1. The lending Bank can enforce right on the said mortgaged properties within 12 years from the date of its mortgage. It may be that the Bank had already taken blank letters signed by the mortgagor for renewing the mortgage and in that case the Bank can put a recent date and take possession of the said property.

2. The Company can not  claim back the title documents. The Financial Institution won't be able to enforce its right on the said mortgaged property.

1. Yes lender can sell the assets taken under SURFAESI act even after 20 years once the symbolic possession is taken by them. 

2. Company can give it a try and file a suit before debt recovery Tribunal(DRT) to take back possession of the assets.

A mortgage is a security interest in real property held by a lender as a security for a debt, usually a loan of money. A mortgage in itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be returned to the owner when the terms of the mortgage have been satisfied or performed. In other words, the mortgage is a security for the loan that the lender makes to the borrower.

In a mortgage by legal charge or technically "a charge by deed expressed to be by way of legal mortgage", the debtor remains the legal owner of the property, but the creditor gains sufficient rights over it to enable them to enforce their security, such as a right to take possession of the property or sell it.

In most jurisdictions, a lender may foreclose on the mortgaged property if certain conditions—principally, non-payment of the mortgage loan – apply. Subject to local legal requirements, the property may then be sold. Any amounts received from the sale (net of costs) are applied to the original debt.

Right of mortgagor to redeem:-

At any time after the principal money has become due, the mortgagor has a right, on payment or tender, at a proper time and place, of the mortgage-money, to require the mortgagee (a) to deliver to the mortgagor the mortgage-deed and all documents relating to the mortgaged property which are in the possession or power of the mortgagee, (b) where the mortgagee is in possession of the mortgaged property, to deliver possession thereof to the mortgagor, and (c) at the cost of the mortgagor either to re-transfer the mortgaged property to him or to such third person as he may direct, or to execute and (where the mortgage has been effected by a registered instrument) to have registered an acknowledgement in writing that any right in derogation of his interest transferred to the mortgagee has been extinguished:

PROVIDED that the right conferred by this section has not been extinguished by the act of the parties or by decree of a court.

As per the provisions of the Limitation Act, 1963, the time limit prescribed to institute a suit for possession for enforcing a right relating to an immovable property is 12 years.

If you still feel that you would like to retrieve the proeprty  for the aid reason you can file  suit under section 34 of specific relief act.

Yes. 

1. Once the Lender has "duly" taken over the mortgaged assets with proper written consent of the Co., THEN legally the Action is complete and Law of Limitation is not applicable and neither the Co. is entitled to raise its objections, to the exception of challenging the Lenders action in court in 1999, and seek appropriate directions (to return property after repaying loan).

2. HOWEVER, now you can create an fresh environment for litigation by initiating correspondence on the issues (making 1% payment and putting claims on property with undertaking to pay the rest after inspection for damages etc....). This will set ground for litigation, stay order etc....

The lender can file a suit for recovery of funds and if those are not recovered or cannot recovered then and only the lender can pray to the court for possession of the property or to recover their funds by selling the attachment (property itself).

12 years limitation from date of cause of action.

Documents may not recover but title is secure.

How did the lending financial institution take possession of mortgaged property? Was it pursuant to a court order? In any case, there has been inordinate delay on its part in disposing of the property and appropriating the proceeds towards its dues from the company. There is no bar of limitation. While the value of the building would have depreciated, land value would have increased many fold, meanwhile. Machinery may be of scrap value. However, the lender may be held liable for financial loss, if any.

1. State Financial Corporation, is a statutory body and there is no compulsion to inform any authorities, AFTER putting its seal on the possessed assets.

2. Once possession is "duly" taken over by State Financial Corporation, there is nothing left to be done by other authorities and even IF somebody transacts (in anyway) on such property, THEN such transaction shall be legally infructuous and null & void, in limine.

Keep Smiling .... Hemant Agarwal
VISIT:

1. Even though the said procedures have not been followed by SIPCOT,  what made the company to not to dispute the taking over possession of the company SIPCOT, especially all these years, i.e., almost 20 years?

May be the company's claim at this stage not be entertained 

2. The company had slept over the matter for almost two decades or more, hence whether any claim would be maintainable or not will be decided by court.

You can challenge the possession in court and seek sale deed from court

1. SIPCOT hss taken possession of the said mortgaged property understandably as per SARFAESI Act, 2002 which is absolutely lawful.

2. The defaulter company can not claim back documents of the properties it has mortgaged, rom the lending Institution without repaying the loan.

The possession of assets taken by Sipcot is valid in law. However, the company may contest that it suffers financial loss by way of accruing interest on account of the inordinate delay in sale of the mortgaged assets by Sipcot.