Banking

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Facing Sarfaesi Act

1)      For taking recourse to section 13(4), Statute has not fixed any time limit.

2)      There is no time limit fixed for auction of the property.

3)      The banks action can be stopped under the Order of the DRT, in appeal.

4)      Yes, the bank can recover total interest, till  the date of adjust ment of the loan account.

5)      Under the Sarfaesi Act , the bank is not bound to take possession of stocks . Mostly the banks take  action against the mortgaged property .

6)      Symbolic possession is de facto possession and it is not actual physical possession.

7)      If the loan account is adjusted from the sale of mortgaged property the bank may not enforce hypothecation charge.

I endorse the views of Shri Ajit Singh Cheema.

I endorse the views of Shri Ajit Singh Cheema