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IN THE DEBT RECOVERY TRIBUNAL. III, VASHI

SA No. of

AAA, ApPlicant

VERSUS

BBB Respondent No. 1

& others

WRITTEN SUBMISSION OF RESPONDENT NO.1. AS REGARDS ACTION TAKEN

UNDER SARFAESI ACT

Respondent No. 1 submits that the following Facility / Facilities were provided to the
Applicant (Borrower) secured by Assets as detailed against the Facility / Facilities.

S. No. Nature and Amount of Facility Security taken and provider of Security
1.
2.
J.

Pursuant to the default committed by the Applicant in respect of

(mention Facility details) which satisfied the RBI Master Circular on
dated ("Guidelines"), the Applicant's account
was classified as Non-Performing Asset (NPA) and Respondent No. 1 took action under
and in accordance with SARFAESI Act 2002 ("the Act"), The Security Interest
(En{orcement) Rules 2002 ("the Rules") and Guidelines.

As part of action taken, Respondent No. 1 is in the process of completing / has

completed the process of in respect of secured moveable
assets I property as on (u o tl it'y ap p r o p r ut te t y)

As directed by the Tribunal, Respondent No. L is providing hereunder sequence of

compliance of requirement.of the Act, the Rules and the Guidelines so far.

'1.. Classification as NPA

S. Applicable Guideline / Compliance Details

No. the Act/the Rules
1. Sec 13(2) of the Act & Applicant committed defauit in the matter of payment
Clause of of _ and the default which occurrecl on
Guidelines _/_/_ continued for a pcriorl of _ rlays
which satisfied RBI Guideline for classifying the
Account as NPA and the classification was done on

n
-/ -/
Issuing Recall Notice and Responding to Reply

S. Applicable Guideline / Compliance Details

No. the Act/the Rules
1,. Sec 13(2) & (3) of the Act Recall Notice (capturing details as per Sec. 13(3) as also
& Borrower's right under Sec. 13(8)) issued on
Rule 3(1) of the Rules (coPy encl.)
-/ -/-.
As per Rule, Notice was delivered on the Borron,cr /
Borrowers' Address (as per records of the Respondent)
by Regd Post / Speed Post / Courier (Proof enclosec'l)
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AND / OR
As per proviso to the Rule, copy of the Notice pasted
on the premises at the Address of the Borrower /
Borrowers,

As per Rule, Contents of the Notice published 2

newspapers having sufficient circulation in the
locality.
2. Sec. 13(3-4.) of the Act & Representation received on (within 60
Rule 3-A of the Rules days of service of Notice); & -/-/-
Reolied on / /
(Timeline of 15 days complied)

3. Follow-up action (fql moveable assets constituting securig)

A. Taking physical possession

Applicable Guideline
the Act/the Rules
Sec. 13(4) of the
Rule 4 of the Rules
/ Compliance Details
Act & (i) AO took possession of the secured moveable assets on
_/ _/ in the presence of 2 witnesses, drew'
Panchnama- (in accordance with Appendix I to the
Rules) and was signed bv witnesses (Panchnama copy
encl.)
(ii) AO got Inventorv of the assets done on
Inventory Statement prepared in accordance
-/ -/ with
-
Appendix II to the Rules
(iii) Notice alongwith copy of Panchnama and Inventory
Statement delivered on Borrower & person entitle tq
receive (delete if hnpplicabte) in accordance Rule 3(1)
(i") As some of the secured moveable assets (list enclosed)
taken possession are subject to speedy or natural decay
or expenses of keeping and maintaining will exceed
their value, AO sold the same for Rs.- (pA*
if not awlicable)
(") As regards debt (due to Borrower from third party),
shares held by the Borrower and other moveable assets
not in the possession of the Borrower have been dealt
with as per Rule 4(5).

B. Valuation
Applicable Guideline / Compliance Details
the Act/the Rules
Rule 5 of the Rules (i) AO got estimated value of the moveable assets taken
possession of done by on _/_/_
and Estimation Report obtained.
(ii) Copy of Estimation Report delivered on Borrower &
person entitle to receive (delete i7 innpplicahle) in accordance
Rule 3(1).
(iii) AO, in consultation with Respondent No. 1, fixed the
Reserve Price and Lot(s) in which the assets have to be
offered for sale.

SA RFAES I Acti o n C hart (Lesal)( FinaU ( I 9 I I 20 I 8 )

 J

C. Sale Process
Applicable Guideline / Compliance Details
the Act the Rules
Rule 6 of the Rules (i) AO decided to sell the secured moveable assets by
inviting quotations from parties dealing with /
interested in the assets OR by inviting tenders from
public OR through public auction / e-auction OR
private treaty;
(ii) For sale through inviting quotations from parties
dealing with / interested in the assets OR private
treat], AO settled terms between secured creditors and
the of settled terms
(iii) AO fixed _/_/ _ as the date of sale
and issued Notice of Sale to the Borrower and served in
accordance Rule 3(1) on _/ _/- thus giving 30
da
(i") As the proposed sale was through inviting tenclers
from public OR through public auction / e-auction,
Respondent No. 1 caused Public Notice' issued in 2
leading news papers as per and in accorclance with
Rule 6(2) on _/_ /_ which also satisfied the 30
Notice requirement ; (copies encl.)
(") As the Sale exercise failed for (gioe
reasons), AO, in exercise of power under proviso to Rule
6(2), decided to carry out sale exercise once again and
fixed _/_ / _ as the proposer.l date of sale ancl
issued Notice of Sale to the Borror,",er & person entitle
to receive (deleta iy itrrtpplicnble) and served in accordance
Rule 3(1) on thus giving 15 days prior
notice; -/ -/-
D. Issue of Sale Certificate
Applicable Guideline / Compliance Details
the Act/the Rules
Rule 7 of the Rules (i) AO received Sale Price in respect of tl-re secured
moveable assets sold as per the terms of public notice
OR as per the terms settled between the parties;
OR
Purchaser failed to pay the Sale Price as such the Sale
failed and AO carried out Sale exercise in accoreiance
with to Rule
(ii) As Sale Price was received as per terms, AO issued
Certificate of Sale as per Appenclix III to the Rules ancl
handed over possession to the Purchaser. (Copy of
Certificate of Sale enclosed )

4. Follow-up action (fql immoveable property constituting security)

A.
Applicable Guideline / Compliance Details
the Act/the Rules
Sec. 13( ) of the Act & (i) AO took symbolic possession of the secured
Rule 8(1), (2) & (2-A) of immoveable property on _/ _/ _by -
the Rules (a) delivering Possession Notice (PN)(prepared as per
Appendix IV to the Rules) on the Borrower & person
entitle to receive (aeUte iS impplicahle) in accordar-rce
Rule 3(1); and

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B.
Applicable Guideline /
the Act the Rules
Sec. L4 of the Act & (i)
Rule 8(3) & (4) of the
Rules
C. Valuation
Applicable Guideline
the Act/the Rules
Rule B(5) of the Rules
SARFAESI Action Chort (Legal)(Final)(l9l I 2018)
4
(b) affixing copy of PN on the outer door/conspicuous
place of the immoveable property;
(ii) As per Rule 8(2), PN was published in 2 newspapers
having sufficient circulation in the locality on
/ / a timeline of within 7 davs ol
comolvins
taking possession; (Copy enclosed).
(iii) As per Rule 8(2-A), copy of PN was served on the
Borrower & person entitle to receive (delete t7 inapplicnbte)
through electronic mode; (lf electronic mode attailable)
Possession
Compliance Details
Respondent No. 1 applied to DM / CMM under Sec. 14
of the Act accompanied by an Affidavit as required
therein ("opy of the Application and Affidavit
(i0 DM / CMM passed Order under Sec. 1-4 on
/ / (copv of the Order alonpnazith Enslish
enclosed
(ii0 Circle Officer / Tah.sildar / Mr. as
authorized by the Order dated _/ _/_ issued
Notice dated _/ J_ to the Borrower & person
concerned (tutete if inappticabte) calling upon him / them to
hand over possession of the immoveable property and
served on him / them in accordance nule S1fi. Copy of
the Notice enclosed;
(i") On failure of Borrower & person concerned (aetete iy
inapplicable). to hand over possession, Circle Officer /
Tahsildar / Mr. issued Notice dated
to with copy endorsed to
-/-/-
the Borrower & person concerned (delete if inapplicabte) and
served on him / them in accordance Rule 3(1). By the
Notice, _/_/_ (_ am / pm) was fixed for
taking forcible physical possession of the immoveable
property. Copy of the Notice alongwith Enelish
(") On _/_/- Circle Officer / Tahsitdar / Mr.
took physical possession of the
immoveable property in the presence of 2 witnesses,
drew Panchnama which was signed by the witnes$es,
and handed over physical possession of the
immoveable to the Authorised Officer;
("i) Copy of the Panchnama was served on the Borrower &
person concerned (delete i1 inapplicable) in accordance Rule
/ Compliance Details
(i) AO got valuation done of the secured immoveable
property taken possession of by an
approved valuer, and obtained Valuation Reporf
(ii) Copy of Valuation Report delivered on Borrower &
perspn entitle to recqive (aeUte iTinappticable) in accordance
Rule 3(1);
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D. Sale Process settling

Applicable Guideline / Compliance Details
the Act / the Rules
Rule 8(5), (6), (4 & (8) of (i) AO, in consultation with Respondent No. L, fixed the
the Rules Reserve Price and Lot/s) in the immoveable
properties have to be offered for sale.
(i0 AO decided to sell the immoveable properties by
inviting quotations from parties dealing with /
interested in the assets OR by inviting tenders from
public OR through public auction / e-auction OR
through private treaty;
(iii) For sale through inviting quotations from parties
dealing with / interested in the assets OR private
treaty, AO settled terms between secured creditors and
the proposed purchaser. (copy of settled terms encl.);
(iu) AO fixeil _/ _/ _ as the proposed date of sale
and issued Notice of Sale to the Borrower & person
entitle to receive (detetc i1 inapplicnble) and served in
accordance Rule 3(1) on _f _/- thus giving 30
days prior notice;
(") Notice of Sale served on the Borrower was also affixed
on the conspicuous part of the immoveable property
covered by the Notice;
("i) As the proposed sale was through inviting tenders
from public OR through public auction / e-auction,
Respondent No. 1 caused Public Notice issued in 2
leading news papers on _/_ /_ as pcr and in
accordance with Rule B(6); (Copies encl.)

E. for Itt Exercise

Applicable Guideline / Compliance Details
the Act/the Rules
Rule 9(1) of the Rules (i) As the public notice of sale was published in the news
paper on _/ _/ _ ancl Notice of Sale was served
on the Borrower on _/ _/ AO fixecl
as the date for carrying
- out Sale

-/ -/ - failed forday tin'reline set by the(gloe

Exercise, satisf),ing 30 Rule;
(ii) Sale Exercise reasons).
AO, in exercise of power under proviso to Itule 9(1),
decided to carry out sale exercise once again and fixed
as the proposed date of fresh Sale
-/-/ - carried out the repeat processes giving 1S
Exercise and
days prior notice. (Copies of Notices & Proof of Service
enclosed)
(iii) Sale Exercise again failed for (giue
reasons). AO, in exercise of power uncler proviso to Rule
9(1), decided to carry out sale exercise once again and
fixed _/ _/ _ as the proposed date of fresh sale
Exercise and carried out the repeat processes givir-rg 15
days prior notice. (Copies of Notices & Proof of Service
enclosed) (oetere if not applicable)

S4R t'.,1{.1{ ..1ilion Chqft ({..er!nl)(Fiil'rli( !ti; j:tt!$,1

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F. of Sale & Time frame for
Applicable Guideline /
the Act the Rules
Rule 9(2), (3 (a) & (5)of (i)
the Rules
G. of Sale
Applicable Guideline /
the Act/the Rules
Rule e(6), (7), (8) & (10) (i)
of the Rules
H.
Applicable Guideline
the Act the Rules
Rule 9(9) of the Rules
SA R FA ES I A cti on Chart (Legat) ( Fi no 0 O 9 I I 20 I S)
Sale Consideration
Compliance Details
AO received highest bid of Rs._/- (which was
above Reserve Price set under Sale Notice dated
_/ _/_) & con{irmed the sale on _/ _/ _ in
favour of the bidder. Applicant No. 1 also confirmed
the same; of Bids & Letters
(ii) AO received highest bid for Rs. /- (which was
below the Reserve Price of Rs. _/- fixed under
Sale Notice dated _/_ / _) and with the consent of
the Borrower & person(s) concerned (delete if inapplicable)
and Applicant No. 1, accepted the Bid and confirmed
the sale in favour of the highest bidder; (Copies of
Letters encl.
(iii) Successful bidder paid Rs. (including EMD of
Rs. being 25% of the Bid Amount on
Rule
(i") Successful bidder paid the balance amount of Rs.
(being 75'/, of the Bid Amount) on
(complving Rule 9(1)).
-/-/ - the time line upto _/-_/ __ (r,vitl-rin 3
AO extended
months of date of Confirmation of Sale) for payment of
balance 75o/" in consultation rvith Successfr,rl Bidder and
Applicant No. 1. (Copy of Letter issuecl by AO tcr
Successful Bidder enclosed)
("i) Successful bidder defaulted in paying the
amount of Rs. _ (being 75% of the Bid Amount)
and forfeited the amount already paid to Applicant No.
1. and also forfeited the claim to the immoveable
sold as Rule
Compliance
AO, after confirmation of the salg by the Respondent
No. 1 and on Successful Bidder cdmplying the terms of
payment of Purchase Price, issued Certificate of Sale of
the immoveable property to the Successful Bidder
(Purchaser) as per Form given in Appendix V to the
(ii) As the immoveable property was put up for sale
subject to declared encumbrance, AO was placed with
fund of Rs. _ (being the amount necessary to
clear the encumbrance and incidental payment) by the
Purchaser.
(iii) Certificate of Sale got registered with sub-Registrar of
Assurance at on
Immoveable to Purchaser
/ Compliance Details
(i) AO delivered and handed over the immoveable
to the Purchaser on
*r<***