Sarfaesi act-2002
Vinesh K Chhaya
(Querist) 01 February 2013
This query is : Resolved
RESPECTED ALL
MY CLIENT IS A DEBTOR OF A MULTISTATE CO-OPERATIVE BANK IN GUJARAT. HIS PROPERTY ALREADY ATTACHED UNDER PROVISIONS OF SARFAESI ACT-2002, SECTION 13(2) AND 13(4) ARE ALREADY APPLIED. PROCEDURE OF AUCTION FULFILLED, EVEN THOUGH THE ADVERTISEMENT OF INVITING TENDER HAVE PUBLISHED 3 TIMES, NO ONE CAME TO PURCHASE SUCH IMMOVABLE AND MOVABLE PROPERTY. DURING THE TIME OF PROCEDURE, MY CLIENT HAS ARRANGED AMOUNT OF DEBT BY DIRECT SELLING OF PROPERTY..
MY QUESTION IS THAT "MY CLIENT HAVE THE FIRST PRIORITY TO SELL THE PROPERTY IF NO TENDER ARRIVED?
EXPECTING JUDGMENTS WITH DETAIL....
THANX
VC
Nadeem Qureshi
(Expert) 02 February 2013
DEar Vinesh
it's depend on the bank if there is no cort proceeding, if the DRT is involved in this matter then filed an application before DRT and pray to allowed the same for sell the property by your client and deposit the amount in bank or before the court. the court may pass an order in this regard.
Feel free to call
R.K Nanda
(Expert) 02 February 2013
yes, in that situation he can sell.
Hazarae M Raj
(Expert) 02 February 2013
If your client is selling the property which is already charged to the bank, without getting prior permission from the bank, his act may amount to breach of trust and cheating.. Advise your client to discuss the matter with the bank and to ask for a One Time Settlement (for which the bank also will be happy as no one is coming forward even after 3 sale notifications). It is always advisable to settle the matter amicabily, eventhough u can approach the court for some relief, which may take more time and money. Please remind that the account balance will shoot up day by day..
K.K.Ganguly
(Expert) 03 February 2013
1. No. Actually your client has the priority to purchase the property from the Bank which no longer belonged to him,
2. In such cases what your client should do is that he should settle te deal with the customer and appeal to the Bank for their selling the property to the said customer to realise the outstanding amount,
3. You should enter in to a Tripartite Agreement with the Bank to this effect which the Bank will accept.
Raj Kumar Makkad
(Expert) 03 February 2013
Move an application to the banker that you are ready to purchase the property as this is your preferential right. The banker shall have to accept it failing which approach DRT and get the desired order and then pay the sale price out of the money received from the proposed buyer or offer to directly sale the property under the presence of the bank officials to third party directly.
c.p.s. ramachary
(Expert) 04 February 2013
As the property is charged to the bank, your client cannot sell the property without prior written consent of the bank. There is nothing like priority to borrower to purchase the property. His right is only to redeem the property by paying the entire debt and charges incurred for taking action under the SARFAESI Act. That is all. If there are no bidders, the secured creditor bank may authorise one of its officer to purchase the property by participating in the bid if the bank chooses to do so,according to the latest amendment to SARFAESI Act(came into force w.e.f.4.1.2013).Hence it is better your client goes to the bank and negotiate for closing the account by paying under compromise if the bank agrees for it.
K.K.Ganguly
(Expert) 04 February 2013
1) The buyer found by the borrower normally will not agree to pay the outstanding amount directly to the borrower or to the Bank on account of the borrower without any security because the borrower may refuse to sell him the said property at the agreed price or at any price later on,
2) To cover the said risk, the buyer will ask for a tripartite agreement between the borrower, Bank & the buyer wherein it will be agreed by all that the Bank will issue sale certificate to the buyer on receipt of the payment of the outstanding lying on account of the borrower i.e. your client.
RAJU O.F.,
(Expert) 08 February 2013
Subsequent to SARFAESI proceedings by bank, it is illegal if the mortgaged property is sold without permission from bank. Approach bank for permission by remitting the proceeds of the sale to the loan dues.
