• 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 2 years ago in Business Law from Coimbatore, Tamil Nadu
repeated query
Ajay Sethi
Advocate, Mumbai
23279 Answers
1219 Consultations
5.0 on 5.0
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
23279 Answers
1219 Consultations
5.0 on 5.0
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
23279 Answers
1219 Consultations
5.0 on 5.0
keep a low profile . bank may write off loan  as per report of detective agency .
Ajay Sethi
Advocate, Mumbai
23279 Answers
1219 Consultations
5.0 on 5.0
sell the land . dont keep any assets .
Ajay Sethi
Advocate, Mumbai
23279 Answers
1219 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Business Lawyers

T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23279 Answers
1219 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0
Devajyoti Barman
Advocate, Kolkata
5222 Answers
54 Consultations
4.9 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3534 Answers
130 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2752 Answers
41 Consultations
4.9 on 5.0
Lakshmi Kanth
Advocate, Hyderabad
223 Answers
2 Consultations
4.8 on 5.0
Shashidhar S. Sastry
Advocate, Bangalore
1242 Answers
59 Consultations
5.0 on 5.0