Legal Question in Banking Law in India

If physical possession is taken of the property by bank under section 14 of SARFESAI ACT 2002,is it mandatory of the bank to issue notice to the customer . If the notice is not recieved by the customer can the bank proceed with the possession.

2) CMM or a DM of the court passes an order for physical possession of the property under sec 14 sarfasai act . is it mandatory for nim to send notice to the customer intimating the orders or not.


Asked on 9/19/10, 9:11 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

Before executing the delivery warrant, the officer concerned may or may not issue notice to the borrower. Only because possession could not be taken by the Bank on its own, it gets the assistance from the CMM or DM. In such a case no prior notice for executing the warrant is not mandatory unless the order in individual case stipulates one before executing the warrant.

Read more
Answered on 9/25/10, 7:20 pm


Related Questions & Answers

More Banking Law questions and answers in India