Queries reg- SARFAESI ACT Sec-13, 13(2), 13(A), NPA

I seriously doubt this.... the Act simply says the a/c to be declared NPA say by guidelines issued by RBI. One of the guideline is that an a/c may be declared NPA if interest is not serviced say for 90 days (diff period for diff credit facilities)

Can the bank take the possession under SARFAESI Act on Sunday or public holiday ? If "No" under which provision?

There is no specific provisions with regard to days and time for taking possession of secured assets under the SARFAESI Act.  Many banks are doing it even in late hours with the help of recovery agents (goondas).  There are several cases in which Supreme Court and High Courts had passed strong strictures against such institutions.

at the very begaining if the status of npa is challenged in hc the case may be different, i think.

Dear Raja,

As you know, if the principal or interst is not paid for 3 months (3 instalments), the account can be classified by the bank as NPA and they can directly issue SARFAESI Notice giving you 60 days notice to repay the loan. There is no legal necessity to give you another notice U/s 13 (4), but some banks are issuing the same only to give you a chance for remitting the dues before possession proceedings. If you have not paid the amount within 60 days, the bank can take possession at any time. If the property is a dwelling house, bank will normally take symbolic possession and may approach the Magistrate for helping them to vacate you and to take vacant possession. The right to appeal will start only on initiation of 13(4) - Possession proceedings. ie; once a notice under S.13 (4) issued or when the bank has taken symbolic possession. In your case you have not received any reply for your representation even after 7 days, which means that you can appeal on this ground itself.

You have two options. 1) file an appeal before the DRT or before the HC (on some other grounds) and delay the proceedings- In which case you will have to bear the heavy interest charged by the bank. OR 2) You can consult the matter with the Divisional office or Authorised Officer of the bank (not the Bank Manager) and may try to get a One Time Settlement - in which case the bank may give you some interest cncession and you will have to pay the dues agreed within a specified time. Remember that Banks cannot be defeated in any manner and you wil have to pay the dues at any time, as demanded, So mutual settlement is always better.. 

Dear Raja,

As you know, if the principal or interst is not paid for 3 months (3 instalments), the account can be classified by the bank as NPA and they can directly issue SARFAESI Notice giving you 60 days notice to repay the loan. There is no legal necessity to give you another notice U/s 13 (4), but some banks are issuing the same only to give you a chance for remitting the dues before possession proceedings. If you have not paid the amount within 60 days, the bank can take possession at any time. If the property is a dwelling house, bank will normally take symbolic possession and may approach the Magistrate for helping them to vacate you and to take vacant possession. The right to appeal will start only on initiation of 13(4) - Possession proceedings. ie; once a notice under S.13 (4) issued or when the bank has taken symbolic possession. In your case you have not received any reply for your representation even after 7 days, which means that you can appeal on this ground itself.

You have two options. 1) file an appeal before the DRT or before the HC (on some other grounds) and delay the proceedings- In which case you will have to bear the heavy interest charged by the bank. OR 2) You can consult the matter with the Divisional office or Authorised Officer of the bank (not the Bank Manager) and may try to get a One Time Settlement - in which case the bank may give you some interest cncession and you will have to pay the dues agreed within a specified time. Remember that Banks cannot be defeated in any manner and you wil have to pay the dues at any time, as demanded, So mutual settlement is always better..