sarfasi act
preet
(Querist) 21 January 2011
This query is : Resolved
party take loan from bank and afterward recived sarfacy notice. In this case party and also his lawyer fells party case is strong. notice is only recived due to bank falt. now wht the borrower do??? make writ or not in high court
N.K.Assumi
(Expert) 21 January 2011
But what are the faults of the bank in issuing the notice under sarafasi?
N.K.Assumi
(Expert) 22 January 2011
The position under sarfasi is this.
To issue demand notice to the defaulting borrower and guarantor, calling upon them to discharge their dues in full within 60 days from the date of the notice.
To give notice to any person who has acquired any of the secured assets from the borrower to surrender the same to the Bank.
To ask any debtor of the borrower to pay any sum due or becoming due to the borrower.
Any Security Interest created over Agricultural Land cannot be proceeded with.
If on receipt of demand notice, the borrower makes any representation or raises any objection, Authorised Officer shall consider such representation or objection carefully and if he comes to the conclusion that such representation or objection is not acceptable or tenable, he shall communicate the reasons for non acceptance WITHIN ONE WEEK of receipt of such representation or objection.
A borrower / guarantor aggrieved by the action of the Bank can file an appeal with DRT and then with DRAT, but not with any civil court. The borrower / guarantor has to deposit 50% of the dues before an appeal with DRAT.
Advocate. Arunagiri
(Expert) 22 January 2011
In the matter of SARFAESI act the HC has no jurisdiction, Only DRT can interfere.
bhagwat patil
(Expert) 26 January 2011
In SARFAESI act only for procedural lacuna you can go for writ.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 22 January 2011
