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AJain_India (Law Student)     01 October 2012

Bank sale for 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

K.K.Ganguly (Advocate)     01 October 2012

1) When  Company A constructed the plant on part of the land belonging to Company B, what was the agreement & itsterms for such occupation of land? The buyer will have the same status i.e. if it is for 90 years lease for Company A, the buyer also will have the same lease hold for 90 years.

2) If there is no agreement for such occupation, then Company B can aggitate & claim for recovery of its portion of land from the buyer.

3) Filing Sarfaesi Application before Debt Recovcer Tribunal  within 45 days of receipt of possession notice would have been ideal. If it has not been done, file an application before High Court claiming the same.

 


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