• Ad interim stay made permanent, is binding on DM or collector u/s 14 Sarfaesi

A property was mortgage in 2000 and attached in 2003 by a co-op bank, I was a tenant for 3 yrs since 1996, in 2010 i settled with the bank and paid half of the consideration and filed a suit for specific performance and got an ad interim injunction "not to dispossess me without due process of court" which was made permanent in 2015 to stop the auction of the suit property by the said bank and the matter is pending.(under MCS act 101 award)
now in 2018 a new coop bank comes to chase the property who advanced personal loan in 2009 and got a recovery certificate in 2011 (MCS act 101) and gets an order in 2018 u/s14 of SRFAESI for possession of the suit property.(remember property is already mortgaged)
i have already filed my objection, as the new bank is not a party to my suit can the stay be applicable to them?
Question:-
Is the order of injunction applicable to the collector when though not a party to the civil suit, if yes please provide case laws or supporting reference.
What can be done in this case?
Asked 7 years ago in Property Law
Religion: Christian

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6 Answers

See injunction is against the respondents in your suit if the bank is not respondent to the suit file an application to join them as necessary party and seek stay against them also.

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

It will be applicable to all even if they are not parties. it is the duty of the new party to vacate that injunction order from the said court. if yo receive notice you can produce the copy of the said order.The new party seeking vacation has to satisfy the court the reasons and requirements to vacate the said injunction order

Prashant Nayak
Advocate, Mumbai
34633 Answers
249 Consultations

Stay would not be spplicabke to new bank 

 

2) auction by particular bank is only stayed 

 

3) order not applicable to collector 

Ajay Sethi
Advocate, Mumbai
99934 Answers
8158 Consultations

interim order is applicable for first bank 

you can file an application with DRT against the new bank to not coercive steps against you for dispossessing you

if collector is acting at instance of first bank then injunction is applicable to him as well

if collector is acting at instance of new bank then injunction is not applicable

Yusuf Rampurawala
Advocate, Mumbai
7913 Answers
79 Consultations

Dear Cleint,

Being tenant what was the need to make payment, further on auction of property, rights of tenant dose not effect. Is there any status quo order or stay order. Is status quo than biding on collector to property under court  protection.

Challenge the notice of possession before DRT, to get stay on the basis of civil court order or file impleadment application in same suit to make another bank party and till summon return - ad interim stay.

Yogendra Singh Rajawat
Advocate, Jaipur
23085 Answers
31 Consultations

The new bank has to be impleaded as a party to the pending suit.

Why should the collector to be made asd a party, also the injunction order is not against the collector but against the previous bank alone.

The solution is that the new bank which has advanced the loan has to be roped in as a party to the suit and on the basis of injunction order against the previous bank, an injunction against this bank also to be sought or to file a writ petition to set aside the orders passed by district magistrate under section 14 of sarfesi act on the grounds that there exists an order of injunction which was made absolute by the lower court on the same subject.

T Kalaiselvan
Advocate, Vellore
90135 Answers
2504 Consultations

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