Dear,
Company A has taken working capital limit from bank and Individual B (Guarantor) has mortgaged a property for the same. the property mortgaged is taken on lease form state government and the lease agreement clearly prevents mortgaging the property and gives power to prevent the same.
Company A is paying Interest regularly but still the bank plays foul and declares NPA. Sends notice to guarantor to regularize the account. Guarantor pays the interest to regularize the account. Bank sends notice that the mortgaged property will be taken if entire loan not repayed in 60 days. Loan has never been recalled.
Company A ask for restructuring of account. Bank agrees and asks to pay small token amount. Company A sends token amount with letter giving 3 restructure options and condition that the cheque is only for token amount for accepting any one of the option in the letter. Bank deposits the cheque without restructuring loan. Then sends sale notice for the mortgaged property.
MY QUERY :
a) Can the bank sell the mortgaged property taken on lease from the state government when the lease deed does not allow the same.
b) What is the best remedy for A & B /
c) Please cite some caselaws.
