AI Overview...
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Demand Notice Requirements under SARFAESI Act - Section 13(2) mandates that secured creditors must serve a demand notice to the borrower, informing them of the default and demanding repayment. The borrower has 60 days from the notice to discharge liabilities. This requirement is crucial before proceeding with possession or sale of the secured asset Hemabushan VS ICICI Bank Limited - Madras, K. J. Binu VS Secretary, Nedumangad Municipality - Kerala, Rajkumar VS Mahesh Kumar - Madras.
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Service of Notice to Both Property Owners - It is essential that the demand notice under Section 13(2) is served not only to the borrower but also to all property owners or mortgagors involved. Proper service ensures the validity of subsequent proceedings, including possession and auction, and upholds the rights of all parties involved Hemabushan VS ICICI Bank Limited - Madras, K.J.BINU Vs THE SECRETARY, NEDUMANGAD MUNICIPALITY - Kerala, KASTURI COMMODITY PVT. LTD. VS CHIEF MANAGER, UNION BANK OF INDIA - Gujarat.
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Legal Validity and Court Interpretations - Courts have upheld the necessity of serving notices to all relevant property owners before initiating proceedings under SARFAESI. Non-compliance, such as failure to publish notices or serve all owners, can render actions invalid or subject to challenge. Courts have also clarified that the right of redemption is extinguished post-auction, but prior notices are fundamental to due process THE CATHOLIC SYRIAN BANK LTD vs M/S ORMA MARBLE WORLD - Kerala, Celir LLP VS Bafna Motors (Mumbai) Pvt. Ltd. - Supreme Court.
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Special Cases and Injunctions - In certain cases, courts have issued injunctions or maintained peace orders under Section 145 of Cr.P.C. to prevent interference with property during SARFAESI proceedings, emphasizing the importance of serving notices and following due process before taking possession Infovision Private Limited, V. Rajkumar, Rep. by its Power of Attorney, D. Gopi Chandran VS Inspector of Police, St. Thomas Mount Police Station - Madras.
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Conclusion - As per Section 13(2) of SARFAESI, demand notices must be served to all property owners involved to ensure lawful proceedings. Proper service of notices is a prerequisite for valid possession and sale actions, and courts consistently emphasize adherence to these requirements to protect the rights of borrowers and property owners.
References: - SARFAESI Act Sections 13(2), 13(4), 14, 17 - Judicial interpretations and rulings from various courts emphasizing service requirements and due process.
Search Results for "Demand Notice as Per Sec 13 2 of Sarfaesi Needs to be Served to both Property Owners"
2010 0 Supreme(Mad) 4313 • India - Madras
B.RAJENDRAN, R.BANUMATHI
SARFAESI Act - Writ Petition - Sec.13(2), 13(3-A), 13(4), 14 and 17 - The court discussed the provisions of Secs.13(2), 13(3-A ... ), 13 (4), 14 and 17 of SARFAESI Act. ... The court highlighted the borrower's obligation to discharge liabilities within 60 days of notice under Sec.13(2), the secured creditor's ... By exercising....
2020 Supreme(Online)(KER) 13767 • India - High Court of Kerala
S.MANIKUMAR, CJ, SHAJI P.CHALY, J
demand notice requirements for creditors before taking possession or selling secured assets. ... of Security Interest Act, 2002", "sections":["13(1)","13(2)","13(4)","13(8)","13(10)"]} - The court upheld the validity of ownership ... and the prior notice of auction published by the secured creditor. ... The scheme of Sub-sections (2), (3) and (3-A) of Section 13 of NPA Act shows that the #HL_START....
2021 0 Supreme(Guj) 877 • India - Gujarat
BHARGAV D.KARIA
of Security Interest Act, 2002 – Section 13(2), 3(4),14 and 17 - Fixed deposit - Pursuant to availing of a credit facility with ... pay an amount - This amount is apparent from the notice of the bank to take possession of assets of the petitioner - It appears ... Constitution of India,1950 – Article 226 - Securitization and Reconstruction of Financial Assets and Enforcement ... Act, 2002 (for short ‘the SARFAESI Act’) was served upon the petitioners and thereafter the application under....
2010 0 Supreme(Mad) 1965 • India - Madras
M.JAICHANDREN
Injunction - Property Dispute - Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act ... respondent filed a suit seeking a permanent injunction restraining the defendants from interfering with the possession of the suit property ... served upon them before proceeding to take measures under sub-sec. (4) of S. 13. ... Under sub-section (2) of S.13 it is incumbent upon the secured creditor to serve 60 days #HL_S....
2020 0 Supreme(Ker) 667 • India - Kerala
S.MANIKUMAR, SHAJI P.CHALY
SARFAESI Act, 2002-For recovery of the amount due to the bank, and by mere publication of an auction notice, right of the owner ... lost his status as the owner of the property. ... to redeem the property is not lost- Merely because there is a charge on the property, it cannot be contended that the borrower has ... The scheme of Sub-sections (2), (3) and (3-A) of Section 13 of NPA Act shows that the notice under Se....
2012 0 Supreme(Mad) 2763 • India - Madras
C.S.KARNAN
The order was made purely to maintain peace and ensure that law and order prevails over the said property. ... The order was made purely to maintain peace and ensure that law and order prevails over the said property. ... The said order was passed under Section 145 of Cr.P.C., to maintain peace over the property situated in Survey No.16/7 of Alandur ... In January 2005, Indian Bank initiated proceedings against the mortgaged properties (120 grounds) under the SARFAESI ACT by publishing a "Demand #HL_STA....
2018 Supreme(Online)(KER) 42030 • India - High Court of Kerala
DAMA SESHADRI NAIDU, J
SARFAESI - Recovery Proceedings - SARFAESI Act - Sections 14, 17 - The court interpreted Section 14 of the SARFAESI Act to conclude ... assets under Section 14 of the SARFAESI Act. ... Final Decision: The court allowed the writ petition, setting aside the CJM's order requiring prior notice. ... as required by the provisions of sub-section (2) of section 13, demanding payment of the defaulted financial assistance has been served on the borrower; (vi....
2007 0 Supreme(AP) 1215 • India - Andhra Pradesh
P.S.NARAYANA
, 14 – Notice – Possession of Land – W .P. is filed praying for a Writ of Mandamus declaring action of A.P. ... insofar as it concerns the petitioners property and pass such other suitable orders – Held, writ petitioners are not entitled to ... Metropolitan Magistrate passed in CrI.M.P. appointing an Advocate Commissioner to take over possession of the petition schedule property ... is not published in the Newspapers as required under Rule 8(2) of the said Act, but, however, the Debts Recovery Tribunal made it clear that....
2023 0 Supreme(SC) 977 • India - Supreme Court
D. Y. CHANDRACHUD, J. B. PARDIWALA
upon the publication of auction notice under the amended Section 13(8) of the SARFAESI Act. ... In the case regarding the applicability of Section 13(8) of the SARFAESI Act, the Supreme Court reviewed the rights of redemption ... While Court upheld the right of the auction purchaser, it ruled that the mortgagor's right to redeem the property is extinguished ... In the meantime, the borrowers preferred a Securitization Application being SA No. 46 of 2022 before the Debt Recovery Tribuna....
2021 0 Supreme(Bom) 63 • India - Bombay
SUNIL B.SHUKRE, AVINASH G.GHAROTE
and 17 of the SARFAESI Act, is exclusive - In all cases, where the title to the property, in respect of which a 'security interest ... (4) – Civil Procedure Code, 1908 – O. 7 Rule 11 - Hindu Joint Family property – Recovery of Debt – Mortgage of property - Action ... plaintiffs, who were members of the HUF - Bar under Section 34 applies in respect of a matter which can be determined under the SARFAESI ... The State Bank of India was joined as defendant for the reason that it had issued a not....
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