• 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 3 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
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
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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
Ajay Sethi
Advocate, Mumbai
27362 Answers
1487 Consultations
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The properties are transferred only to avoid the recovery by bank. Hence the bank can attach all such properties of the borrower.
Sai Kiran R
Advocate, Bangalore
86 Answers
6 Consultations
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in this case the property can not be attached .
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
the said properties cannot be attached
Ajay Sethi
Advocate, Mumbai
27362 Answers
1487 Consultations
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Mr.A has ceased to be the owner of these properties. So they cannot be attached now.
Ashish Davessar
Advocate, Jaipur
19611 Answers
507 Consultations
5.0 on 5.0

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