Notice under Section 13(4) of SARFAESI Act, 2002

Dear Amol,

As per Supreme Court judgments cooperative banks come under the purview of SARFAESI Act, hence there is nothing wrong if a cooperative bank issues a notice under said Act.  After the bank takes any action under section 13 (4) you have to move the DRT by filing Securitization Application under Section 17(1) of the Act.  Before that when you receive Demand Notice under Section 13(2) you have the option to make any representation to bank regarding reduction of excess interest charged etc.  In that representation you can demand the bank to supply with necessary documents to enable you to calculate on your own the amount of balance and you arrive at the present outstanding balance using Microsoft Excelsheet it is simple calculation.  If it is floating interest rate you can demand the banker to supply the rates of interests and changes thereon and calculate accordingly.  You can argue in your SA that excess interest has been charged in your account if you find any variation between your own calculation and bank statement.  Or if the bank neglected to supply necessary data, you can complain about it to DRT and seek stay from it till bank supplies the necessary data to you so that you can argue your case properly. 

Thanks and regards,

Chennakeshava

SRI CHENNAKESHAVA

PLEASE UPDATE MY KNOWLEDGE BY SENDING THE CIATION BY WHICH THE COOPERATIVE BANKS ALSO CAME WITH IN THE FORCORNERS OF SARFASI ACT

THANKS

AJAY VARSHNEY

ADVOCATE

https://www.lawyersclubindia.com/forum/Re-Urgent-Help-sarfaesi-act-co-operative-bank-14307.asp#69809

The notification No. S O.105(E) dated 28th January, 2003 of  the Central Government declaring “Co-operative Bank” as defined in  clause (cci) of section 5 of Banking Regulation Act, 1949 to be a bank for the purposes of SARFAESI. Section 13 of SARFAESI Act, 2002, can be challenged on the ground that the same is a notification and not a Statute/Act passed by the Legislature, since the same tries to encroach upon legislation by inserting a new entity in the definition of the Bank in Banking Regulation act and that too without any amendment in the parent act. Thus the same is ultra vires

Dear sir

Securitisation Application(SA) under section 17 can be filed only when action u/s 13(4) or 14 initated by the bank . otherwsie no cause of action for SA.

Bank can issue fresh notice and no bar on second notice u/s 13(2). You can file Securitisation Application u/s 17 of the Act when action  u/s 14 is initiated by Bank sicne it is equallant to section 13(4) of the Act.  

Though the permission not obtain from Authority, action under SARFAESI can be initated in this case and you can not take the defence of Agricultural land  and this kind case decided by High ccourt, Madras in favour of Bank. You have no case of defamation .   

Keep cool, after reciept of notice from lender raise objection which they have to reply withing seven days. Issue fresh counter objections. Meawhile issue legal notice forwarning any illegal possession except order from competant court.

hi,

Any one help me. i have been issued a notice under Section 13(4) on my fathers property and bank has not got the property document. my father have it. what is the possibility of the bank to auction my fathers property.

Sir,

First of all it cannot be considered as a notice issued by the Bank. With out issuing the notice to the borrower in an appropriate manner and giving him time, the Bank cannot proceed under Securitisation Act. Hence the court cannot take into purview such case. therefore , there never arises the question of appeal as there can be no existing order against the borrower.

Ha Ha Ha...

Bank can do whatever they want because the legislature has provided them ample Powers...

If father's property is mortgaged in any manner, irrespective of the fact that you or your father have the property docs, the Bank can Auction the property...

Bank will first issue Demand Notices and and then Possession Notice and then Sale Notice and atthe last the Auction will go on if you sit over your rights... No One can save you...

Take immediate Legal Steps...

Consult a lawyer near you immediately...

Mr.A.K.D.Sayare, my apologies for delay in replying to you. Due to some personal inconvenience I was not active in the forum for more than a year. By the way, after the amendment in the SARFAESI Act, there is a provision made out under section 18(c) for the Secured Creditors to file caveats.

Dear Sakharam,

You cannot claim loan as your right. The question that arises is whether you availed a loan or not? If availed, have you defaulted in your payment? If your answer is affirmative you do not have a case unless there are some procedural lapses while proceeding under the SARFAESI Act. Please don't waste your money anywhere else. Better pay the Financial Institution and reduce your burden