Legal Question in Securities Law in India

I want to know the Validity period of Demand notice under Sarfaesi act 2002. i.e, i received a demand notice on august 2010 , later i paid the irregular EMI's and i'm regular from then. But, previously my 3 loan accounts became irregular by 3 months each. And they pasted possession notice on the wall mentioning as the further proceeding for the previous August 2010 issued Demand notice. Before recieving possesion notice i paid all the irregular EMI's and reguralised my all the three accounts. But , they without checking the status of the accounts, they pasted the possession notice on the outer wall of my house without any intimation to me. That severely damaged my Social image & status.

I want to know:

1) How long(i.e, in months) the demand notice issued will be active even after regularising the 3 said accounts?

2) According to under section 31(h) of sarfeasi act 2002, Provisions of this Act not to apply to any security interest for securing repayment of any financial asset not exceeding one lakh rupees. Here, i have attained housing loan in 3 parts. first in 2005 and then 2nd in 2008 and a personal loan under home plus scheme in 2009. But, considering the loans as 3 loans each. My payable EMIs doesn't exeed 1 lakh each for each loan account. Only, in overall they exceed 1 lakh rupees. So, does this act apply in my case?


Asked on 7/14/12, 3:31 am

1 Answer from Attorneys
Global Legist Advocate & Legal Consultants

Hello,

Nothing will happen automatically. Meet the branch manger and explain him the situation.

Convince him that hereafter, you will be regular with instalments and take a cancellation letter(for notice).

If, amicable appeal fails, immediately proceed before DRT and plea for a stay.

overall you only have 30 days.

Bank has nothing to do with possession. Eventually they will sale the property, take their money including all expenditure on sale and litigation and give rest to you (if any).

For any further inquiry please contact us.

With Regards

Global Legist

Advocates and Legal Consultants

+91 9873400403

[email protected]

www.globallegist.com

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Answered on 7/14/12, 1:37 pm


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