Bank Loan by my house owner
7 months ago
I'm tenant in the house which was under a Loan from bank . Loan disbursed in the year of 2020. Now bankers issued notice under sarfaci act 13(2) another one month available for completion of 60 days. Can I initiate under tenancy act for just buying time to complete the loan. If so how long period can be save the situation.
A.Dear Client,
Being a tenant of the property, you have nothing to do in the matter. The building owner being the borrower of the bank loan has to face all the consequences arising out of the loan recovery process initiated by the Bank for recovery of debt under the SARFAESI Act, 2002. Even, a building owner cannot let out a hypothecated property to others on rent or lease. Recovery of debt from the borrower is a time-bound process and on the expiry of a time limit, the Bank will take its next steps following the provision of the Act. If the borrower fails to discharge his liability despite the service of notice u/s.13(2), the Bank is free to recover the debt through the modes prescribed in sub-section (4) of Sec.13 of the SARFAESI Act, such as – taking over possession of the secured assets of the borrower and sell the said secured asset of the borrower through auction to recover the loan lying outstanding against the Borrower. Once the Bank obtains an order from the Court, you will be evicted from the property immediately upon execution of the decree of the Court.
Being a tenant of the property, you have nothing to do in the matter. The building owner being the borrower of the bank loan has to face all the consequences arising out of the loan recovery process initiated by the Bank for recovery of debt under the SARFAESI Act, 2002. Even, a building owner cannot let out a hypothecated property to others on rent or lease. Recovery of debt from the borrower is a time-bound process and on the expiry of a time limit, the Bank will take its next steps following the provision of the Act. If the borrower fails to discharge his liability despite the service of notice u/s.13(2), the Bank is free to recover the debt through the modes prescribed in sub-section (4) of Sec.13 of the SARFAESI Act, such as – taking over possession of the secured assets of the borrower and sell the said secured asset of the borrower through auction to recover the loan lying outstanding against the Borrower. Once the Bank obtains an order from the Court, you will be evicted from the property immediately upon execution of the decree of the Court.
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A.Dear client,
After the expiry of the 60 days period as mentioned under Section 13(2), SARFAESI Act, the bank may take over the landlord's ownership rights and thus in case the terms of the lease allow the landlord to terminate the lease under certain circumstances such as default on payment of rent etc., and if those circumstances exist, the bank of its own accord has an option to issue a notice for terminating the lease as per the conditions mentioned therein, then subsequently applying to the Magistrate and obtaining eviction orders of the tenant once he has been given an opportunity of being heard.
After the expiry of the 60 days period as mentioned under Section 13(2), SARFAESI Act, the bank may take over the landlord's ownership rights and thus in case the terms of the lease allow the landlord to terminate the lease under certain circumstances such as default on payment of rent etc., and if those circumstances exist, the bank of its own accord has an option to issue a notice for terminating the lease as per the conditions mentioned therein, then subsequently applying to the Magistrate and obtaining eviction orders of the tenant once he has been given an opportunity of being heard.
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