Securitisation .........act, 2002
Manoj Pamul
(Querist) 30 August 2012
This query is : Resolved
Dear Experts,
My client had availed a loan of Rs. 10,00,000 from a multi state co-operative bank and he executed a mortgage deed for security. Thereafter due to non-payment of regular installments the account was scheduled as NPA. Afterwards on 27.04.2007 bank had issued a notice u/s 13(2)of Securitisation.....Act. Further bank filed an application u/s 14 of Securitisation.......Act before the District Magistrate for assisting to take the possession of mortgaged property. Accordingly as per order given by the District Magistrate and with he help of City Survey Officer the possession of the mortgaged property was taken by the bank. After 2 months the account was settled for Rs. 1038000/- principal amount and Rs. 210000/- an interest amount. Thereafter my client had paid total principal amount and accordingly the account extract shows the principal amount as NIL. Accordingly the possession was given by the bank to my client. Thereafter bank has not asked for interest amount for near about 5 years. Again the bank has suddenly filed an application u/s 14 of the Act for possession and claiming Rs. 27.0 lac as towards interest on the basis of notice issued u/s 13(2) on 27.04.2007.
Therefore, 1) whether the bank can file such application once again even though the principal amount has been paid and accordingly the account extract shows principal amount as NIL?
2) Whether the notice given u/s 13(2) is valid?
Pls guide me for above problem and suggest if there are any authorities to support this case. Thanking you all in anticipation.
K.K.Ganguly
(Expert) 31 August 2012
It is an unique case. As per me, the Bank can claim the unpaid interest which was agreed to be paid but was not paid. Based on this logic the Bank can apply to initiate action u/s14 of SARFAESI Act. to retake possession of the property.
malipeddi jaggarao
(Expert) 31 August 2012
Whether the title deeds relating to the mortgaged property is released and handed over to your client upon repayment of principal? If the interest portion is time-barred as there is no existence of mortgage. If title deeds are not released, your client should represent the bank to accept reasonable amount towards interest and get his documents back.
