Sarfaesi act
pandarinath
(Querist) 03 April 2012
This query is : Resolved
whether the secured asset is an agri cultural land ,what is the other remedies available for banker under sarfaesi act.
SAINATH DEVALLA
(Expert) 03 April 2012
Dear Pandarinath,
As per the directions of DRAT,the banker will proceed only against the security given for obtaining loan.
Raj Kumar Makkad
(Expert) 03 April 2012
Agricultural land is also a security and banker is free to move ahead for recovery as is done with respect to other mortgaged properties. There is no immunity for agricultural land under SARFAESI Act.
barun deka
(Expert) 04 April 2012
i disagree with mr makkad, agricultural land is exempted from the provisions of the Sarfaesi Act under Section 31(i). So it debars the secured creditor from securitizing the same under the act. However, there appears to be no bar under the Recovery of Debts due to banks and other financial institutions Act, so i guess (subject to correction), once the DRT issues a certificate against an application under Section 17 of the Recovery of Debts due to banks and other financial institutions Act, such land can also be attached and sold. Only thing is the creditor cannot on its own by invoking section 13 of the SARFAESI act securitize the same.
RAJU O.F.,
(Expert) 07 April 2012
Strictly speaking, bank cannot attach and sell agricultural property securities under SARFAESI Act. There are some judgments allowing the bank to attach and sell the agricultural property, if such property is used as non-agricultural purposes or, if major portion of the property is not used for agricultural activities. In such case bank can attach and sell the agrl. property through civil court or if the dues are more than Rs.10 lakhs,through DRT
c.p.s. ramachary
(Expert) 15 April 2012
Agricultural property is not security interest. Therefore it is exempted under Sec.31(i) of the Act.
Agricultural land is not defined in the Act. It is settled law that evidence of agricultural operations (Basic operations i.e tilling of land, Intermediary operations like sowing of seeds, irrigation, removing extra growths, fertilizers, pesticides and final operations such as harvesting crops etc. is necessary. See Supreme Court in Raja Benoy kumar Saha Roy's case. This view is again fortified by Supreme Court in several cases. Classification of land as agricultural land itself is not sufficient but its utility as agricultural land is important for consideration for deciding the fact whether it is agricultural land. Cessation of agricultural operations for a long period without reasons does not come under exemption. However temporary cessation due to continuous drought condition can not be treated as cessation of agricultural operation. If agricultural produce is derived out of land it is sufficient to seek exemption under the Act and nature of produce has nothing to do. The above points are to be born in mind while enforcing the security interest.
R.Manivasagan
(Expert) 09 November 2014
Respected seniors,
What is the procedure to be adopted by the minor girl, to challenge the proceedings, when she is having an interest over the property which was given as a surety by her father to the bank?
please note that the minor girl is not a beneficiary in that loan trnsaction.
Advocate. Arunagiri
(Expert) 09 November 2014
If the matter is pending before the DRT, the minor case be represented by her guardian, can implead in the DRT case and can get suitable orders.
R.Manivasagan
(Expert) 10 November 2014
thanku senior. Is the DRT having power to decide all the questions such as partition and seperate possession
