due process. In case of shortfall Bank will file civil suit against you and guarantors in DRT/civil court(depending upon the amount of shortfall) to recover the dues. If it is found by the Bank that stocks and other securities charged is sold by you and the proceeds has been used by you for other purpose then Bank can consider filing of criminal complaint also

(ii)Please approach the higher authorities and represent your case in more professional manner. You can also consider to approach Bank's Ombusman in your state though chances of getting help from him are less as basically this is not a complaint against Bank-service

(iii)No help is possible from DRT as Bank is doing everything within powers under SARFAESI

(iv)Yes

(v) Drt will take action to recover the dues from other properties of borrower & guarantors

Re: Notice Under SARFAESI Act

Under this Act, you can move High Court after your property has been acquired by the bank. But by then, property is gone.

What has the bank suggested you on improving your proposal? Were you offered to pay less in your proposal?

Contact me through email. I may help you.

Re: Notice Under SARFAESI Act

Your answers :

(1) The Bank has a total right to take the possesion.

(2) Contact a senior lawyer who is a real expertise in this type of matters.

(3) DRT will only help you if your case is well presented in the courts.

(4) Yes

(5) You may help the bank in recoveries.

In case of need please contact personally alongwith the details.

Professional charges are applicable.

Re: Notice Under SARFAESI Act

1)The Bank has a right to take possession.

2)contact a local expert lawyer.

3)DRT can't help you unless your case is well presented.

4)Yes

5)help the bank in recoveries

Re: Notice Under SARFAESI Act

The Bank can proceed to take possession under Sec.13(4)of the Act. You can file Sec.17 application before DRT and get stay and in that proceedings plead for referring the matter to Lok Adalat to settle the dispute. Go by your Local Lawyer's Advice whom you can choose after enquiries as conversant with these type of cases. No use in throwing individual cases for answer in this forum