repeated query
Attaching properties of minor - sarfaesi act
Party Mr.A took a loan from bank for running his two industries. Mr.A mortgaged properties to the bank. Mrs.A and Mr.B (son of Mr.A) also were co-borrowers. Business tanked and court attached properties that were mortgaged in the year 2010. Two scenarios below.. (1)Mr.A had some properties that he did not mortgage to the Bank. Before being declared NPA, Mr.A transferred those properties to his Daughter Ms.C. Can bank attach these properties post declaration of NPA (2) Mrs.A (co-borrower) inherited a property from her father after. At that time, Mrs.A inherited a new property. She immediately transferred the property to her minor grandson. Can bank stake claim on this property? (3) The first unit of Mr. A was sold in april of 2012 and the second unit was sold on the december of 2012. I also need to know whether there is any limitation period for the sarfaesi act. And are there chances for bank to attach personal assets now(the bank has not gone for any suits till date).
Asked 10 years ago in Business Law
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5 Answers
Hi This is not a repeated query I have made modifications to the existing query which suits the case.Kindly provide your views. thanking you
Asked 10 years ago
1) No the said properties are not mortgaged to bank . it can be disposed of
2) No bank cannot claim the property gifted to her grand son
3) as on date bank has not taken any legal proceedings . no notice has been issued .dont panic . consult a local lawyer . apply to bank under OTS
And it has been more than 4 years since the bank has taken sarfaesi action. is there any limitation period for sarfaesi act. the bank has sold the property and I believe that the outstanding liability may be around 2.5 crores after sale on the pledged property. but till date we have not received any kind of intimation from the bank to pay the remaining money. do you think we are left out from the problem or are there chances for any progression from the bank side.
Asked 10 years ago
if no action taken by bank for 3 years claim of bank would be barred by limitation . Rs 2.5 crores is substantial sum of money . bank must be having some blank letters signed by you . they may fill in details and take legal proceedings to bring claim within limitation period f or balance amount .
I was told that the bank had employed a detective agency to investigate but they have concluded with a report that the borrowers have no assets to liquify. so what may be the next course of action by the bank
Asked 10 years ago
keep a low profile . bank may write off loan as per report of detective agency .
for now Mrs. A has inherited a property from her father. so would there be any problem is she transfers the property to her grandson. please show some safe method for transfer. the land is an agricultural land and it has not yet been partitioned(i.e the land is co owned by mrs. A and her sister)
Asked 10 years ago
sell the land . dont keep any assets .