Arrears of assets acquired under SARFAESI

"the charge holder demanded his dues from my client". What is the nature of the demand - is it that the matter has reached the Court?

 

What is the present status of the matter?

Originally posted by : Anand s
	a private company has defaulted on a loan taken from a bank the bank took the position of the mortgaged land under sarfaesi Act and auction of the property which was purchased by my client.the company had also created a charge on the same mortgage land for long term financing the charge holder demanded his dues from my client. what will be the validity of action of the charge holder against my client.

1. Property purchased via a Sale Certificate under SARFAESI is irrefutable & final and no further claims are possible on the property by other unsecured Financiers, except by following due procedures of law, which is possible  against the original owners.

2. The other intermidiate financiers are stopped by law of estoppel, for failing to intervenue in the court dispute during SARFAESI proceedings and there is no privity of contract between the current buyer party and the other intermidiate financiers, which warrant them to demand any outstandings amounts from buyer parties.

Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com

I have seen such judgments that the authorities should not demand from purchasers on google.  Please search.  There were 3 or 4 judgments when I have searched 3 years back.