Guaranteer property e auction sold out.
8 months ago
As an Guaranteer of brother loan 8cr. from indian bank. My property also attached. In e action they sold my property nearly 3cr. It worth more then that. Is it possible get my property back by paying 3cr or is it possible to cancel the e auction.
A.Dear Client,
you are already late opting for any remedy to get back your auctioned property. A remedy to get back your property was available before the auction under SRFASI Act, 2002. Section 13(3A) of said Act, primarily lays down that any security interest created in favour of a secured creditor is enforceable without the intervention of any court or tribunal. As per sub-section (2) a creditor is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt and debt is classified by the secured creditor as non-performing asset(NPA). If the borrower fails to discharge his liability despite the service of notice, the creditor is free to recover the debt through the modes prescribed in sub-section (4) such as – taking over possession of the secured assets of the borrower, Thus, the Borrower/Guarantor is given an opportunity Section 13(3A) of said Act to make representation or raise an objection with respect to the notice issued under subsection (2). A further duty is imposed on the creditor to consider such representation/objection and if the creditor concludes that such representation or objection is meritless, he shall communicate within fifteen days of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower. It was held by the Supreme Court and other High Courts that the provisions of Section 13(3A) of the SARFAESI Act are mandatory and it is necessary for the lender to consider the representation/objection made by the borrower in response to the notice issued under Section 13(2) of the SARFAESI Act. The Delhi High Court observed that the intention of the Legislature in introducing sub-section (3A) is to ensure that objection/representation of a borrower against any action for enforcement of security interest is considered before a creditor proceeds to take possession of the secured assets in terms of Section 13(4) of the SARFAESI Act and sold it through auction for recovery of debt from the defaulter Borrower/Guarantor. So, losing such an opportunity or scope provided under the Act to stall the auction for selling the secured Asset/Property, you have no other way to get the property back now.
you are already late opting for any remedy to get back your auctioned property. A remedy to get back your property was available before the auction under SRFASI Act, 2002. Section 13(3A) of said Act, primarily lays down that any security interest created in favour of a secured creditor is enforceable without the intervention of any court or tribunal. As per sub-section (2) a creditor is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt and debt is classified by the secured creditor as non-performing asset(NPA). If the borrower fails to discharge his liability despite the service of notice, the creditor is free to recover the debt through the modes prescribed in sub-section (4) such as – taking over possession of the secured assets of the borrower, Thus, the Borrower/Guarantor is given an opportunity Section 13(3A) of said Act to make representation or raise an objection with respect to the notice issued under subsection (2). A further duty is imposed on the creditor to consider such representation/objection and if the creditor concludes that such representation or objection is meritless, he shall communicate within fifteen days of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower. It was held by the Supreme Court and other High Courts that the provisions of Section 13(3A) of the SARFAESI Act are mandatory and it is necessary for the lender to consider the representation/objection made by the borrower in response to the notice issued under Section 13(2) of the SARFAESI Act. The Delhi High Court observed that the intention of the Legislature in introducing sub-section (3A) is to ensure that objection/representation of a borrower against any action for enforcement of security interest is considered before a creditor proceeds to take possession of the secured assets in terms of Section 13(4) of the SARFAESI Act and sold it through auction for recovery of debt from the defaulter Borrower/Guarantor. So, losing such an opportunity or scope provided under the Act to stall the auction for selling the secured Asset/Property, you have no other way to get the property back now.
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A.Dear client,
There is no way you can get the property back after it has been auctioned except if you can prove that the auction was not held in accordance with the law.
There is no way you can get the property back after it has been auctioned except if you can prove that the auction was not held in accordance with the law.
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