Stay of proceedings initiated under securitisation act by a banker
nagarajupatro
(Querist) 29 March 2012
This query is : Resolved
Respected Experts Pls tell me about the following:
X borrowed loan from bank for which Y&Z(father&mother of X)stood as gurantors and made simple mortgage of their own house infavour of the bank. X became defaulter , but bank did taken any steps. In the meanwhile Y i.e, father of X borrowed amounts from individuals and became defaulter, left to other station along with family.A,B,C,D, filed suits along with atachment before judgement petitions against Y, basin on the pronotes. All the individual plaintiffs got exparte decrees in their favour, and court made attachment of the schedule property. The banker kept quite for a long time and he is one of the party to the IP filed by along with other borrowers except D. D is not shown as respondent in IP. recently banker taken steps by way of making publication that the bank is going to sale the schedule property of the gurantors for recovery of the loan amount and called for sealed tenders.
If the banker sale the schedule property the value may not high and the decreee holders will not able to realise their amounts more particularsly the D has to suffer a big loss. then What D has to do?
Banker can sale the schedule property which is attached before judgement?
As the D is not a respondent in IP can file EP immediately?
Banker is the 1st respondent in IP, can he take such steps, whithout disposal of the said IP? under securitisation act?
Can the D issue registered legal notice to the Banker to withdraw from taking steps for sale of the schedule property without filing EP.?
ajay sethi
(Expert) 29 March 2012
wehn said property is placed for auction D should submit a bid . this will prevent unscuplous applicants quoting low bid and getting the said property at reseve price .
bank is a secured creditor . said property has been mortgaged to bank . bank is enttiled to sell property mortgaged to it by auction . in event any surplus funds remain after property is sold you may recover your dues .
legal notice issued by D wont serve any purpose . you should particpate in auction so that property is not sold at low price
RAJU O.F.,
(Expert) 30 March 2012
Bank's mortgage got first charge. If bank proceed under SARFAESI and sell the secured property, others only get balance of surplus only. If you are aggrieved on the action of the bank, you can file Appeal before DRT u/S 17 of SARFAESI Act praying to stop sale on the ground that already attachments are subsisting on the property.
Guest
(Expert) 04 April 2012
I endorse the views of Shri Ajay Sethi.
