Attaching properties of minor - sarfaesi act
Party Mr.A took a loan from bank for business. Mr.A mortgaged properties to the bank. Mrs.A and Mr.B (son of Mr.A) also were co-borrowers. Business tanked and court attached properties that were mortgaged. Two scenarios below..
(1)Mr.A had some properties that he did not mortgage to the Bank. Before being declared NPA, Mr.A transferred those properties to his Daughter Ms.C. Can bank attach these properties post declaration of NPA
(2) Mrs.A (co-borrower) inherited a property from her father after. This was done while bank was trying to take over the properties. At that time, Mrs.A inherited a new property. She immediately transferred the property to her minor grandson. Can bank stake claim on this property?
Asked 4 years ago in Business Law from Bangalore, Karnataka
if there is any dues from your side towards bank ,then all those be recovered from your properties ,as you can see sahara chairman is behind bars for his outstanding of 20000 cr to the public
Advocate, New Delhi
1) since MR A is no longer owner of the properties bank cant attach these properties . i presume all legal formalities were completed for transfer of properties
2) bank cannot claim properties transferred in name of minor grand son
The properties are transferred only to avoid the recovery by bank. Hence the bank can attach all such properties of the borrower.
Follow Question to Mr.Sai Kiran: Thank you for your response. The property transferred to Mr.A's daughter (which was not mortgaged with the bank) happened before Sarfaesi i notice was issued and it was done as a family settlement action (this was done at a time Mr.A was paying all loan payments properly). Does the bank have the right to attach those properties as well. If so, how far in the past can bank go and attach properties ? Thanks much.
Asked 4 years ago
in this case the property can not be attached .
Advocate, New Delhi
the said properties cannot be attached
Mr.A has ceased to be the owner of these properties. So they cannot be attached now.