One of my friend is going to acquire a property, which was under the possession of State Bank of India under SARFAESI ACT. The borrower was a private limited company consisting of two directors. Both of them were disqualified under Sec.164(2)(a) of the companies act 2013. Their DIN was in active status. The legal title of the property will be transferred by SBI to purchaser. Charge was created with ROC against the property by the company during the year 2010. Now the question is how the said charge shall be satisfied by the company, where both directors were disqualified? What is the legal remedy to the purchaser under companies act with regard to the said charge created? Can SBI alone without the intervention of the company do the satisfaction of charge with ROC? Without satisfaction of the prior charge the said property could not be mortgaged in future with any other bank. Under these circumstances, it is question to the buyer how the legal title is transferred by SBI without any litigation.
Satisfaction of charge for the property acquired under sarfaesi act
Stephen Domnique (1 Points)
12 June 2019