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Jawahar Singh and Ors. v. The United Bank of India and Ors. - (High Court of Calcutta) (06 Aug 2015)

No right of representation for borrowers in proceedings by lender seeking assistance to take possession

MANU/WB/0653/2015

Company

In an application by a creditor seeking assistance to take possession of the secured asset, under Section 14 SARFAESI Act, 2002, there is no requirement to put the borrower on notice that such an application has been made. The Court differed with judgments of the Supreme Court, where a lack of notification was held to be in violation of the principles of natural justice, as in the instant case the borrowers were not pre-mortgage lessees. It added, however, that the borrowers retained the right to have adjudicated whether a case for exercise of power had been made out in the application under Section 14 of the Act, 2002.

Relevant : Section 14 SARFAESI Act, 2002 Act Harshad Govardhan Sondagar vs. International Assets Reconstruction Company Ltd. and Ors. MANU/SC/0377/2014 Mansa Synthetic Pvt. Ltd. & Ors. vs. Union of India & Anr. MANU/GJ/0415/2012 Standard Chartered Bank vs. V. Noble Kumar and Ors. MANU/SC/0874/2013

Tags : ASSISTANCE   SECURED CREDITOR   ASSET   NOTICE  

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