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AJain_India (Law Student)     01 October 2012

3rd party property

 

 there is an industrial plant which is constructed on the land of 2 different companies A&B. The entire plant belongs to company A and company A has taken loan for the plant from the bank. 

now the loan has turned bad and bank sale is expected.  since portion of the plant also comes on the land of company B and company B has nothing to do with the bank loan (thoguh directors are common)

1 can it appeal in the court against the sale since if the plant is sold, the buyer encroaches upon the land of company B

2 what can be the possible outcome, since it is a constructed factory and who can be the deciding authority in such a case



Learning

 1 Replies

Ajit Singh Cheema (practising Advocate)     01 October 2012

Facing and defending Sarfaesi Action.

1)The company B should file an appeal in the concerned DRT under section 17 (1) , as under this Any person including the Borrower can file an appeal.

2) There appears to be serious appraisal lapse.

3)  Under such circumstances ,while granting such loans the property belonging to the company “ B” must have been got mortgaged.

4) Now the decision of DRT may be given after taking in to consideration  all the pleadings made.

5) The Bank cannot touch the property belonging to the company “B”, as the same neither mortgaged nor kept under any sort of charge| security.

Facing and defending Sarfaesi Action.

1)The company B should file an appeal in the concerned DRT under section 17 (1) , as under this Any person including the Borrower can file an appeal.

2) There appears to be serious appraisal lapse.

3)  Under such circumstances ,while granting such loans the property belonging to the company “ B” must have been got mortgaged.

4) Now the decision of DRT may be given after taking in to consideration  all the pleadings made.

5) The Bank cannot touch the property belonging to the company “B”, as the same neither mortgaged nor kept under any sort of charge| security.


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