• Sarfaesi Act 2002 u/s 14 physical possession notice 2nd time required

I am a Auction purchaser , Please advise if bank pasted the notice on 3rd March'2025 and given 15 days notice period to vacate the property which is already expired on 19th March'2025 also Bank sent a letter to the borrower for the same. 

Now bank received fixed date on 21st April'2025 from DM to physical the property,

My question is now then again is required to paste the 2nd time notice by Bank ?
Asked 3 days ago in Property Law
Religion: Hindu

9 answers received in 1 day.

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10 Answers

Yes it will give notice for the same but it’s better to approaching DRT for stay

Prashant Nayak
Advocate, Mumbai
33322 Answers
219 Consultations

Under Section 14 of the SARFAESI Act, the District Magistrate (DM) or Chief Metropolitan Magistrate (CMM) is not required to issue a notice to the borrower at the time of taking physical possession of the secured asset; their role is ministerial, not adjudicatory. 

If the borrower does not settle the dues even after symbolic possession, the lender can approach the District Magistrate (DM)CMM/DM Not Required To Give Notice To Borrower Before Taking Possession Of Secured Asset: under Section 14 of the SARFAESI Act to obtain physical possession of the property.

T Kalaiselvan
Advocate, Vellore
88341 Answers
2391 Consultations

Bank is bot required to paste again notice to take physical possession of property 

Ajay Sethi
Advocate, Mumbai
98145 Answers
7975 Consultations

For the proceeding under section 14 for taking physical possession of the secured asset of the Bank, it need nit give any further notice to the borrower.

In other words the borrower can not participate in a section 14 proceeding and the DM/CMM as the case may be  once satisfied with the mandatory disclosures by Bank can issue order for taking physical possession.

Devajyoti Barman
Advocate, Kolkata
23464 Answers
529 Consultations

Notice to vacate is given only once. Fifteen days are given to the  person  in possession of property, authority may take more time to enforce the  order to vacate. There will not be second notice.

Ravi Shinde
Advocate, Hyderabad
4787 Answers
42 Consultations

No, the bank is not required to paste the second notice under Section 14 of the SARFAESI Act, 2002 unless specifically directed by the District Magistrate (DM) or Court. The purpose of the 15-day notice issued on 3rd March 2025 was to inform the borrower about the impending possession, which has already expired on 19th March 2025.

Now that the DM has fixed 21st April 2025 for taking physical possession, the bank can proceed with possession through the authorities. The borrower has already been given due notice, and a fresh notice is not mandatory unless required under specific circumstances, such as additional legal challenges or objections raised by the borrower.

Shubham Goyal
Advocate, Delhi
930 Answers
5 Consultations

As the successful purchaser at the Sarfaesi auction, it is in your best interests to let the bank get the property vacated and deliver you vacant possession. The action taken by the bank to approach the DM is the proper way. Please wait patiently for getting a vacant possession.

Swaminathan Neelakantan
Advocate, Coimbatore
2995 Answers
20 Consultations

- No notice again required for evicting and taking possession by the Bank. 

Mohammed Shahzad
Advocate, Delhi
15056 Answers
229 Consultations

Dear Client, 

As a purchaser at an auction, the following is what you should know:

  1. No second notice is necessary if the 15-day possession notice under Rule 8(1) and (2) of the Security Interest (Enforcement) Rules, 2002 has already been served (by pasting and letter) and the period has elapsed — which in your case fell due on 19th March 2025.
  2. Because the Bank has now been granted a specific date (21st April 2025) by the District Magistrate under Section 14 of the SARFAESI Act, physical possession will be realized by the order of the DM, and no new notice is legally mandated to be affixed again.
  3. But for procedural transparency, banks occasionally voluntarily post a second intimation out of precaution — but it is not required by law if prior compliance is already finished.


Hope this helps you out, should you require any other explanations or difficulties, please just ask.

 

 

 

Anik Miu
Advocate, Bangalore
10558 Answers
123 Consultations

1. From your post it appears that the DM has issued Order under Section 14 of SARFESI Act, 2002 for taking actual physical possession of the mortgaged property for handing over to the Applicant Bank

 

2. In the instant matter it is the Order of the DM where copy will be marked to the mortgagor/borrower and it is not the duty of the Bank to paste it on the wall of the mortgaged property.

 

3. Actually the copy of the order is to be posted by the DM to all concerned including the owner of the mortgaged property.

Krishna Kishore Ganguly
Advocate, Kolkata
27570 Answers
726 Consultations

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