AI Overview...
-
Demand Notice under SARFAESI Act Section 13(2) - Must be served to both the mortgagor and the owner of the property, especially in cases involving apartments or leasehold rights. Proper service is essential to validate proceedings; failure to do so can lead to challenges against enforcement actions. Barigala Kotesh, S/o. Peturu VS Bandaru Yedukondalu, S/o. Venkateswarlu - Andhra Pradesh, Clarity Gold Pvt. Ltd. VS State Bank of India - Current Civil Cases
-
Service of Demand Notice - The notice must comply with the requirements of Section 13(2) and relevant rules. Valid service is crucial for the enforceability of subsequent actions like auction or recovery. Clarity Gold Pvt. Ltd. VS State Bank of India - Current Civil Cases
-
Validity of Demand Notice to Guarantors - For invoking guarantees or initiating insolvency proceedings, a proper demand notice must be issued to the guarantor. Without this, proceedings may be invalid. SANGITA NARULA VS RAVI KUMAR JAIN - National Company Law Tribunal, Ravi kumar jain VS Union Bank of India - National Company Law Tribunal
-
Specifics for Apartments and Leasehold Rights - In cases involving apartments, the demand notice should be delivered to both the owner and tenant or leaseholder, especially when their rights are affected by mortgage or securitization proceedings. IREO GRACE REALTECH PVT. LTD VS ABHISHEK KHANNA - Supreme Court, Nageshwar Rao VS Collector, Collector Office - Bombay
-
Legal Challenges and Exceptions - Certain cases, such as those involving agricultural land or exemptions under land reform laws, may not be subject to SARFAESI enforcement, but the demand notice's proper service remains a key factor. U. M. Ramesh Rao S/O. Late U. M. Krishna Rao VS Union Bank Of India (Formerly Corporation Bank) - Karnataka
Analysis and Conclusion:
Section 13(2) of the SARFAESI Act mandates that a demand notice must be served to all relevant parties, including owners of apartments or leaseholders, to ensure enforceability of security interest measures. Proper service to both owners and tenants is critical, especially in apartment complexes, to prevent legal challenges. Failure to serve the notice correctly can render subsequent enforcement actions invalid. The law emphasizes that demand notices must be issued to guarantors and all interested parties to uphold the validity of proceedings under the SARFAESI Act.
Search Results for "Sarfaesi Act Section 13 2 Requires Demand Notice to be Delivered to both Owners of the Apartment"
2021 0 Supreme(AP) 94 • India - Andhra Pradesh
B.KRISHNA MOHAN
(c) is contrary to terms of mortgage; or (d) is created after the issuance of notice of default and demand by the Bank under sub-section (2) of section 13 of the Act; and (ii) the Debt Recovery Tribunal is satisfied that tenancy right or leasehold ... after receipt of a notice under Section 13 (2) without the prior written consent of the secured creditor”. ... Obviously they could not do so, becau....
2010 0 Supreme(Mad) 4315 • India - Madras
ELIPE DHARMA RAO, D.HARIPARANTHAMAN
SARFAESI Act - Financial Institution - Section 13(2) - Section 13(4) - Section 17(2) - Section 45-I(f) of the Reserve Bank of ... ' under the SARFAESI Act. ... The first respondent Bank initiated proceedings under the SARFAESI Act to recover the dues, which were challenged by the petitioners ... No. 10318 of 2006, challenging the noti....
2025 Supreme(Online)(NCLT) 2870 • India - National Company Law Tribunal
(Paras 23-24) ... ... Issues: Was the demand notice to the personal guarantor valid and did the ... petition comply with Section 95 requirements? ... against a personal guarantor due to default by corporate debtor is maintainable, given that the petition lacks requisite invocation notice ... The first charge created by virtue of the personal loan was invoked by UBI and demand notice under Section 13(2) of the SARFAESI#HL....
2021 0 Supreme(SC) 12 • India - Supreme Court
D. Y. CHANDRACHUD, INDU MALHOTRA, INDIRA BANERJEE
Buyers; 2. ... Protection Act, 1986;(4) Whether on account of the inordinate delay in handing over possession, the Apartment Buyers were entitled ... Whether the terms of the Apartment Buyer's Agreement were one-sided, and the Apartment Buyers would not be bound by the same; 3. ... In the event the Allottee fails to accept and take the possession of the said Apartment within the time indicated in the said Notice of Possession, the Allottee shall be deemed to have beco....
2023 0 Supreme(Bom) 810 • India - Bombay
VINAY JOSHI, VRUSHALI V. JOSHI
under Section 13(4) or Section 14 of the SARFAESI Act. ... under Section 13(4) or Section 14 of the SARFAESI Act. ... aggrieved by the action taken under Section 13(4) or Section 14 of the SARFAESI Act. ... It has been ruled that if the lease is created prior to the mortgage creating secured asset, and a lease created after mo....
• India - Current Civil Cases
D.Y.CHANDRACHUD, ANOOP V.MOHTA
(i) Securitization and Reconstruction of Financial Asset and Enforcement of Security Interest Act, 2002—Section 13(2) —Demand Notice—Service ... was valid compliance with requirement of Section 13(2) and Rules in regard to the service of notice under Section 13(2). ... , 2002—Section 13(3A) —Disposal of Objection -Against #HL_....
2025 Supreme(Online)(NCLT) 2871 • India - National Company Law Tribunal
(Paras 20-24) ... ... (B) Invoking Guarantee - A demand notice for invoking a guarantee must ... ... ... Ratio Decidendi: The court ruled that an effective demand notice must be issued to invoke the guarantee, and without such ... notice, the insolvency application cannot proceed. ... The first charge created by virtue of the personal loan was invoked by UBI and demand notice under Section 13(2) of the #HL_STAR....
2021 0 Supreme(Kar) 124 • India - Karnataka
B.V.NAGARATHNA, NATARAJ RANGASWAMY
31(i) of SARFAESI Act and said Act does not apply to coffee plantation – expression 'agricultural land' in Section 31(i) of the ... , 2002 - Section 17 and 31(i) - Land Reforms Act - Section 2(A)(25) - Partnership firms - Credit facilities - Loan - Repayment - ... in Section 2(A)(25) of the Land Reforms Act Finding of the Court: there being an exemption ... Since, the writ petitioners did not rep....
2023 0 Supreme(Cal) 139 • India - Calcutta
TAPABRATA CHAKRABORTY, PARTHA SARATHI CHATTERJEE
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 - Section ... 13(2) – Loand – Default in payment – Auction Sale - Whether there are any encumbrances over property before putting up property ... under Section 13(4) of the SARFAESI Act issued by the AO, CB; 29th September, 2012 – Auction sale notice issued by AO, CB; 1st November, 2012 – Auction conducted; 22nd December, 2012 – #HL_....
2025 Supreme(Online)(NCLT) 2868 • India - National Company Law Tribunal
objections to the default and claims of the Petitioner were not substantiated, and hence, the validity of proceedings under the SARFAESI ... Act prior to filing remains intact. ... (A) Insolvency and Bankruptcy Code, 2016 - Section 95 - Initiation of Personal Insolvency Resolution Process against Personal Guarantor ... The first charge created by virtue of the personal loan was invoked by UBI and demand notice under Section 13(2) of the SAR....
Filter by Legal Phrase
