Is pre-deposit necessary for stay in void Sarfaesi action?.
s.loganathan
(Querist) 13 November 2010
This query is : Resolved
1, Bank had declared my a/c as NPA, issued 13(2) and abandoned by not taking further action.
2. Bank declares my a/c again as NPA, and issues 13(2) & 13(4), but abandoned again by not making mandatory paper publication.
3. Bank for the third time issues 13(2) notice as 'Fresh Notice' based on the same date of NPA as second 13(2) notice. As the bank had, as per the doctrine of issue estoppel, waived its rights when it took possession u/s 13(4). Neither has the Bank reconveyed possession nor has it declared the a/c as NPA afresh to qualify for a 'Fresh' cause of action to issue 'Fresh' 13(2) notice. In this advent, the third 13(2) notice & subsequent 13(4) possession is not legal.
4. I had brought this particular point to the notice of the Authorized Officer in my representation & objection u/s 13(3A).
5. I have filed an application before the DRT on the above unlawful notice and a host of other gross infirmities caused by the Bank including the declaration of my a/c as NPA since it was not overdue and interest in full was serviced and within my sanctioned limits, within 90 days.
6. In the application I had listed out the loss & damages that I had suffered, which is about 250 times the amount claimed by the Bank.
7. My question is, in the wake of an illegal invocation of Sarfaesi provision vide unlawful NPA qualification as per RBI guidelines, and the illegal third 13(2) & 13(4) actions. Would I need to make a pre-deposit in order to get a stay on further action by the Bank based on the third notice?
adv. rajeev ( rajoo )
(Expert) 13 November 2010
Some times court may direct to deposit the amount to get the stay.
Devajyoti Barman
(Expert) 13 November 2010
Yes and the amount may vary n each state.
s.subramanian
(Expert) 13 November 2010
You can file an application to dispense with such deposit on the ground that you are challenging the proceedings of the bank as basically illegal and void ab initio.
s.loganathan
(Querist) 14 November 2010
Thank you Mr. Rajeev & Mr. Subramanian for reading the chronology before answering. I have applied for a stay & also challenged the legality of the notice ex-facie. Based upon the continuous perpetration of malafide acts by the Bank, is there any kind of caveat that I can apply for so that I may be notified before any CJM issues any order on an application before it by the Bank?
