Possession of agricutural land under surfesi by bank

Dear, Having regard to the issues on which the opinion is sought, my reply would be as

1. Can the Bank take over the said Agricultural Property in DRT in our case ?

Ans : After the application is filed with DRT, the Bank can not, on its own, take over the property. It may have to wait for the decision of DRT. The decision would come after your reply is submitted. In case no reply is submitted, DRT can pass Ex-parte order... So take over by the bank  is ruled out in DRT cases. DRT can sell the agriculture property in execution of recovery certificate ... [ which is issued after following due procedure as prescribed under the DRT rules]

2. SARFAEI Act can not be invoked against agriculture property...

Further, if the account is settled under OTS... after payment all parties would be discharged from their liabilites... In case the litigation continues.. and DRT issues decree / recovery certificate, besides firm's assets, in case guarantee is given, all guarantors would be liable personally. The partners of the firm are also liable personally for the debt of the firm....  The  decree / recovery certificate reman valid for 12 years from the date of issue... In DRT proceedings, the bank can recovery from the personal assets of the judgement debtors [ excepting the assets excluded from sale like .. Mangalsutra of a women, tools of craftman / artisal etc., assets needed for suvival of a person] 

Hope this will clarify your doubts 

Dear Mr. Pervez, Thanks for your invaluable advise. I wish to tell you that the gurrantor is the owner of the said agricultural property kept as collateral with the bank & the Partners do not have anything in their name, but one property (whose papers are not put in with the bank as collateral) of the gurrantor is sub-judice. Then, can the DRT order its possession in order to recover the balance dues after autioning/selling the agricutural property mortgaged with them ?

Also, if there is movable/immovable proerty a small business running in the name of the WIFE of the Partners/Guarrantor, can the same be acquired under any law by the DRT/Bank ?

Thanks & best regards.

There are Supreme Court Orders on classification of land as agricultural land , and usage to that effect. There is prohibition under section 30(iI) of SARFAESI Act.

rajasekaran

Possession of agricultural property cannot be taken through SARFAESI proceedings; but can attach and sell the said properties through DRT proceedings.  After sale of properties, remaining portion of the decree-debt can be recovered within 12 years from decree from personal assets of the decree-debtors.

Possession of agricultural property cannot be taken through SARFAESI proceedings; but can attach and sell the said properties through DRT proceedings.  After sale of properties, remaining portion of the decree-debt can be recovered within 12 years from decree from personal assets of the decree-debtors.