Sir
Power of authorised officer under Sarfeasi Act starting from issuing Notice under sec 13(2) after account become NPA and ending on Auction cum sale of the property. Between this journey or transition objection came as to area of landed property mortgaged to bank, a portion of which was already sold by borrower to before he applies for loan to bank but hiding this he mortgaged full area of the landed property which was not revealed during legal search by the bank but came to light later after objection by his brother after 2nd search.
The case runs like this a loan was sanctioned against mortgage of property but after the account become NPA 13(2) notice was issued and an objection came from brother of the property contending that some portion of the property already purchased by him before the loan was taken. Surprisingly, legal search made by bank did not reveal this fact but confirmed after subsequent search conducted by bank. 13(2) issued with inclusive of portion of land sold to his brother so also 13(4) and possession notice in the Newspaper. But sale certificate is exclusive of area of land previously sold to the brother by the borrower. Now case is in DRT can DRT set aside sales for procedural lapse. Or Authorised Officer by excercising power enjoined in the Sarfeasi Act can rightfully issue Sale certificate variance of 13(2) and 13(4) but actually right.
Suhita Mukherjee
