• Bank taking possession under section 14 for property which is on lease by borrower

I have a property on rent where I have installed my cement brick plant .It's a partnership firm with rent agreement dated 22.2.2018 for a period of 3 years . My landlord already had loan on property which we were unaware of.He didn't paid the loan and bank has now taken symbolic possession under section 13/4 .They gave demand notice to landlord on 31.3.2018 . Now three days back on our premise they have a fixed order of ADM for taking possession of property under section 14 of SARFAESI ACT .

We are ready to give possession but need minimum 6 months time to shift from here moreover we have registered lease agreement also till 22.2.2021 with borrower who happens to be our landlord also.

What remedy we have ?
Can we take stay from local deewani court for action of bank ?
We will.suffer huge loss if bank will take possession of property as there are machinery installed that are difficult to move immediately ..Bank is not allowing us any time and they r going to take possession of assets on Friday itself with help of police.what options we have ?

Can we get 6 months time from court to vacate the premise ?
Asked 3 years ago in Civil Law

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11 Answers

Ask your owner to reply to bank as per section 17, so you can get atleast 6 months in your hand till bank gets full possession for auction the property.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

Bank can't evict tenants of loan defaulters,the Supreme Court has held that tenant cannot be evicted by the banks to make good the loan left unpaid by the landlord. 

Mohammed Mujeeb
Advocate, Hyderabad
19029 Answers
32 Consultations

4.5 on 5.0

You have to file a suit for temporary injunction for stay on vacation notice from bank till you find another premises to install your cement plant. 

Yes you can take stay from local civil court.

 

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

You need to go before DRT court for the same or under writ petition before HC

Bank will not allow you time it's a stringent Act. Only court can give you remedy

Prashant Nayak
Advocate, Mumbai
27232 Answers
88 Consultations

4.4 on 5.0

File application before DRT and seek stay against bank taking possession 

 

2) take plea that you have installed expensive machinery and you ha e valid leave and licence agreement 

 

3) you should get stay from DRT 

Ajay Sethi
Advocate, Mumbai
87899 Answers
6207 Consultations

5.0 on 5.0

See you can file an application before DRT seeking stay on order of possession as third party rights are there. 

See file application seek stay pending the application from DRT . 

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. In SARFAESI matters the civil or rent court has jurisdiction.

2. Your only remedy was before the ADM when proceeding under section 14 of SARFAESI As=ct was pending.

3 Now it is too late if the psychical possession is directed to be handed over.

4. If not then seek time before the ADM for six months before police comes and vacates the premises.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

1. You can not take a stay from the deewani court, you will have to approach the DRT. 

2. You can file a case against the land lord and can claim compensation. 

3. Immediately move to DRT. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

- As per the Surpreme Court , A tenant cannot be evicted by the Banks to make good the loan left unpaid by the landlord.

- Further, If any tenant claim that he is entitled to possession of a secured asset for a term of more than a year, it has to be supported by a registered lease document. 

- If a valid tenancy under law is in existence even prior to the creation of the mortgage, the tenant's possession cannot be disturbed.

- Since you have already registered lease deed for three years, ie. before the demand notice of the bank , then your possession cannot be disturbed in the event of default by the landlord.

- You should sue the landlord for breach of the lease deed , after making the bank as party as well.

- Civil Suit Not Maintainable after SARFAESI Proceedings Are Initiated.

-  Chief Judicial Magistrate is authorized by law to act under the provisions of Section 14 of the SARFAESI Act.

- Without any further delay, you should file your petition before the CJM , for the direction to stop the proceeding of possession from you. 

- Sure, you will get relief , if you will mention all the facts as mentioned above , and your critical position. 

- Your case is good for getting relief from the court.


Good luck and dont forget to rating Positively.

 

Mohammed Shahzad
Advocate, Delhi
9872 Answers
121 Consultations

5.0 on 5.0

You cannot be force to vacate the property even after possession notice by ADM. Court orders mandatory, refuse to vacate.

For any forcefull action, obtain stay from court, confirm stay will grant and you will get more than a year.

Approach court without wait.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

You can file a petition  before DRT seeking injunction against the proposed takeover of the bank based on the registered leas agreement, you may be permitted to remain till the expiration of your registered lease agreement period.

What is deewani court, you may have to approach DRT for relief or remedy.

You have to rush to court to get a stay order against the proposed takeover  of the property by the bank and get it stopped.

 

T Kalaiselvan
Advocate, Vellore
78057 Answers
1543 Consultations

5.0 on 5.0

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