Loan NPA to Property Auction by Bank (Process, Rights & Solution): Advocate Subodh (Video no. 83)

Important Clarification: The 30 days notice for possession as mentioned at 2:41 in this video is not legally mandatory as per section 13(4) of the Sarfaesi Act and has been referred to in a practical sense in the video. Bank is legally entitled to take possession after expiry of 60 days notice as given under sec 13(2), if the compliance of the notice has not been done by the borrower. Nonetheless, most banks usually give 30 days notice to the borrowers before taking possession for the sake of fairness, adequacy of notice and keeping in view Rule 8(1), Rule 8(6) & Rule 9 (1) , practical time taken in obtaining permission under section 14 of the Act and the Appendix IV - "Possession Notice" format which mentions that the bank has taken the possession in exercise of the powers conferred under Sec 13(4) of the Act read with Rule 8 of The Security Interest (Enforcement) Rules, 2002.
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