Section 13(2) of the SARFAESI ACT

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Nithija (Querist)
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15 July 2023 Dear experts,
If a person obtains 2 loans from a bank:
1) secured OD against a land and building
2) Housing loan
Both loans under different account numbers.
So if the person repays the housing loan and yet to repay the secured OD. The bank has not released the house documents as the secured OD is outstanding. Can the bank person initiate action against both the property? Or just the secured OD?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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15 July 2023 Yes, the bank person can initiate action against both the property.

Nithija

Nithija (Querist)
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15 July 2023 How sir? Is there any way under the act to not initiate action against the house property?

Nithija

Nithija (Querist)
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15 July 2023 Btw thanks for the reply sir.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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16 July 2023 OD taken on land and building.
Bank not released the documents on repayment of housing loan you also agreed for it.

Nithija

Nithija (Querist)
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16 July 2023 But the bank personnel said that the house documents can't be released unless the OD is settled. Is this even legal?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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17 July 2023 Yes, they can withhold for their security.

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