AKSHANSH SINGHAL (ADVOCATE) 04 February 2014

Securitisation

Dear Friends..

My Query to the esteemed members is regarding SECURITISATION :-

The bank had auctioned the premises and sale has been confirmed and possession is being handed over to the purchaser. There are certain machinery lying in the premises which was not hypothecated to the bank. Therefore bank cannot move under SARFAESI. Can bank can sell these machinery by giving notice to the borrower for taking the machinery in his possession.What are possible solutions available in the light of these facts.

Regards

Reply Follow

5 Replies

c.p.s. ramachary (1500) 05 February 2014

When bank has no security interest in respect of the machinery, it cannot sell them under Sec.13 of SARFAESI Act. You have to invoke Sec 17 of the said Act within time. SA can be filed pleading that the bank has no security interest against the movable machinery for enforcement under Sec 13 of the Act.

1 Like

Advocate Bhartesh goyal (advocate) 06 February 2014

Rightly opined by shri c p s ramachary.bank has no legal right to take possession and sell the machinaries which are not hypothicated under sarfaesi.challenge the action of bank in DRT under sec 17 of the Act.

narendra.s.p (Chief Manager(Law)) 10 February 2014

It is made clear that machinery is not hypothecated or secured by way of pledge to the Bank. Is the machinery lying in the factory premises which the bank has taken Possession? Is the borrower not obliging to lift the machinery despite reminders? Has the Bank claimed any demurrage?

AKSHANSH SINGHAL (ADVOCATE) 10 February 2014

Sir To put further clarity, bank sold the premises and some machinery is lying there and the purchaser wants to get that machinery removed and bank sent reminders inspite of that borrower is not responding to that. What further action ban can take ? Whether bank can sale that machinery or can any case law in reference to such situation. Regards