Borrower, son of the mortgagor, who died even before proceedings under SARFAESI Act, 2002 were initiated, has an interest in the property along with the other legal heirs of the deceased mortgagor – Dr. Mrs. Amita Verma Vs. The Authorized Officer, Indian Bank – Patna High Court

Hon’ble High Court held that the proprietor of the firm was the son of the guarantor who was no more. The proprietor of the firm had an interest in the property after the death of his father. We say this only to put the matter in the correct perspective and it is not as if the borrower, who had mortgaged the property of another, could not have filed the application before the DRT under Section-17(1). When the proceedings under the SARFAESI Act is taken, the borrower and the mortgagor are both parties interested in the proceedings. Merely because mortgagor has not been impleaded, it does not follow that the borrower cannot file an application under Section-17.

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