After a notice under Section 13(2) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act), has been issued, sub-section (3-A) of Section 13 permits the borrower to make a representation or raise an objection to such notice:
“(3-A) If, on receipt of the notice under sub-section (2), the borrower makes any representation or raises any objection, the secured creditor shall consider such representation or objection and if the secured creditor comes to the conclusion that such representation or objection is not acceptable or tenable, he shall communicate within fifteen days of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower:
Provided that the reasons so communicated or the likely action of the secured creditor at the stage of communication of reasons shall not confer any right upon the borrower to prefer an application to the Debts Recovery Tribunal under Section 17 or the Court of District Judge under Section 17-A.”
It can be seen that it is mandatory on the part of the secured creditor (the lender bank in your case) to consider such representation or objection. If the secured creditor comes to the conclusion that such representation or objection is not acceptable or tenable, it is binding on him to communicate within 15 days of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower.
If the lender bank in your case has not given any reply to your representation under the above legal provision and has directly issued a notice of possession under Section 13(4) of the Act, then it appears to be a violation of the mandatory provisions of Section 13(3-A). In my opinion, you can seek your remedies by approaching the Debts Recovery Tribunal (DRT) challenging the notice of possession under Section 13(4). You can further seek consultation from a local lawyer by showing the full documents, since my opinion is tentative as I have not seen the detailed documents.
Dr. Ashok Dhamija is a New Delhi based Supreme Court Advocate and author of law books. Read more about him by clicking here. List of his Forum Replies. List of his other articles. List of his Quora Answers. List of his YouTube Videos.
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