23/12/2022

Whether a Bank is entitled to seek eviction of tenants from a Secured Asset taken over by the Bank for sale for realising its dues – Mr. Mohan Sundaram Vs. Punjab National Bank – Kerala High Court

The question is as to the locus standi of the Bank to institute the application for eviction as a landlord. Hon’ble High Court held that a reading of the Section 13(4) and 13(5) of the SARFAESI Act would indicate beyond doubt that a secured creditor in terms of the said provision is empowered to do all that is possible for realising the secured asset. If that be so, it cannot be said that a secured creditor is not empowered to initiate proceedings for eviction of a tenant from a secured asset as part of the secured creditor’s right to realise the same.

Whether a Bank is entitled to seek eviction of tenants from a Secured Asset taken over by the Bank for sale for realising its dues – Mr. Mohan Sundaram Vs. Punjab National Bank – Kerala High Court Read Post »

In case if sale consideration has not been deposited and the purchaser has been found to be in default, the property shall be sold again as has been referred under Rule 9 of the Security Interest (Enforcement) Rules, 2002 – Raj Kumari Kanoi Vs. Chairman-cum-Managing Director, Allahabad Bank and Ors. – Jharkhand High Court

Hon’ble High Court observed that it is the specific case of the Bank that as yet the physical possession of the property is not with the Bank and at present the total bank dues outstanding in the said NPA account is amounting to Rs.10,68,964/-. This Court has posed a pin pointed question upon the Bank that when there is a law to be followed then why the Bank has not followed the Rule which mandates that in case if the amount has not been deposited and the purchaser has been found to be in default, the property shall be sold again as has been referred under sub-rule (3) of Rule 9 of the Rules, 2002 coupled with the provision made under sub-rule (5) thereof. This Court, therefore, wants some answer from the higher authority at least of the rank of General Manager of the concerned Bank that what action is being taken against the erring officials after conducting an enquiry by casting liability so that said instance may not be repeated in future and the very object and aim of the Act, 2002 be achieved in strict sense.

In case if sale consideration has not been deposited and the purchaser has been found to be in default, the property shall be sold again as has been referred under Rule 9 of the Security Interest (Enforcement) Rules, 2002 – Raj Kumari Kanoi Vs. Chairman-cum-Managing Director, Allahabad Bank and Ors. – Jharkhand High Court Read Post »

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