• Challenging the Sarfaesi Act applicability to Multi State Co-op Banks

We have purchased a Auction property from NKGSB Bank the borrower has filed a case stating that State Co-op. Banks cannot apply SARFAESI Act and has therefore challenged the sale in Bombay High Court, and the Court has admitted the case on the basis that a case is pending in the Supreme Court as to whether State Co-operative Banks can apply the SARFAESI Act or no, and as per my Adv. the it is also challenged whether the State or Central Govt. has to make the amendments, and has been referred to a larger bench and was last heard in 2016, the case refer to Greater Bombay which is mentioned by the petitioner in our case. And now since we are in the process of getting our Mutation done and have to get my name on State Land records the local authority is asking us to wait for the matter to be disposed off now under this circumstances we are stuck unless the Apex Court decides on the above matter. Kindly provide any remedy or legal advice.
Asked 4 years ago in Property Law
Religion: Hindu

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7 Answers

Hi,

Pending decision of larger bench or supreme court, the case has to be decided on existing law and it can't wait for that pending decision.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

1) Unless un until principal debtors problem won't get solve with the bank, how the owner will transfer the property on your name.

Try to take clear property from bank, put all pressure on bank now.

If you require further assistance can call me.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

1. Multi State Co-Operative Banks are entitled to initiate SARFAESI Action against their defaulting Borrowers.

2. However, since the said entitlement has been challenged and the matter is now pending before the Apex Court, the said Co-Operative Bank should have notified that the said sale subject to the outcome of the case pending before tghe Supreme Court.

3. In absence of the said notiofication, you are entitled to seek cancellation of the said sale certificate and get refund of the amount paid by you with interest.

4. If the said Bank refuses to refund the amount, file a Writ Petition before the High Court praying for an order upopn the said Banki to refund the amount paid by you with interest within a fixed period of time.

5. It will be a good case to win.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

Mutation of property cannot be done in your name pending hearing and final disposal of the case

2) you have to wait till disposal of the case

Ajay Sethi
Advocate, Mumbai
87932 Answers
6207 Consultations

5.0 on 5.0

When the authority is suspended all such transfer activities citing the pendency of the related matter before supreme court, you cannot help than wait for the improvement of the situation.

Moreover the borrower has moved high court and the same is pending disposal on the basis of the a related case pending before supreme court, you may not get any relief till the same is disposed.

You have no option than to wait, since you have a registered sale deed on your name, dont be so much concerned about the transfer of revenue records, because they do not constitute the title to the property.

T Kalaiselvan
Advocate, Vellore
78089 Answers
1543 Consultations

5.0 on 5.0

in the case pending before the Apex Court, no stay has been given, i assume

in absence of a stay, the land record authority cannot refuse to mutate your name

at the highest what can be done is that your name can be entered in the records with a remark that the entry of your name is subject to final outcome of decision of SC in the pending case before it

in the event the decision is favourable the remark will become redundant and of no consequence

in the event the decision is adverse then the land record authority will be at liberty to delete your name from the records as per the directives of the Apex Court

above is possible and i do not see any difficult for the land record authority to proceed as such on your request for mutation

if the land record authority refuses then request them to give that in writing

you can then make an application to the Bombay High Court in the pending case of the borrower seeking directions to the authority to enter your name in the records in absence of stay granted by Apex Court

Yusuf Rampurawala
Advocate, Mumbai
6881 Answers
79 Consultations

5.0 on 5.0

Dear Client,

Mutation dose not make absolute owner but the registered sale deed, either you can challenge the local authority`s refusal order or can wait. No loss to you.

If mutation effected now and later adverse judgment by SC, mutation will left invalid, so enjoy possession.

Till matter is pending before larger bench, no subordinate court can interfere with the issue.

Rest you can seek interim stay in your favor from court.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

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