Marni Papaji Rao (Advocate) 10 February 2009

remedy in case Bank fails to gie reasons under Section 13(3) of the Securitisatin Act

the Bank has not communiated its reasons as mandated under Section 13(3) of the Securitisation act and instead takes symbolic possession under Section 13(4). What is the remedy.?

Thanks for advice.

papajirao

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2 Replies

Uday (Lawyer) 27 June 2009

If the objections raised by you is not replied within 7 days from the date of receipt of your objections, but they take the symbolic possession of the property, then such possession is not valid in law. You can challenge the action of the Financial Institution before the DRT under section 17 of the Securitisation Act

Marni Papaji Rao (Advocate) 29 June 2009

Thank you for your message.

However what is the fee to be paid. On the value of the loan claimed or on the value of the specific property? or on what baasis?

Further the application by the Bank is under Hyderabad DRT. But the property is under the jujrisdiction of Vizag DRT. Which is the right place? can we file in Vizag DRT, which place is near erand convenient.

Kindly elucidate. thanks

Papajirao