Back
VAIBHAVI D. NANAVATI
Norton Industries Through Pravinbhai M Bane – Appellant
Versus
Punjab National Bank Through Authorised Officer – Respondent
JUDGMENT :
1. Heard Mr. Dashrath Chauhan, the learned advocate appearing for the petitioner, Mr. Lalit M. Patel, the learned advocate appearing for the respondent No.1 and Mr. Vijay H. Patel, the learned advocate appearing for the respondent No.2.
2. The petitioner herein is a borrower. The respondent No.1 having sanctioned the cash credit facility to the petitioner for an amount of Rs.3,00,000/- in the year 1997. Upon execution of the security documents the respondent Bank disbursed the said credit facility. The petitioner herein made the payment regularly to the respondent Bank but after sometime due to loss in business and unavoidable circumstances the petitioner was not in position to make payment regularly to the respondent Bank. In view thereof, the respondent No.1 classified the account of the petitioner as Non Performing Assets (NPA) on 30.3.2003.
2.1 Notice under Section 13(2) of the SARFAESI Act came to be issued by the respondent No.1 to the petitioner on 20.11.2003 demanding outstanding amount of Rs.4,06,242.96.
2.2 It is the case of the petitioner that the said notice was never served to the petitioner. After a period of 07 years the respondent No.1 issued possession notic
The court established that the right of redemption under the SARFAESI Act is extinguished upon the issuance of a sale certificate, and timely challenge to bank actions is essential.
The borrower's right of redemption is extinguished upon the publication of the auction notice, allowing the auction purchaser to claim possession.
Failure to comply with the provisions of Section 13(8) of the SARFAESI Act, 2002 and the availability of an alternative remedy before the Debts Recovery Tribunal rendered the writ petition not mainta....
Court ruled that non-compliance with SARFAESI rules voided sale; observed that the rights of borrowers can be waived through their conduct and failure to assert them timely.
Point of Law - Rule 15 of Schedule II Part I of the Income Tax Act, 1961, in the first place it will have to be stated that a reading of the said Rule does not in any way conflict with either Section....
Mandatory compliance with procedural requirements under the SARFAESI Act is essential; failure to adhere prejudices borrowers' rights and invalidates auction proceedings.
The right to redeem mortgaged property under the SARFAESI Act is extinguished once the auction notice is published, indicating no entitlement to challenge the sale thereafter.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
