1. It escaped my attention that the MD expired before the date of the DM's order. However, it did not change the situation since as per SARFAESI Act and several Judgements, it is not mandatory on the part of the DM to hear the mortgagor being he MD herein while dealing with Sec 14 Application,
2. It is not clear whether the application u/s14 of the SARFAESI Act was filed before the DM against which he had issued order for taking physical possession of the property with police help or it was attachment order passed against some other Act,
3.If the order was issued against application filed u/s14 of the ACT when he Bank was not aware of the demise of the MD, then the said order is perfectly in order,
4. The legal heirs of he MD should now file an application before he DRT for substituting their names in place of the demised MD,
5. The Bank won't have to start its SARFAESI Proceeding afresh.since all the notices issued by the Bank were issued to the MD when he was alive for which he has already filed SARFAESI Application before the DRT,
6. In one such case when my client Bank had filed Original Application under RDDBFI Act, it was found that the addressee of the recall letter issued by the Bank had expired before it was issued which the Bank was not informed by his legal heirs. The DRT, Kolkata refused to reject the O.A. for issuing recall notice to a dead person on the plea that Bank was not made aware by the legal heirs of the said demised Borrower and also that when the legal heirs of the dead Borrower received the said recall letter, they should have reacted to it either by paying or by informing the Bank about the death of the Borrower,
7. So, the above citation is not exactly applicable in the instant case since all he SARFAESI Notices were issued by the Bank to the said MD when he was alive. In the case of S.Suhaina Banu vs Indian Bank the Guarantor expired after receiving the 13(2) notice but within the 60 days period when she was called upon to pay the demanded amount. Hence, the SARFAESI proceeding initiated by Indian Bank was issued (or was called upon to act within a specified period when she died) to a dead person which is liable to be set aside.