Demand Notice under SARFAESI ACT to Guarantor refusing to renew the documents

[MANI...@gmail.com]

The Principal borrower has renewed the documents and it is force valid
for 3 years. The guarantor who is the mortgagor also refuses to renew
the documents. The mortgaged property is a residential house
property in a prime location. The Account is NPA. Whether Demand
Notice be issued to both the borrower and guarantor and after 60 days
period is completed whether possession notice can be issued.
subbu

[sabu chelapaden]

Certainly, a notice can be issued under the Sec.Act. As for mortgages limitation  period expires only after 12 years from the date of creation of mortgage. With other documents, supporting the mortgage like, guarantee agreement, etc.the debt can be proved.The action under the act need only be completed before the limiation expires. 

 

Sabu

chel...@yahoo.co.in  
MANI...@gmail.com wrote:

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[SHANKAR K]

>From: MANI...@gmail.com
>Reply-To: Ban...@googlegroups.com
>To: "BankDRT" <Ban...@googlegroups.com>
>Subject: [BankDRT Group] Demand Notice under SARFAESI ACT to Guarantor
>refusing to renew the documents
>Date: Wed, 16 Aug 2006 08:31:49 -0000

>>Any variance made in the agreement between the principal debtor and the
>creditor without the consent of the surety will discharge the surety as to
>the transactions subsequent to the variance. However, the substance of the
>loan/hyporhication/mortage agreementin respect of the case on hand has to
>be looked in to for determining the above.

[BankDRT]

The limitation under AOD is 3 years. If there is equitable mortagage,
limitation runs for 12 years. Thus where AOD has become time barred,
but equitable mortagage survives, then the lendor can proceed on the
basis of equitable mortagage. However, the lendor will not be able to
proceed against the borrower in person and/or for the balance of amount
falling short of the loan amount after having force closed the
mortagage.