Kumar Singh (akkshay006@gmail.com) 20 October 2012

Sarfaesi act notice

I had taken a Mortgage Loan on my property. The account became NPA and the banker had sold the Mortgage Loan Account to ARCIL.

ARCIL recently pasted a Posession Notice on my propert u/s 13(4) of SARFAESI ACT.

In that notice they had also refered to a notice u/s 13(2) asking us to repay the loan amount in 60 days.

However I never received the notice u/s 13(2) and when we contacted them they said they had pasted the 13(2) notice 6 months back on my property.

On enquiring with my property managers - they said no notice was pasted on the property u/s 13(2) 6 months back.

Since I did not reply to the 13(2) Notice (whichi did not receive in the first place) - ARCIL had published the same in a News Paper and pasted the Posession notice u/s 13(4) recently.

Is there a remedy for me to buy time by contesting that Notice u/s 13(2) is not valid as I did not receive it in the 1st place.

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4 Replies

Advocate M.Bhadra 20 October 2012

You should file an application u/sec.17(1) of the SARFEASI Act in the D.R.T. within 45 days from the receipt of the notice u/sec.13(4) of the said Act for rstraing the Bank from taking physical possession,then you can move to the DRT for non-receipt of 13(2) of the SARFEASI Act and you will get sufficient time to pepay the loan.

Advocate Bhartesh goyal (advocate) 20 October 2012

File appeal u/s 17[1] of Safaesi Act in DRT and challange the action of bank as non issuing notice u/s 13[2] which is mandatory and not providing you an opportunity to pay due amount.get stay order from DRT.

RAJU O.F., (Advocate) 22 October 2012

Immediately prefer an Application u/S 17 of the SARFAESI Act against the Possession Notice u/S13(4). If the Demand Notice u/S13(2) was not served to you, the whole proceedings would be quashed. But if ARCIL had 1) sent the Demand Notice to you by Regd Post +AD, but returned unserved and 2) if they had pasted the Demand Notice on the property (not only Possession Notice) and 3) also published the DEMAND NOTICE within a few days from the date of Demand Notice and further 5) if the Possession Notice was issued 60 days after such publication of Demand Notice, then ARCIL is entitled to issue valid Possession Notice and also to proceed further.