akshay (Director) 04 February 2010

Urgent Help: about sarfaesi act co-operative bank

Is Sarfaesi Act applicable to co-operative bank?

i.e. can co-operative banks use Sarfaesi Act for the recovery of their debts of loan amount?

Please reply its urgent…

akshayweb@gmail.com

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5 Replies

Avinash Gupta (lawyer) 05 February 2010

yes co operative bank can use sarfesia for debt recovery

AEJAZ AHMED (Legal Consultant/Lawyer) 05 February 2010

Kindly go through the following site:

https://www.drat.tn.nic.in/Judgements/J-061.htm

Brief Facts"

This appeal is preferred by the Appellant Bank challenging the impugned Order passed by the DRT, Bangalore in ASA-16/2006 on 12.2.2008.

2.The facts of the case leading to the filing of this Appeal may be set out briefly as under:

The Appellant Bank initiated the proceedings under Section 13(4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (herein after called as SARFAESI Act) against the 1^st respondent and his guarantors for recovery of loan amount of Rs.4,92,000/-, availed by the 1^st respondent.

In the above facts of the case, the points for consideration are as follows:

1. Whether the proceedings initiated by the 1^st Appellant Bank herein (viz) the Authorised Officer/General Manager of Sri Basaveshwar Co-Operative Bank Ltd., is not maintainable in law?

2. Whether the impugned Order passed by the DRT, Bangalore in ASA-16/2006 dated 12.2.2008 is liable to be set aside?

the Appellant Bank is at liberty to proceed against the Respondents under the provisions of the Karnataka Co-operative Societies Act, 1959 and the Rules made thereunder. However, there will be no order as to costs in this appeal.

Isaac Gabriel (Advocate) 05 February 2010

The cooperative Societies Act enables to proceed against the defaultes by filing Arbitration and Execution proceedings.Also could proceed by caonditional attachment s of the properties.So,they need not resort to Searfeasi Act.