• Attaching properties of minor - sarfaesi act

Party Mr.A took a loan from bank for running his two industries. 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 in the year 2010. 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. 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?

(3) The first unit of Mr. A was sold in  april of 2012 and the second unit was sold on the december of 2012. I also need to know whether there is any limitation period for the sarfaesi act. And are there chances for bank to attach personal assets now(the bank has not gone for any suits till date).
Asked 3 years ago in Business Law from Coimbatore, Tamil Nadu
repeated query
Ajay Sethi
Advocate, Mumbai
26204 Answers
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1) No the said properties are not mortgaged to bank . it can be disposed of 

2) No   bank cannot claim the property gifted to her grand son 

3) as on date bank has not taken any legal proceedings . no notice has been issued .dont panic . consult a local lawyer . apply  to bank under OTS
Ajay Sethi
Advocate, Mumbai
26204 Answers
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if no action taken by bank for 3 years claim of bank would be barred by limitation . Rs 2.5 crores is substantial sum of money . bank must be having some blank letters signed by you . they may fill in details and take legal proceedings    to bring claim within limitation period f or balance amount .
Ajay Sethi
Advocate, Mumbai
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keep a low profile . bank may write off loan  as per report of detective agency .
Ajay Sethi
Advocate, Mumbai
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1425 Consultations
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sell the land . dont keep any assets .
Ajay Sethi
Advocate, Mumbai
26204 Answers
1425 Consultations
5.0 on 5.0

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