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AAAA CORPORATE OFFICE

LEGAL Department December 7, 2012

ACTION ACTION ACTION ACTION POINTSPOINTSPOINTSPOINTS

The Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act 2002 (SARFAESI Act)

Do’s and Don’ts

APPLICABILITY:

� Proceedings only against Security - Under the Act, Banks can take possession and sell/ transfer only the properties which were offered as security by way of mortgage, hypothecation etc.,

� Liability should be above Rs 1.00 lakh and be class ified as NPA - Provisions of the SARFAESI Act can be made use of for realization of assets classified as sub-standard, doubtful or loss asset as per the directions/ guidelines relating to Asset Classification issued by RBI i.e. it should be classified as an NPA by the Bank and the total dues to be recovered by the Bank should be above r.1.00 lakh.

� Application of Limitation Act - Claim should be made within the period of

limitation prescribed under Limitation Act 1963. That is, when the demand notice is issued under SARFAESI Act, Limitation sho uld be available, based on loan documents / last renewal / Acknowledgement of Debt (D-11).

Generally, the period of limitation available is three years from the date of loan documents / last renewal/ last AOD for hypothecation and if it is to be based on mortgage - twelve years from date of creation of mortgage/ Last AOD.

Initiation of SARFAESI action by issuance of demand notice will not save limitation for suit filing and similarly having done suit filing will not save limitation for SARFAESI action.

� Suit filed accounts - Even in suit filed cases (including cases pending

before DRTs), if the period of limitation is available based on loan documents/ last renewal / AOD (like in the instance of non-suit filed cases), then measures under the Act can be taken. In the case of non-suit filed accounts the following aspects have to be borne in mind:

1. If security is sufficient to cover the dues fully or there is nothing other than the security, bank may issue notice and proceed under the Act.

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2. if security is not sufficient and recovery by proceeding against other assets, is necessary, bank would have to proceed under the Act before filing Suit / Recovery Application sufficiently early so that proceedings under the Act could be completed before the expiry of the period of limitation and bank could file Recovery Application / Suit thereafter for the balance within the limitation period.

� Decreed Cases - The word ‘Debt’ has been defined to mean and include the same term as in ‘DRT Act’. Going by the same money due under a decree is ‘Debt’. Therefore even civil court decreed cases, RC issued cases and Lok Adalat Awards, we may treat the money due under such decrees as ‘Debt’ and the security interest has culminated in the decree and therefore SARFAESI action can be initiated within 12 years from date of Decree/RC, wherever mortgage interest is involved. Here, it has to be borne in mind that there is no distinction between a preliminary decree and a final decree for SARFAESI action and therefore even where preliminary decree is obtained, Bank may issue demand notice based on the same.

� Exemptions:

The Act is not applicable to – a) Security interest created in **Agricultural land. b) Security interest created for securing repayment of any financial asset not

exceeding Rs 1.00 lakh c) Assets in which the Amount due is less than 20% of the principal amount

and interest thereon d) Lien on any goods, money or security, creation of security in air crafts or

vessels, conditional sale, hire purchase or lease or any other contract in which no security interest has been created.

e) Rights of unpaid seller, properties not liable to attachment under Section 60 (1) of CPC (Eg. Tools of artisans, personal belongings like wearing apparel, bedding etc., of judgement debtor, stipends and gratuities allowed to pensioners of Government or of Local Authority, wages of labourers and domestic servants, all monies payable under LIC Policy of the judgement debtor etc.,) and such other items as may be exempted under respective State Amendments.

f) Pledge of movables ** Herein the important aspect to be borne in mind is that if the land is not used for agricultural purposes it will not fall under the exemption. Care should be taken to ensure that the exempted categories do not come under the ambit of such identified accounts. � Guarantor liability and pledge - By resorting to measures under the Act, the

rights of Bank as secured creditor to proceed against the guarantors is not taken away. Similary the right to sell the pledged goods under general law also subsist.

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� Consortium accounts and / or Joint Finance - In the case of financing by more than one secured creditors under consortium arrangement or joint financing, bank is not entitled to exercise the powers under Sec 13 (4) of SARFAESI Act unless secured creditors representing not less than 75% in value of the amount outstanding ( the total amount due to be payable) agree/consent for such action.

This consent is required only at the stage of taking possession etc (Sec 13(4) measures) and not necessarily at the stage of issuance of Demand Notice.

� BIFR accounts - Measures under the Act can be taken even in matters

where BIFR reference is pending. After the commencement of the Act , such references pending before BIFR will abate ( i.e. it will come to an end) if the provisions of sec 13 (4) of SARFAESI Act are invok ed for enforcement of security interest by secured creditors represent ing not less than three-fourth in value of the amount outstanding.

For calculation of period of Limitation in BIFR matters, the Branches have to bear in mind that only the period during which reference was pending before BIFR will get exempted and not thereafter. For example, if the actual balance limitation period available as per the loan documents as on date of reference is three months and a reference was pending before BIFR for one year , then once the reference abates, the balance limitation period that would be available to the Bank shall be only three months from the date on which the BIFR proceedings abated - came to an end.

Sanction to initiate action under the Act - Branches are required to obtain sanction from appropriate authorities to initiate action under the Act. For initiation of SARFAESI action, it is the Zonal Manager who has to give necessary clearance / permission. Suit filing sanction : After SARFAESI action is completed, if still balance amount is to be recovered through suit filing mode, then necessary permission from appropriate suit filing sanctioning authority to be taken. Likewise, even after initiation of SARFAESI action and before it could be concluded, if limitation is likely to get time barred, branch may take necessary permission from appropriate suit filing sanctioning authorities and do the needful to file suit within limitation period. Authorised Officers - The exercise of all rights by the Bank under SARFAESI Act has to be done through an "Authorised Officer” right from the stage of issuance of Demand Notice and up to the stage of issuance of sale certificate in favour of the purchasers, all steps are taken by the bank through the Authorised Officer (AO) only. In terms of the Rules, the Officials not less than the rank of Chief Manager are to be the Authorised Officers (AO). The Zonal Manager will nominate the Authorised Officer for each account. In accounts where security is located in one Zone and account comes under the jurisdiction of another Zone,

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the Zonal Managers of both Zones may co-ordinate and nominate a AO from the circle where the security is located. Security Enforcement Committee: To oversee the process of enforcement of securities and to ensure effective implementation in accordance with the provisions of the Act, a Security Enforcement Committee (SEC) comprising the Zonal Manager, Heads of the Departments - Recovery, Legal, Expenditure, Premises, Inspection, Administration may be constituted at Zonal Offices, with a minimum of three members. However the Authorised Officer shall not be a membe r of SEC . The Department Head of Legal/Recovery Cell in Zonal Office shall be the convenor for this Committee and shall ensure maintenance of all relevant records. The minutes of the meetings held, decisions taken, the norms adopted etc shall be maintained up to date and shall be submitted to the Zonal Manager on a quarterly basis.

The SEC is empowered to take decision on fixation of Reserve Price, EMD, norms on Resale, confirmation of sale, issuance of sale certificate to the nominee, granting time extension, deferring SARFAESI action / sale etc. and communicate the same to the Authorised Officer.

Likewise, in matters wherein the Borrower approaches for OTS/compromise etc, the same shall be considered on merits even though Bank may have issued notice under the Act. Any cost incurred in this regard shall also be taken into consideration while finalising the OTS / Compromise. Guidelines for SEC: The guidelines for the SEC in matters of fixing the Reserve price, EMD, Resale, confirmation of sale are prescribed as under: � The SEC may consider the Reserve/upset price even 10 to 25% less than the

valuation, taking into account the realisable price of the assets at the given point of time but shall not be less than the distress value given by the Approved Valuer or 75% of the market value whichever is higher.

� SEC shall fix the EMD of movable assets and immovable assets offered as

securities in such a manner that it shall be 10% of the reserve price subject to a maximum of Rs.50 lacs and a minimum of Rs.10,000.00.

� Chairman and Managing Director/ Executive Director are empowered to

fix/reduce the EMD on case to case basis depending on the exigencies on a reference from SEC.

� In case the sale is not successful for want of bidders and/or on default of the

purchaser to deposit the purchase price in time, the property could be brought for resale after observing necessary guidelines for fixing the upset price, EMD, other procedural aspects, etc. and after obtaining permission from the appropriate authority.

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� If sale did not materialise owing to default of the purchaser to deposit the purchase price, then when the sale is conducted again, the reserve price does not call for any reduction.

� If it is a Resale for want of bidders, Reserve price to be suggested by the

SEC at 80% of distress sale value or 60% of the market value whichever is higher with the permission from the appropriate authority. Any sale below the above limits may be referred to Chairperson and Managing Director/Executive Director.

� The sale of movables shall be effected in favour of persons who have paid

the agreed sale price or the sale price in terms of public notice as the case may be. When it is an immovable property, sale shall be confirmed in favour of the purchaser who has offered the highest sale price subject to confirmation by SEC .

Demand Notice stage: 1. The issuance of demand notice under Sec.13 (2) of SARFAESI Act after

identification of SARFAESI eligible accounts should not be beyond a time span of 1 week, from the date of account flagged as NPA.

The format of demand notice to be used is given as Annexure I and the format to be used for publication is given as Annexure II.

2. The demand notice should be addressed to the borrower / guarantor(s)/

mortgagor(s) – indicating the correct address / latest address. In the event of any one of the above mentioned persons being since deceased, the notice should be addressed as under: “To ‘the estate of the deceased Shri……………[deceased on…………..(date)] represented by legal heirs viz.(1) ………(2)……………… (3)………………….. “

**If details of all Legal Representatives (LRs) could not be procured, steps may be taken to implead the available LRs as even a few LRs are sufficient to represent the estate and it will be binding on all other LRs.

Demand Notice may be sent to the permanent address also, if any available in our Bank records.

3. In the schedule, correct description of the property / security intended to be proceeded against should be enumerated, with correct Survey No., Boundaries etc.

If the description as per title deeds deposited with the Bank differs with the description on actual verification, it should be indicated correctly in the demand notice and in all other formats that though the description as per title deeds deposited with the Bank is as enumerated in the first portion of the schedule, the actual available description / extent is as enumerated in second portion of the schedule.

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If there are any agricultural lands, which are beyond doubt used for cultivation of food crops etc. the same shall not be included. On the other hand, if it is barren land and / or the land is classified as an agricultural land as per revenue records but used for other purposes including cultivation of commercial crops viz. cardamom, tea, coffee, turmeric, rubber etc., it may be included in the schedule. If there are several securities of which one such security falls under the ambit of agricultural land being doubtful in its usage and which is yet to be ascertained, two demand notice may be issued, wherein the schedule of one demand notice covers the securities which are clear and the other demand notice covers such security to serve as a risk mitigating factor. When such a strategic move is adopted, it is advisable to mention in the demand notice that ‘This is in furtherance to and in addition to earlier demand notice dated…………..’ Wherever possible, a certificate may be taken from Revenue Authorities about the usage of the land. ** There are certain decisions of Madras High Court, Kerala High Court which have held that lands which are used for cultivation of commercial crops are also agricultural lands. However, there is no finality in the issue until the Apex Court, which is seized of the matter renders its decision.

4. Service of demand notice shall not be waited for / attempted indeterminately.

If no acknowledgement is received within 15 days of sending it by registered post and / or attempting personal service within this time period or where covers are returned unserved, Bank should not waste further time and should resort to affixation of demand notice at the place where the borrower / guarantor / mortgagor resides or works for gain and also for publication of demand notice in two newspapers – one in English and one in Vernacular language, having sufficient circulation in the locality (in the vernacular format too). In fact where Bank is sure that the borrower / guarantor / mortgagor are going to avoid service, Bank can even in the first attempt to go for affixation and publication of demand notice.

However, after one week period is over since issuance of demand notice by post, the branch may make an attempt to get a certificate / letter from the Post Master confirming that notice has been delivered at the said address. If such a letter / Certificate could be procured, it could be treated as a valid service.

5. After service of demand notice and after mandatory period of 60 days from date of service (i.e. date of acknowledgement) , if no repayment is made within the waiting period, possession to be taken within time span of 3 days. (if there are more than one notice(s) sent, the waiting period of 60 days would be reckoned from the last issued notice).

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6. The demand notice ought to indicate the correct amount due and the date as on when such amount is due, as latest as possible, at-least the amount due up to the end of the previous month, prior to issuance of demand notice.

7. The demand notice shall be marked to the tenants and / or subsequent

purchasers (after EM in our favour) etc., if it could be ascertained on verification of EC / personal inspection of the property. When copy is so marked, it should be indicated as under:

“Copy to – Shri. ……………(the tenant / the occupant of the property) Copy to – Shri. ………… (the subsequent purchaser as reflected from the EC dated ………….) The above are only indicative and not exhaustive

8. The copy of the demand notice may be marked to the Sub-Registrar Office

(SRO) in view of specific provision Sec.13(13) under SARFAESI Act which states that no alienation / encumbrance can be created after issuance of demand notice.

9. There cannot be any alienation after issuance of demand notice. However, if

there has been any alienation so done, though it is void, Bank shall immediately intimate the purchaser that the property is subject to mortgage and about the SARFAESI action taken by issuance of demand notice and highlighting that the sale / alienation is void.

Supplementary Notices under SARFAESI Act: � If the secured asset is a debt (due to the borrower) and not secured by a

Negotiable Instrument, notices shall be sent to (1) the borrower prohibiting him from recovering such debt and (2) prohibiting the debtor of the borrower from making payment to the borrower, and directing him to make payment to the Bank.;

� If the secured asset is a share in a body Corporate, notice shall be sent to

(i) the borrower directing him to transfer the share to the Bank and (ii) the Body Corporate restraining the Body Corporate from transferring such shares to any other person. Copy of such notice is also to be sent to Registrar/Share transfers Agent of such Body Corporate.

� If the secured asset is any other movable property not in possession of the

borrower (except those deposited in court etc), notice shall be sent to the borrower or any person in possession, to handover the same to the Authorised officer and Authorised officer shall take custody in case of their failure to hand over. The method of taking possession and preservation etc of such movables is the same as applicable generally (enumerated hereunder).

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� If the secured assets are movables other than those mentioned above the Authorised Officer shall take possession of the same by taking possession of documents evidencing title to the same.

These supplementary notices may be sent simultaneously along with the Demand Notice. Sec.13 (3A) provisions and its implications: 10. If there are any objection / representation received from the borrower /

guarantor / mortgagor, for the demand notice, the same has to be looked into and a suitable reply be given within seven days of receipt of the same, with reasons also indicating that the objections / representation is rejected and only after sending a reply, Bank can proceed with the next step of taking possession.

This is a mandatory provision and cannot be dispens ed with.

Upgradation of account: 11. Once demand notice is issued and SARFAESI action is set to roll, if any

payment is received as a consequence of which the account is upgraded in the books of the Bank as per applicable guidelines, Bank cannot fall back upon the earlier issued demand notice in the event of the account becoming an NPA again at a subsequent point of time. It has to issue fresh demand notice to take forward the recovery mechanism through SARFAESI.

Section 13(4) measures: 12. If the borrower / guarantor / mortgagor, fail to discharge the liability within 60

days’ time as stipulated in the notice, under Section 13 (4) of the Act, Bank can take recourse to one or more of the following measures to recover the secured debt.

� Take possession of the secured assets including the right to transfer by

way of lease, assignment or sale for realizing the secured assets. � Take over the management of the business of the borrower (substantial

part of business of the borrower should be held as security for the debt), including the right to transfer by way of lease, assignment or sale for realizing the secured asset.

� Appoint any person (as Manager) to manage the secured asset (possession of which was taken over)

� Require any person in writing who acquired secured asset and from whom money is due or may become due to the borrower / guarantor to pay the Bank so much of the money as is sufficient to pay the secured debt.

Taking Possession: 13. After 60 days from service of demand notice and / or publication of demand

notice as the case may be and after reply to objections / representations if

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any, within 7 days, AO should proceed to take possession of securities without delay. This should be ideally within three days after the above are taken care of.

14. Before proceeding to take possession, the AO shall conduct the physical

verification of the property, to ascertain the correctness of the description, extent and the nature of the property such that the process of taking possession is made simpler and effective.

15. The possession of immovable securities can be symbolic or physical.

Whether AO resorts to symbolic or physical possession, the following steps are mandatory.

� Service of possession notice – be it in person or through post etc. � Affixation of possession notice at the premises which is intended to be

taken possession of.

� Publication of possession notice in two newspapers English and Vernacular language, having sufficient circulation in the locality (in vernacular format too). This publication should necessarily be effected within seven days of taking possession else, the whole process would be rendered nugatory and would have to be repeated.

� The Possession Notice should indicate the correct amount due (upto the

end of atleast previous month) and the date as on when such amount is due.

� Likewise, the schedule of the Possession Notices should indicate the

correct description of the property which has been taken possession of – extent, Survey No. Boundaries etc.

� The format which is affixed should describe only that particular property in

the schedule and not the remaining securities.

� However, the format which is used for publication and service can cover all securities taken possession of in a comprehensive manner.

� The entire process of taking possession will have to be photographed and

videographed, preferably with timer.

16. When physical possession of the securities (immovable properties) are resorted to, besides the above steps, AO will have to take detailed inventory of items inside the premises and thereafter put its lock and seal.

The copy of the possession notice to be made use of is given as Annexure III .

17. The AO, by himself has got powers under SARFAESI Act to take physical

possession. Wherever, the AO anticipates resistance / Law and Order

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problem etc., he is at liberty to approach Chief Metropolitan Magistrate (CMM) or the Dist. Magistrate (DM) with appropriate application seeking assistance in taking possession / control, as the case may be.

The draft format of the application / request to be made to CMM / DM is given as Annexure IV and V . However, these formats may undergo a change depending on the local practice, which may be ensured with local advocates. Though the Act only specifies CMM / DM, in many places, based on local practice, the Chief Judicial Magistrate (CJM) is also empowered to hear such applications. There are decisions of High Courts upholding the same also.

18. Whenever any such applications / request is made before CMM/DM, there shall be no delay in obtaining the orders as there are judgments that CMM shall pass order within a timeframe not exceeding two months .

19. While taking possession of movables, detailed inventory, panchnama should

necessarily be drawn. There is no scope for any symbolic possession of movables like stocks, Plant and Machineries, Equipments etc. The format of inventory and panchnama to be drawn is given as Annexure VI & VII respectively.

20. Wherever physical possession is to be taken bank shall have sufficient witnesses and try to take local police help. If there is possibility of any law and order problem, bank can take orders of CMM / DM as enumerated above.

21. Whenever Bank takes possession of the premises (immovable properties)

and there are items non-hypothecated to the Bank, AO should take detailed inventory of these items and also draw a panchnama using the same formats which are applicable for hypothecated items, but without mentioning the legal provisions. Thereafter, the AO should affix a notice outside the premises which would be indicating that the mortgagor would have to approach the AO and make arrangements to remove these items within a specified time span, failing which Bank would be constrained to abandon the same.

A draft of ‘abandonment notice’ which could be made use of with appropriate changes on case specific basis is given as Annexure VIII. The shifting of non hypothecated items shall be only after issuing appropriate notice for abandonment.

22. Whenever the immovable properties (securities) are occupied by the tenants – whether prior to our mortgage or after our mortgage and wherever Bank resorts to taking symbolic possession, besides adopting the above procedures, the AO may issue a notice as per the draft enclosed herewith as Annexure IX calling upon them to remit whatever amount which they would be remitting to the mortgagor, under Sec.13(4)(d) of SARFAESI Act, which would give a valid discharge to them also. However, care should be taken not to give any indication that they are recognized as tenants under our Bank.

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23. Whenever Bank / AO proceeds to take possession, the approved valuer shall accompany the team mandatorily as only then, the valuation report can be taken at the earliest point of time which would facilitate fixation of Reserve Price by the SEC.

The Bank has already a system of empanelling valuers / Engineers for the purpose of valuing various types of assets. Our Board has approved these valuers in our panel as on 04 10 2002 to function as “Approved valuers” for the purpose of valuation.

Preservation and safety measures: � As per the Rule 8(3) for taking possession, preservation, security

arrangements, scouting for bidders, conducting auction, etc. the AO can appoint any persons / agencies. (seizure agencies, security agencies, auctioneers etc)

� For this purpose, if there are any Specialised Agencies in the approved panel

of our Bank their assistance may be taken. On the other hand, where no such empanelled persons / agencies are available with our Bank, the services of agencies empanelled by any other Banks/Financial Institutions or the Government approved agencies may be utilised. In case there are no such agencies too, then the Zonal Manager shall seek the guidance of Corporate Office Recovery/Legal department to engage any such agencies.

� The Zonal Manager shall advise the Authorised Officer as regards engaging the specialised agency.

� The fee/charges of the outside agencies would vary depending on the nature of securities, market, location, risk factor etc. Hence the fee payable shall be decided prior to entrustment of the work to the agencies.

Filing of caveat : 24. After taking possession and / or any of the Sec.13(4) measures enumerated

under the Act, immediately / same day or at the latest by next day, Bank should file caveat before DRT and High Courts wherever its is accepted, which would be in force for a period of 90 days only. The purpose of caveat is to ensure that no exparte orders are passed by DRT in any Securitisation appeal. Care should be taken to ensure that fresh caveats are filed after the validity period of 90 days to keep it live.

Fixation of Reserve Price: 25. The valuer should accompany the team while taking possession and should

give the report within 24 hours. Thereafter, proposal from branch through AO to ZO should be done within two days and Security Enforcement Committee (SEC) shall fix the Reserve Price within 48 hours.

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Sale Notice: 26. The sale notice should be issued/affixed/published within two days of fixation

of Reserve Price. It shall also be ported simultaneously in bank web-site and ‘tenders.gov.in’. There should be no time lag in this process.

The notice of intended sale is nothing but elaborate format of sale notice used for publication with more terms and conditions. The sale notice format which should be sent by Regd. Post / personal service is given as Annexure X and the sale notice format to be used for publication is given as Annexure XI .

27. The sale notice for publication purposes and tender document formats shall be as per Corporate office format which has covered onerous clauses – given as Annexure XI & XII . The terms and conditions of e-auction as enumerated in the applicable Circulars should form part of the Tender documents and should also be ported in the website(s)

The Tender documents may be fixed with a price of r.200 – r. 500 depending on the volume and proper account be maintained for the number of tender forms sold.

28. The sale notices should also indicate the correct amount due (atleast upto the

end of the previous month). Herein also, the correct description of the securities – the available extent, correct Survey No., boundaries etc. should be incorporated in the sale notice to be issued / affixed / published.

29. Affixation of sale notice should be on the premises which is intended to be

brought for sale and the schedule in the affixation format should describe only that particular security. However, the format which is used for service / publication could be a comprehensive format covering all securities which are being brought for sale.

30. The publication of sale notices shall also be in two newspapers – one in

English and one in vernacular language having sufficient circulation in the locality (vernacular format too).

31. As per recent guidelines, the type of sale has been advised to be only ‘Tender

cum Auction’ process and therefore, appropriate clauses in this regard should be ensured to be incorporated in the sale notices and tender documents.

32. The sale notices and tender formats shall also be ported in Bank web-site and

Government web-site ‘tenders.gov.in’. Besides, now Government of India is popularizing the e-auction process and detailed guidelines in this regard along with names of service-providers have been provided vide Circular NoADV.86 dated 26.10.2012 and Circular No.ADV.94 dated 10.11.2012

However care should be taken to ensue that the publication of sale notices in the newspapers and the porting of the same in web-site happen simultaneously without any time lag what so ever such that the 30 day norm for date of sale is satisfied uniformly, without any ambiguity.

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33. There should be a specific date given for inspection of properties/securities

and inspection of available documents with the AO. On the said date, besides the copies of other documents, the up to date EC shall be taken and shall be made available for perusal to the tenderers and a specific acknowledgement be taken to the said effect. This will give protection as sale is on ‘ as is where is and as is what is basis’.

34. There is no waiting period to come out with a sale notice, after taking

possession. In fact, on approval / fixation of Reserve Price by SEC, the sale notice will have to be issued immediately.

35. But the date of sale shall be clear 30 days after the issuance / affixation /

publication of sale notice i.e. service of sale notice. Care should be taken to ensure that the date of sale specified is clear 30 days after the publication of sale notice comes out in the newspap ers/web-sites . Branch should ensure that there is no lapse whatsoever in this regard which would otherwise vitiate the sale itself. It is advisable to give an additional time frame of nearly 4 to 5 days such that there is no confusion / ambiguity in this regard.

36. When movable assets taken possession of are subject to speedy and natural

decay or the expenses for the safekeeping is likely to exceed its value, the same could be sold / disposed of at once. A mention of this right may be made in the Demand notice itself.

Sale process: 37. Normally, the tenders can be received only upto the date and time specified in

the sale notices and not thereafter. The sealed tenders should be accompanied with EMD taken in DD / BPO / RTGS / NEFT / Account Transfer and / or any other acceptable mode of money transfer without time lag, failing which the tender becomes disqualified.

38. It is advisable to give time for withdrawal of tender upto that date / time

stipulated for opening of tender as otherwise in case of certain contingencies, the tenderers insist for withdrawal and the same is not allowed, it may defeat the sale and / or give rise for proliferation of disputes.

39. The sale procedure shall be minuted and signed by participants .

It is also suggested that depending on the subject / account, the AO may consider having the sale process also photographed and videographed with timer. The cost effectiveness vis-à-vis the total dues and probable sale price may be the weighing factors, to be taken in to consideration to decide whether both photograph and videograph or either would suffice.

40. If there is any interim order passed and served on the AO, just before sale, the contents of it shall be perused carefully and acted upon. At times, it is only sale confirmation that is stayed and not entire sale. In such a scenario, the

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contents of the interim order should be extracted, typed out for information and circulated among the bidders and signature be taken that they have read and understood the same. This should be made transparent to the bidders before opening the bids and if any of the bidders desire to withdraw from the sale process, the same should be facilitated on obtention of specific request letter from them and minuted too.

41. Once the bids are opened and interse bidding is held (which is in the

discretion of the AO), a letter of acceptance will have to be given to the highest bidder, calling upon the bidders to remit the balance 15% (less of the EMD 10%) immediately failing which the bid will be accepted / conferred on the second successful bidder. The draft format of the ‘acceptance letter’ which could be made use of on case specific basis, is given as Annexure XIII.

The balance 15% of the highest / successful bid amount should also be remitted by way of DD / BPO / RTGS / NEFT / Account Transfer and / or any other acceptable mode of money transfer without time lag.

42. Sale price shall necessarily be above reserve price – and not just a marginal increase.

If the sale price is less than the Reserve Price, consent of the borrower is required. Even if there is only single bidder, if the bid amount is more than reserve price and satisfies all other terms and conditions of tender / bid, it can be accepted.

43. No cheque / Cash for EMD / 25% of bid price should be accepted. 44. The bid and EMD amount of the second successful bidder may be retained by

the AO and the EMD of remaining bidders can be returned after 30 days, as stipulated in the sale notice / tender document.

On case specific basis, depending on the amount of EMD, to facilitate active participation at the instance of the bidders, SEC may direct / modify this stipulation that EMD may be returned after a period of 7 days.

45. In case the successful bidder fails to remit the balance 15%, immediately, the

EMD amount remitted (10%) will stand to be forfeited.

In case of default of payment of 25% immediately after sale, the purchaser shall stand to forfeit the EMD and the property shall forthwith be sold again . That is, the second highest offer can be immediately accepted.

46. It is advisable to hold the auction process in the forenoon, such that the bidders do not take the excuse that they could not produce the DD / proof of payment of balance 15%, once the sale acceptance letter is given.

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Before the date fixed for sale, if the borrower / guarantor / mortgagor pays the amount due to the Bank and also the expenses incurred by the Bank, Bank shall not proceed further.

The mode of sale, the various formats and aspects detailed above from Point No. 25 to 46 covers the general mode of sale as well as the e-auction mode. Until the system of e-auction is stabilised, the above aspects of regular auction mode will continue to apply and thereafter once the e-auction mode gains momentum, the formats should be used making applicable deletions indicated therein.

Sale Confirmation and further steps:

47. On acceptance of the successful bid and remittance of the 25% on same

date, the confirmation of sale should be taken through SEC at Zonal Office. This shall not be delayed beyond 3 days, in as much as there is no stay / interim orders.

48. Once sale confirmation is given by SEC, the AO shall communicate the same immediately and call upon the successful bidder to remit the balance amount of 75% within 15 days of issuance of the sale confirmation letter to the successful bidder.

The draft format of sale confirmation to be communicated by the AO to the successful tenderer / bidder is given as Annexure XIV .

49. The balance amount of 75% shall also be received only in DD / BPO / RTGS / NEFT / Account Transfer and / or any other acceptable mode of money transfer without time lag.

50. If payment of balance 75% could not be made within 15 days, extension of

time for payment of balance 75% should be sought in writing by the bidder within the lapse of 15 days period and on careful consideration, it can be given by Bank, communicated through the AO in writing. Even this discretion should be sparingly exercised for genuine reasons, recorded in writing, after taking permission / clearance from SEC.

51. If the successful bidder do not remit the balance 75% within 15 days or

extended time in writing, he would stand to forfeit the 25% remitted on the date of sale.

If balance sale price is not paid within the 15th day of confirmation of sale or extended time agreed in writing between the Bank and the successful bidder, the amount already deposited will be forfeited and property shall be resold . This is an instance of Resale.

52. The extension of time in these matters should b e taken only through SEC.

53. Likewise, deferment of sale etc. can only be done on a decision to be taken

by SEC and not otherwise.

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Whenever, SEC takes a conscientious decision to give time extension for remittance of balance amount of sale proceeds, it is advisable to collect delayed payment interest at applicable Bank rate.

Wherever SEC is the authority to take decision, the re cannot be any dilution and / or shortcut route adopted . The AOs have no powers to suspend or defer the operation of SARFAESI action right from demand notice till sale unless there is a restraint order served on them. It is only SEC which is empowered in such matters. In case the sale is not successful for want of bidders and / or on default of the purchaser to deposit the sale price in time, the property could be brought for resale after observing necessary guidelines for fixing the Reserve price, EMD, other procedural aspects etc.,

Wherever SEC has been given discretion / powers to give time extension, deferment of sale, collecting of delayed payment interest etc., the same may be exercised and thereafter confirmation may be sought from Corporate Office, Recovery / Legal Dept. within a time span of one week. It may be taken note of that the discretion / powers are now percolated to SEC to avoid time lag.

Receipt of complete sale price and further steps:

54. Once complete sale proceeds are remitted, then sale certificate can be issued

and thereafter the sale proceeds can be appropriated. 55. Before the complete purchase price is remitted, at no point of time, the 10%

EMD or the 25% amount which is received after the acceptance letter is given, can be appropriated to the loan account. It is only after the purchase price is received and sale certificate is issued that it would be proper to appropriate the same to loan account. Even in instances where 10% is forfeited or the 25% is forfeited, the forfeited amount shall only be taken to Income and not to Loan account.

56. The AO shall apply the money so received by him in the manner mentioned in

Sec 13 (7) of the Act i.e. first towards the costs, charges and expenses incurred , thereafter towards amount due under the loan transactions and the balance or surplus if any, shall be paid to the person entitled.

57. While appropriating, care should be taken to ensure that first the cost and

expenses incurred towards SARFAESI action, fee of enforcement agents etc. are recovered and thereafter only appropriation is done towards total dues, that too first towards book balance and then only towards MOI/ Interest.

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Concept of nomination: 58. The SARFAESI Act and the Rules neither facilitate nor prohibit nomination in

SARFAESI sale. � Predominantly the practice of nomination, at any stage of sale, should be

discouraged.

� Even assuming that nomination can be facilitated on case specific basis, the following safeguards will have to be necessarily adopted.

� Sale confirmation should be given only to the successful tenderer / bidder

and the Sale price should come in entirety to be received from the successful tenderer/ bidder only . Even if the successful tenderer / bidder seeks execution of sale certificate in the name of any nominee, it shall be only after remittance of complete sale price by the successful tenderer / bidder and not otherwise.

At the cost of repetition it is stressed that even if sale certificate is proposed to be issued in the name of the nominee, it shall be only on a specific request cum undertaking from the successful bidder / proposed nominee and that too only after complete remittance by the successful tenderer / bidder as stated above. Care should be taken to adhere to the recent formats of sale notice and tender documents made available along with this booklet.

59. Further it is only the SEC that can permit issuance of sale certificate in the

name of the nominee on case specific basis that too only after confirming that all the above safeguards have been meticulously adopted/ followed.

� The format of undertaking cum request to be taken from the successful

tenderer / bidder and the proposed nominee is placed as Annexure XV .

60. The sale certificate shall be issued within 2 days of receipt of entire sale proceeds and shall be registered by the purchaser bearing the stamp duty / registration charges. This clause is already contained in tender document.

Sale Certificate: 61. Movables: On completion of sale, a certificate of sale may be issued as per

Appendix III to the Rules specifying the property sold, price paid, name of the purchaser etc., which will be prima facie evidence of title for the purchaser (Annexure XVI)

62. Immovables : On confirmation of sale by the Bank and compliance of terms of

sale , a sale certificate to be issued in favour of the purchaser which shall mention whether the sale is free from encumbrance or not (Annexure XVII)

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In all, the entire process of holding SARFAESI sale / concluding SARFAESI sale should be completed within a maximum time span of 120-150 days from the date of issuance of demand notice, in as much as there being no interim orders from any Court / DRT. Meticulous care should be taken to adhere to all guidelines stipulated in this booklet and it should be ensured that the formats provided with this booklet are adhered to without deviations. In case any particular clause is sought to be deleted / modified for any reasons whatsoever, it would be advisable to take legal opinion before doing so. Law of priority of statutory dues vis-à-vis dues of Secured Creditor: Many a time, after Bank exercises its rights under SARFAESI and brings the securities for sale, the sales tax authorities, IT authorities etc. issues notice of attachment and call upon us to pay the sale proceeds claiming priority and first charge over the assets/securities. In this regard, we wish to state that Sales Tax dues and its concept of priority vis-à-vis the dues of Secured Creditor varies from State to State, depending on the local Sales Tax enactment. EPF dues, which is under Central enactment gains priority over the dues of Secured Creditor. Income Tax dues on the other hand, is not conferred first charge over that of the Secured Creditor. In toto, we wish to state that the Law of priority of statutory dues vis-à-vis the dues of Secured Creditor is still subjective based on various provisions of Law as well as legal decisions given by Courts. Therefore, whenever any notices are issued in this regard by statutory authorities, the Branch and the AO should collect complete particulars of the dues payable by the borrower / guarantor / mortgagor to the statutory authorities and take legal opinion on the issue of priority without any time lag. Role of AO: The Authorised Officer (AO) should in co-ordination with the Branch should ensure the following and do the necessary spade work within the 60 day waiting period:

i. The details of the account viz., the securities taken, securities available, the copy of the notice issued / to be issued , subsequent developments if any, response of the borrower and all other details giving the profile of the account to be collected by AO.

ii. AO shall scrutinize the notice issued, title deeds, EM documents, Up to

date EC and other relevant documents for correctness of exact particulars/specifications of assets mortgaged / charged. AO shall check up and ensure from the Branch records that there is no stay orders passed by the High Court or other judiciary bodies restraining the bank from taking possession.

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iii. AO shall ascertain the exact whereabouts of the property and necessarily carry out physical inspection of the securities, ear mark the correct extent / boundaries and do other preliminary steps / verification for taking possession at least a few days in advance to avoid last minute confusion and unnecessary time delay.

iv. If the Secured asset intended to be taken possession of is a unit engaged

in specialized services then AO should take the assistance of experts in that field who will identify the items correctly at the time of taking inventory of the movables

v. AO shall fix the probable date of taking possession and shall proceed to

take possession (taking possession shall necessarily be after the 60 days period mentioned in the Demand Notice is over – after serving of demand notice)

vi. When the probable date of taking possession is fixed, arrangements for

taking photos, video shall be made and the AO has to ensure that all necessary tools in this regard viz., sufficient number of chains, locks and keys, boards depicting possession, paint & brush, cloth banners and other tools of the kind are kept ready – at least a day before the actual date fixed for taking possession to avoid unnecessary delay. Proper accounts for expenses incurred in this regard shall be maintained.

vii. Possession of the movable secured assets has to be taken by drawing a

Panchnama in the presence of the two witnesses and making an inventory. A copy of inventory shall be delivered to the borrower.

viii. Possession of the immovable property has to be taken by delivering a

possession notice to the borrower. The possession notice may be affixed at conspicuous places of the property and published in two leading newspapers, one in vernacular language and one in English. Therefore the possession Notice also has to be translated in the respective vernacular language and kept ready.

ix. While taking possession of mortgaged immovable assets, AO may come

across movables which are charged and not charged to the Bank within the Premises. In such cases inventory and Panchnama as per Rules have to be prepared for hypothecated items and separate inventory be prepared for items not charged/hypothecated to the Bank and an appropriate notice be issued for the non hypothecated items indicating abandonment.

x. On the other hand , if the items found inside the mortgaged Premises are

only those items not charged/hypothecated to the Bank, a separate inventory of such movables not charged to the Bank should also be prepared and notice be issued to the owner/mortgagor calling upon them to arrange for removal of such items at the earliest. It should be made clear in the said notice that Bank shall not take any insurance coverage and shall not be held responsible for any loss/pilferage of such items if the

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owner does not make his own arrangements; else Bank will be constrained to abandon the same.

xi. Likewise when the property is in possession of tenants, Bank can only

take symbolic possession. In such cases, AO shall issue a notice under Section 13(4) (d) and call upon the tenants to remit the further rentals payable by them to the mortgagor to the bank, which would get a valid discharge.

xii. The AO has to keep entire records of expenses / costs incurred, copies of

all notices, correspondences, bills etc., for each of the accounts separately.

xiii. Bank has to safeguard / preserve the property / securities after taking

possession. Any of the specialized agencies who can be engaged for this purpose may be kept in readiness for taking care of assets, Watch and ward purpose with the permission of Zonal Office after negotiating the terms. In this connection AO may if necessary, take the help of Security Department for engaging the services of approved agencies.

xiv. AO should ensure that the assets taken possession of are adequately

insured. The AO may decide upon the type of insurance depending on the nature of Risks to be covered etc., - like Fire, theft, burglary etc., All the costs thereto have to be appropriated from the sale proceeds ultimately. Therefore proper records and accounts to be maintained for all the expenses account-wise.

After possession is over, the AO has to ensure the following:

� Get latest EC & Valuation after taking possession. � Consult the Security Enforcement Committee (SEC) constituted in

respective Zones for fixation of Reserve price, Earnest Money Deposit etc. and get the Reserve Price fixed through the SEC.

� Decide the mode of sale through the SEC. � Thereafter Issue the Notice of Intended Sale / publish the sale notice � Adhere to the formats and guidelines scrupulously. � Conduct the sale in a transparent manner as per guidelines � Obtain the sale confirmation only through SEC and thereafter

communicate the same to the successful bidder. � Adhere to time frame at each and every stage � Adhere to the stipulated guidelines in all stages of SARFAESI

The Zonal Office shall maintain separate files for each account containing all particulars of the accounts, copies of Notices issued, action taken, orders passed, cost incurred and all other relevant particulars. The details shall be maintained and updated as per the enclosed format – Annexure XVIII.

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Other vital aspects: The entire process of SARFAESI action should be taken forward as per extant guidelines in a time bound manner, without delay on part of the Bank, lest legal interventions in the manner of stay / securitisation appeals / writ petitions etc. may create stumbling blocks in our progress of recovery. 63. In accounts wherein Suit / Recovery Application has been filed and thereafter

measures under the Act are resorted to, details of recovery effected may be informed to DRT / Court by filing a suitable memo. If dues are fully satisfied , then too, a suitable memo may be filed

64. Once the SARFAESI action against available securities is completed and if

there is still balance to be recovered in the loan account, depending on the amount still due, further action for recovery – be it through DRT / Civil Court will have to be initiated, after getting clearance / permission from suit filing sanctioning authorities.

65. If the amount due yet to be recovered is r.10.00 lakhs and above, the

appropriate forum to be approached is DRT. The draft application to be made use of in such instances is given as Annexure XIX .

If the amount due yet to be recovered is less than r.10.00 lakhs, the appropriate forum to be approached is the Civil Court.

66. On the other hand, if there is a danger of the limitation expiring based on loan

documents while SARFAESI action is being pursued, the necessary suit filing – be it before Civil Court or DRT as the case may be will have to be done within the limitation period, after getting suit filing sanction from the competent authorities.

67. Last but not the least, limitation is to be safeguarded and looked into for both

initiation of SARFAESI action, commencing from issuance of demand notice and also for suit filing. It has to be borne in mind that both SARFAESI and suit filing process are independent / parallel actions of recovery and the same has also been upheld by Hon’ble Supreme Court in Transcore case.

Application / Appeal to DRT and further appeal to D RAT: 68. Any person (including borrower / guarantor / mortgagor) aggrieved by the

action of the Bank can prefer appeal before DRT having territorial jurisdiction in the matter within 45 days from the date of action challenged. No deposit is required to be made by the borrower at this stage.

69. However if the borrower desires to prefer further appeal to DRAT as against

the orders of DRT, he can do so within 30 days from the date of receipt of order of DRT, after depositing 50% of the outstanding claim made by the secured creditor or determined by the DRT whichever amount is less. The DRAT has the leeway to lower the amount upto 25%.

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This pre-deposit of 25% is mandatory provision and cannot be dispensed with by DRAT.

If DRT or DRAT while disposing of the appeal comes to the conclusion that Bank wrongly holds possession, while directing return of the assets, can hold that the borrower / guarantor ( from whom the assets were taken) shall be entitled to such compensation as may be determined by DRT / DRAT.

The field level functionaries may bear in mind that certain modifications have been made, in the applicable guidelines / formats pertaining to SARFAESI action and in such areas, the guidelines / formats contained herein will supersede the earlier advisories / Circular letters issued hitherto.

Summing up: SARFAESI is a vital tool of recovery and effective also. At the same time, all the procedural aspects should be adhered, to avoid contentious issues and delay by any forum. This ready reckoner with the formats could be made use of and in case any assistance / clarification is required, the branches and the AOs may approach Zonal Office, Legal Cell or Corporate Office, Legal Dept through the Zonal Office such that lapses could be avoided and recovery can be maximized.

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Abbreviations:

S.No. Abbreviations Full description 1. DRT Debt Recovery Tribunal 2. SARFAESI Act Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act 3. NPA Non Performing Asset 4. AOD Acknowledgement of Debt 5. DRT Act

RDDBF Act Recovery of Debts due to Banks and Financial Institutions Act

6. CPC Civil Procedure Code 7. BIFR Board for Industrial and Financial Reconstruction 8. SICA Sick Industrial Companies Act, 1985 9. AO Authorised Officer 10. SEC Security Enforcement Committee 11. EMD Earnest Money Deposit 12. OTS One Time Settlement 13. LRs Legal Representatives 14. EM Equitable Mortgage 15. EC Encumbrance Certificate 16. SRO Sub-Registrar Office 17. CMM Chief Metropolitan Magistrate 18. DM District Magistrate 19. CJM Chief Judicial Magistrate 20. ZO Zonal Office 21. ZM Zonal Manager 22. DD Demand Draft 23. BPO Bankers Pay Order 24. RTGS Real Time Gross Settlement 25. NEFT National Electronic Fund Transfer 26. MOI Memorandum of Interest 27. SHO Station House Officer

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DEMAND NOTICE ANNEXURE I

Notice under Sec. 13 (2) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 200 2 Place: Date: From (Name)(Designation) Authorised Officer (Office)(Address) To 1. ________ (borrower),------------(address) 2. ------------- (borrower)-------------(address) 3. --------------(guarantor)----------- (address) 4. --------------(guarantor)----------- (address) 5. --------------(mortgagor)---------- (address) 6. --------------(mortgagor)-----------(address) Sirs, Sub: Your loan account/s _____________with Indian B ank..........branch - Reg The first of you is an individual/proprietary concern/partnership firm/company. The

2nd / 2nd to _________ is/are proprietor/partner(s)/director(s) now or at all material

times. The 2nd to ___________are guarantors to the loan accounts availed by the

first of you. The _________of you is/are the mortgagor(s) having offered their

assets as security to the loan accounts availed by the first of you.

At the request of the first of you, in the course of banking business, the following

facilities were sanctioned and were availed by first of you. (If there has been any

subsequent enhancement/renewal/additional loans, the details of the same may also

be incorporated specifically).

Nature of facility Limit (r. in lakhs)

1. 2.

The first of you have executed the following documents for each of the said facilities:

Nature of facility

1.

Nature of documents

a

b

c

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2.

a.

b.

c

The repayment of the aforesaid loans are personally guaranteed by No_____ of you

by executing an agreement of guarantee dated _________. The repayment of the

said loans are secured by mortgage/hypothecation of property(ies) at

_______________ and fixed assets/stocks/movables at ______________ as given

in the schedule hereunder belonging to No.________of you.

@ You have acknowledged the indebtedness in respect of the aforesaid facilities

from time to time. The last such acknowledgement issued in our favour for

r..___________ as on ___________ is dated _____________.

(@ to be deleted in cases where notice is issued within period of limitation under

initial loan documents)

Despite repeated requests calling upon you to pay the amounts together with

interest, all of you and each of you who are jointly and severally liable have failed

and committed default in repaying the amount due. The loan account has been

classified as Non Performing Asset since ____________ in accordance with

directions/guidelines relating to asset classifications issued by Reserve Bank of India

* * * The outstanding dues payable by you as on ____________ amounts to

r.________ and the said amount carries further interest at the agreed rate from

_________till date of repayment.

* * * The Bank had filed Suit/Recovery Application before the …….Court/…..DRT

on……The amount payable by you as on date of filing suit is r ……... You have to

pay further interest on the suit claim at the rate specified in the Plaint/Recovery

Application from ……till date of repayment and other costs, charges and incidental

expenses. The total amount payable by you is r …………(The total amount should

be the suit amount + interest at the agreed rate as applicable to each facility +

expenses and charges incurred for filing of suit/recovery application and expenses

incurred for insurance /preservation of the securities etc.)

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* * * The amount payable by you as per the decree/Recovery certificate dated…… is

r …… You have to pay further interest on the said decretal dues as per the terms of

the decree ……till date of repayment .

* * * ( Please retain whichever applicable and delete the other portions depending on

the facts/ nature of each account ).

The term borrower under the Securitisation and Reconstruction of Financial Assets

and Enforcement of Security Interest Act 2002 means any person who has been

granted financial assistance by Bank or who has given any guarantee or created any

mortgage / created charge as security for the said financial assistance granted by

the Bank.

Therefore, all of you and each of you are hereby called upon to pay the amount due

as on date viz- r._______together with interest from this date till date of payment

within 60 days from the date of this notice issued under Sec.13(2) failing which Bank

will be constrained to exercise its rights of enforcement of security interest without

any further reference to you under the said Act. If you fail to discharge your liabilities

in full within 60 days from the date of this notice, Bank shall be exercising its

enforcement rights under Sec 13 (4) of the Act as against the secured assets given

in the schedule hereunder.

On the expiry of 60 days from the date of this notice and on your failure to comply

with the demand, Bank shall take necessary steps to take possession for exercising

its rights under the Act.

Please note that as per the provisions of Sec. 13 (13) of the Act no transfer of the

secured assets (given in the schedule hereunder) by way of sale, lease or otherwise,

shall be made after the date of this notice without the prior written consent of the

bank.

Needless to mention that this Notice is addressed to you without prejudice to any

other remedy available to the Bank. Please note that this notice is issued without

prejudice to Bank's right to proceed with the proceedings presently pending before

DRT/RO of DRT/DRAT/Court and proceed with the execution of order/decree

obtained/to be obtained.

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Please note that the Bank reserves its right to call upon you to repay the liabilities

that may arise under the outstanding bills discounted, Bank guarantees and letters of

credit issued and established on your behalf as well as other contingent liabilities.

The Undersigned is a duly Authorised Officer of the Bank to issue this Notice and

exercise powers under Section 13 aforesaid.

SCHEDULE The specific details of the assets in which security interest is created are enumerated hereunder:

Mortgaged assets Detailed description of each of the assets subject to mortgage viz, the state, district, taluk, village, survey no, extent, boundaries, etc. shall be provided. (The description shall be so exhaustive that it will be easy for anybody to identify and locate the property).

Hypothecated assets Detailed description of the hypothecated assets Vi z., the nature of stocks/Plant & Machinery/movables, make a nd year of manufacturing wherever applicable, location, et c shall be provided. (The description shall be exhaustive to enable any third party to identify the hypothecated securities).

Yours faithfully,

Authorised Officer Indian Bank A copy of the notice may be sent to Zonal Manager and CO: Recovery / Legal Department after it is sent.

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ANNEXURE II Publication Demand Notice

Notice under Sec. 13 (2) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 200 2

Sent on ………….. by Regd. Post / Speed Post /Courier to …………………. Mr/Ms/M/S………. (mention the name of the person evading notice and his address)

Sub: Loan account/s ___________________ with Indian Bank............branch

You committed default in repayment of loans to the tune of r ……….(mention the amount due - Book balance+ MOI) as on ……………. with further interest at the agreed rate from _________till date of repayment.

The Bank issued notice under the Act on ……calling upon you to repay the outstanding amount of r …………… as on …………….. The notice was sent to you by *Regd. post/*Courier/*Speed Post/ (*strike out whichever not applicable) has been returned unserved.

You are called upon to pay r._____________together with interest from …….. till date of payment within 60 days from the date of this notice failing which Bank will be constrained to exercise its rights of enforcement of security interest as against the secured assets given in the schedule hereunder. This Notice is without prejudice to any other right remedy available to the Bank.

*****This Notice is without prejudice to any other remedy available to the Bank - including its right to proceed with the proceedings presently pending before DRT/RO of DRT/DRAT/Court and proceed with the execution of order/decree obtained/to be obtained. (***** Delete if not applicable)

SCHEDULE The specific details of the assets in which security interest is created are enumerated hereunder:

Mortgaged assets Detailed description of each of the assets subject to mortgage viz, the state, district, taluk, village, survey no, extent, boundaries, etc. shall be provided. (The description shall be so exhaustive that it will be easy for anybody to identify and locate the property).

Hypothecated assets Detailed description of the hypothecated assets Vi z., the nature of stocks/Plant & Machinery/movables, make a nd year of manufacturing wherever applicable, location, et c shall be provided. (The description shall be exhaustive to enable any third party to identify the hypothecated securities).

The Authorised Officer Indian Bank

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ANNEXURE III

APPENDIX – IV

(Rule-8(1)} POSSESSION NOTICE (for immovable property)

Where as The undersigned being the Authorised Officer of the Indian Bank under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and in exercise of powers conferred under Section 13 (12) read with rule 8 and 9 of the Security Interest (Enforcement) Rules, 2002 issued a demand notice dated……………. Calling upon the borrower Shri…………………………..M/s………………….. with our ………..Branch to repay the amount mentioned in the notice being r …………………….. (in words……………..) within 60 days from the date of receipt of the said notice. The borrower having failed to repay the amount, notice is hereby given to the borrower and the public in general that the undersigned has taken possession of the property described herein below in exercise of powers conferred on him / her under Section 13 (4) of the said Act read with rule 8 and 9 of the said rules on this ……….day of ……………..of the year ………………… The borrower in particular and the public in general is hereby cautioned not to deal with the property and any dealings with the property will be subject to the charge of the Indian Bank for an amount of r …………………and interest thereon.

DESCRIPTION OF THE IMMOVABLE PROPERTY

All that part and parcel of the property consisting of Flat No………../Plot

No…………….in Survey No………………/City or Town Survey No………../Kasara

No……………….within the Registration sub-district ………………. And

District……………..

Bounded; On the North by On the South by On the East by On the West by Date: Place: Sd/- Authorised Officer (Indian Bank)

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ANNEXURE IV

APPLICATION TO CMM

BEFORE THE HON’BLE CHIEF METROPOLITAN MAGISTRATE OR DISTRICT MAGISTRATE, …… (NAME OF THE PLACE)

IN THE HON’BLE COURT OF THE CHIEF METROPOLITAN MAGISTRATE

Crl.Misc Petition No……………/20……..

Indian Bank, …………………………. …………………………. Rep. by its Authorised Officer Shri. S/o…………….. R/o…………… Petitioner

Vs. 1. Mr./ Ms. / M/s……………… Son / Daughter of ……………… Residing at …………………. Respondents Application / Petition of ……. Bank under Sec.14 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002

The description of the Petitioner and the respondents are as stated in the cause title. Shri ………….. the Authorised Officer of …………. Bank having been authorized to exercise the powers of secured creditors under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the SARFAESI Act) most respectfully submits as under: M/s……….. (name, constitution and address of the borrower) have availed various credit facilities from the …… Bank at their ….. Branch aggregating r …… (Rupees …………… only) and for the due repayment of credit facilities availed, they have created security interests over their assets as per the particulars given below:-

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Nature of limit Amount Outstanding as on ….. inclusive of interest upto ……..

Details of documents/ arrangements creating security interest

Description and location of securities

1 2 3 4 5

***The copies of the loan documents / security documents are filed before this Hon’ble Court

(the documents may be filed with the CMM, depending on the local requirements stipulated by the CMM. Likewise, the cause title p ortion contained herein may be used depending on the local practice).

On account of defaults committed by the borrower in payment of interest and principal amounts due and payable to the Bank, the account of the borrower has been classified as non-performing asset and demand notice under Sec.13(2) of the SARFAESI Act has been served on the borrower on ………….. In spite of such notice the borrower has failed to repay and discharge their liabilities to the Bank in full. The total dues payable by the respondents to the Bank is r………….. as on …………….. Representations/objections received from the borrower in reply to the notice by his letter dated ……. have been considered by the Bank and since the same are not acceptable, the Bank has decided to take possession and control of the secured assets described above for the purpose of realization of the assets under sub-section (4) of Sec.13 of the SARFAESI Act to enable us to bring the property to sale and effect transfer of the same to the successful purchaser. The secured assets are situated at …………. which area / location is within the jurisdiction of this Hon’ble Court / Authority. **** We propose to take possession of the securities enumerated in the schedule and we anticipate that the borrower/mortgagor will not co-operate and we also foresee resistance from their end. ***** We took possession of the property on ……………. However, there are still …………………………………………as, we had problems / resistance from the respondents, as a consequence of which Bank / AO could only take symbolic possession of the securities and control could not be taken. We propose to effect sale of the property on ………..by way of private treaty/Public tender/Public auction. .

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***** We sold the schedule mentioned property on…………. We have to transfer the same in favour of the purchaser viz. ……………., for which assistance of the Hon’ble CMM is required.

(delete whichever not applicable) Sec.14 of SARFAESI Act reads as under:

“Chief Metropolitan Magistrate or District Magistrate to assist Secured Creditor in taking possession of Secured asset. - (1) where the possession of any secured asset is required to be taken by the Secured Creditor or if any of the secured asset is required to be sold or transferred by the Secured Creditor under the provisions of this Act, the Secured Creditor may, for the purpose of taking possession or control of any such secured asset, request in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any such secured asset or other documents relating thereto may be situated or found, to take possession thereof and the Chief Metropolitan Magistrate or as the case may be the District Magistrate shall, on such request being made to him

a. take possession of such asset and documents relating thereto; and b. forward such asset and documents to the secured creditor

(2) for the purpose of securing compliance with the provisions of Sub-section (1) the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use or caused to be used such force, as may, in his opinion, be necessary

(3) no act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of this Section shall be called in question in any Court or before any authority.”

Prayer: The Applicant therefore prays that this Hon’ble CMM / Court may be pleased to

1. pass orders to appropriate authorities directing to take possession and control of the secured assets as described above and such seized assets may please be handed over to the applicant / petitioner / Bank as provided in Sec.14 of the SARFAESI Act.

2. **to appoint an Advocate Commissioner and direct him to take

possession/ control of the secured assets, by taking an inventory and panchanama of the items / articles in the scheduled property and to direct that the same be handed over to applicant / petitioner / Bank.

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3. **To pass orders / suitable directions to the Station House Officer (SHO)

to render assistance to the applicant / Bank, to evict the occupants of the scheduled property, to break open the secured asset / premises if need be, and to deliver possession / control of the secured assets to the applicant / Petitioner / Bank.

(**Retain the applicable prayers in consultation wi th the advocate and depending on local practice, it may be accompanied by a suitably drafted affidavit. )

4. To pass such other order as this CMM / Court may deem fit and proper in

the given facts and circumstances of the case to secure the ends of justice.

Place: Authorised Officer of ………. Bank Date : *Counsel for the Petitioner /Bank Address:

34

ANNEXURE V

DRAFT LETTER TO DISTRICT MAGISTRATE

To, Shri. ………… District Magistrate, …………………. Dear Sir, Sub: A/c ……………….. with our ………………. branch - Assista nce to take

control of the securities Shri ………….. the Authorised Officer of …………. Bank having been authorized to exercise the powers of secured creditors under the provisions of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (the SARFAESI Act) most respectfully submits as under: M/s……….. (name, constitution and address of the borrower) have availed various credit facilities from the …… Bank at their ….. Branch aggregating r …… (Rupees …………… only) and for the due repayment of credit facilities availed, they have created security interests over their assets as per the particulars given below:-

Type Description and location of securities (Description should be exhaustive and accurate)

Mortgaged Assets Hypothecated assets

On account of defaults committed by the borrower in payment of interest and principal amounts due and payable to the Bank, the account of the borrower has been classified as non-performing asset and demand notice under Sec.13(2) of the SARFAESI Act has been served on the borrower on ………….. In spite of such notice the borrower has failed to repay and discharge their liabilities to the Bank in full. The total dues payable by the respondents to the Bank is r………….. as on …………….. The Bank has decided to take possession and control of the secured assets described above for the purpose of realization of the assets under sub-section (4) of Sec.13 of the SARFAESI Act to enable us to bring the property to sale and effect transfer of the same to the successful purchaser.

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The secured assets are situated at …………. which area / location is within the jurisdiction of this Authority. **** We propose to take possession of the securities enumerated in the schedule and we anticipate that the borrower/mortgagor will not co-operate and we also foresee resistance from their end. ***** We took possession of the property on ……………. However, there are still …………………………………………as, we had problems / resistance from the respondents, as a consequence of which Bank / AO could only take symbolic possession of the securities and control could not be taken. We propose to effect sale of the property on ………..by way of private treaty/Public tender/Public auction. . ***** We sold the schedule mentioned property on…………. We have to transfer the same in favour of the purchaser viz. ……………., for which assistance of the Hon’ble CMM is required.

(delete whichever not applicable) Sec.14 of SARFAESI Act reads as under:

“Chief Metropolitan Magistrate or District Magistrate to assist Secured Creditor in taking possession of Secured asset. - (1) where the possession of any secured asset is required to be taken by the Secured Creditor or if any of the secured asset is required to be sold or transferred by the Secured Creditor under the provisions of this Act, the Secured Creditor may, for the purpose of taking possession or control of any such secured asset, request in writing, the Chief Metropolitan Magistrate or the District Magistrate within whose jurisdiction any such secured asset or other documents relating thereto may be situated or found, to take possession thereof and the Chief Metropolitan Magistrate or as the case may be the District Magistrate shall, on such request being made to him

c. take possession of such asset and documents relating thereto; and d. forward such asset and documents to the secured creditor

(2) for the purpose of securing compliance with the provisions of Sub-section (1) the Chief Metropolitan Magistrate or the District Magistrate may take or cause to be taken such steps and use or caused to be used such force, as may, in his opinion, be necessary

(3) no act of the Chief Metropolitan Magistrate or the District Magistrate done in pursuance of this Section shall be called in question in any Court or before any authority.”

36

Prayer: The Applicant therefore prays that this Hon’ble DM may be pleased to

1. pass orders to appropriate authorities directing to take possession and control of the secured assets as described above and such seized assets may please be handed over to the applicant / petitioner / Bank as provided in Sec.14 of the SARFAESI Act.

2. **to appoint an Advocate Commissioner and direct him to take

possession/ control of the secured assets, by taking an inventory and panchanama of the items / articles in the scheduled property and to direct that the same be handed over to applicant / petitioner / Bank.

3. **To pass orders / suitable directions to the Station House Officer(SHO) to

render assistance to the applicant / Bank, to evict the occupants of the scheduled property, to break open the secured asset / premises if need be, and to deliver possession / control of the secured assets to the applicant / Petitioner / Bank.

(**Retain the applicable prayers in consultation wi th the advocate and depending on local practice, it may be accompan ied by a suitably drafted affidavit. )

4. To pass such other order as this DM may deem fit and proper in the given

facts and circumstances of the case to secure the ends of justice. Thanking you, Yours faithfully,

37

ANNEXURE VI APPENDIX – II

(RULE-4(2)

INVENTORY Inventory of movables taken possession in Loan Account bearing No. ..................................................................................................................Inventory of movable properties taken possession of at the premises of Shri/M/s. ................... Plot No. .......... / Gala No. ...................... / H. No. ...................., Street No. ..................... of ................................ under Section 13 (4) of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 and the Security Interest (Enforcement) Rules, 2002 made thereunder, on this ........................ day of ..................................................... .... 20 ..... by Shri ......................................, authorised officer of ........................................ (name of the Institution) under the said Act, between the hours ...........................am/pm. Sr No.

Description of article Estimation Value

Place where kept for safe custody (Name of the person if necessary)

Panchas: Sr No Name and address of Panch Signatures Drawn by me today the ........................ 20 ............................ at ......................am/pm. Signature of Borrower/representative Signature of Authorised Officer

38

ANNEXURE VII APPENDIX –I

[Rule-4(1)] PANCHNAMA

WHEREAS; We, Sl No Name of Panch and

Father’s/Husband’s name

Address Age Occupation

The above mentioned Panchs on being called by Shri ……….., the authorised officer of ………….. (name of the Institution), under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 and in exercise of the powers under section 13(4) of the said Act today entered the premises of Shri/M/s ……………………..at………………….and demanded the payment of the dues mentioned in the demand notice dated …………………., in respect of Loan Account bearing No……………….and on its non-payment, taken over possession of movable properties as detailed in the inventory attached to this Panchnama between the hours ……………….m. and …………..m. in our presence.

We also hereby state that during take over possession ………….. (to be filled in case of occurrence of any incidence) Therefore, we declare that the facts of the Panchnama mentioned herein are true and correct to the best of our observations and knowledge. 1. Signature Date Time Name Address 2. -do- Drawn before me Authorised Officer

Indian bank

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ANNEXURE VIII

Notice under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 - As regards taking possession of movables hypothecated and not hypothe cated to the Bank – (ABANDONMENT of items not hypothecated to the Bank) .

Place: Date: From (Name)(Designation) Authorised Officer (Office)(Address)

To Mr./Mrs./Ms./M/s. _________________(borrower/mortgagor)

Sirs,

Sub: Loan account/s ______"X"_______with Indian Ba nk..........branch – Reg

M/s.___"X"___________ availed certain facilities from us. The repayment of the said loans are secured by mortgage of certain property(ies). ______________"X"___failed to pay the outstanding to the bank and therefore was called upon to pay the amount due vide notice dated____________issued under Sec.13(2) of the Act. It was made clear that if payment is not made within 60 days, Bank will be constrained to exercise its rights by taking possession of the securities.

As _______"X"_________failed to make payment Bank took possession of the property more fully described in the schedule hereunder on _________. A copy of the possession notice is enclosed.

While taking possession, Bank has taken inventory of movables/goods/items, which were found inside the schedule-mentioned property.

**An inventory and Panchnama has been drawn for those movables/goods/items hypothecated to the Bank and found inside the schedule mentioned property as per the format prescribed in the Rules framed under the Act. A copy of the same is enclosed.

(** This para will be retained only if there are hypothecated items inside the premises which also AO has taken possession)

Bank has taken an inventory of items found inside the schedule-mentioned property, not hypothecated to the Bank. A copy of the same is enclosed/ available with the AO. You are hereby called upon to make arrangements to remove the said items not hypothecated/charged to the Bank within ………. days time. It is hereby made clear that Bank shall not be responsible for any loss/pilferage of such items. It is also made clear that Bank shall not take any insurance coverage for these items, as they are not charged/hypothecated to the Bank.

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You are at liberty to take possession of those movables at your cost and expenses at a time to be fixed in advance with the Authorised Officer. If you do not remove those movables immediately and / or within ……..days, Bank will be constrained to abandon the items without any further reference to you in this regard.

Bank will not be responsible for any insurance and / or deterioration in value of the securities. The items are kept in a separate place only in adherence to principles of natural justice, though there is no legal obligation cast on the Bank.

Take final notice to take delivery of goods within …………days of this notice, failing which Bank will be constrained to abandon all the items, for which you and you alone will be held responsible.

SCHEDULE

The specific details of the assets which has been taken possession of and which

has been let out on tenancy to be given hereunder:

Mortgaged assets Detailed description of each of the assets

subject to mortgage viz, the state, district, taluk ,

village, survey no, extent, boundaries, etc. shall

be provided. (The description shall be so

exhaustive that it will be easy for anybody to identify

and locate the property).

Yours faithfully, Authorised Officer Of Indian Bank Encl: 1. Possession Notice 2. Inventory & Panchnama taken at the time of taking possession For hypothecated assets. 3. Inventory & Panchnama taken at the time of taking possession for assets not charged/hypothecated to the Bank..

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ANNEXURE IX

Notice under Sec. 13 (4) (d) of The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Intere st Act 2002 Place: Date: From (Name)(Designation) Authorised Officer (Office)(Address)

To Mr./Mrs./Ms./M/s. _________________(tenant)

Sirs,

Sub: loan account/s _____________with Indian Bank. .........branch - Reg M/s.______________ availed certain facilities from us. The repayment of the

said loans are secured by mortgage of certain property(ies). One of the property

offered as security is ______________________(address) morefully described in

the schedule.

The outstanding dues payable by _____________ as on ____________

amounts to r.________ . Therefore, _________________was called upon to

pay the amount due viz- r._______together with interest vide notice

dated____________issued under Sec.13(2) of the Act. It was made clear that if

payment is not made within 60 days, Bank will be constrained to exercise its

rights by taking possession of the securities.

As ____________________failed to make payment Bank took possession of the

property on ___________________ . A copy of the possession notice is

enclosed.

We understand that aforesaid secured asset has been leased/rented to you. As

Bank is in possession with effect from you are hereby called upon to

make payments of rentals / amounts payable by you to the

borrower/guarantor/mortgagor to the Bank/undersigned henceforth. It is made

clear that Bank is entitled under Sec. 13(4) (d) to claim the amount payable by

you to ___________________ .

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Relevant portion of section 13 and other provision of the Securitisation and

Reconstruction of Financial Assets and Enforcement of Security Interest Act,

2002 are reproduced herewith for your immediate reference/ perusal:

13. Enforcement of security interest – (4) In case the borrower fails to

discharge his liability in full within the period specified in sub-section (2),

the secured creditor may take recourse to one or more of the following

measures to recover his secured debt, namely –

(a)….

(b)….

(c)….

(d) require at any time by notice in writing, any person who has

acquired any of the secured assets from the borrower and from

whom any money is due or may become due to the borrower, to

pay the secured creditor, so much of the money as is sufficient to

pay the secured debt.

13(5) Any payment made by any person referred to in clause (d) of sub-

section (4) to the secured creditor shall give such person a valid discharge

as if he has made payment to the borrower.

Section 29. Offences.- If any person contravene or attempts to contravene

or abets the contravention of the provisions of this Act or any such rules

made thereunder, he shall be punishable with imprisonment for a term

which may extend to one year, or with fine, or with both.

In view of the above, undersigned request you to make compliance of the

provisions of the Securitisation and Reconstruction of Financial Assets and

Enforcement of Security Interest Act, 2002 and the Security Interest

(Enforcement) Rules, 2002 and pay the rentals payable by you to the

borrower/guarantor/mortgagor to Indian Bank A/c……………………………….

with in 15 days from the date of this letter and also vacate the aforesaid premises

as said secured asset shall be put to sale under the provision of the

Securitisation and Reconstruction of Financial Assets and Enforcement of

Security Act 2002 for the recovery of dues of the Bank/ secured creditor.

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SCHEDULE

The specific details of the assets which has been taken possession of and which

has been let out on tenancy to be given hereunder:

Mortgaged assets Detailed description of each of the assets

subject to mortgage viz, the state, district, taluk ,

village, survey no, extent, boundaries, etc. shall

be provided. (The description shall be so

exhaustive that it will be easy for anybody to identify

and locate the property).

Yours faithfully,

Authorised Officer of Indian Bank

44

ANNEXURE X

NOTICE OF INTENDED SALE (Including for e-auction mode)

Notice of intended sale under Rule 6(2) & 8(6) of The Security Interest (Enforcement Rules) 2002 under The Securitisation a nd Reconstruction of Financial Assets and Enforcement of Security Intere st Act 2002

Mr./Mrs./Ms./M/s. _________________(borrower/mortgagor/guarantor) Sub: Loan account M/s.…………’X’…………. with Indian Bank

……….branch M/s ………….’X’…………. availed facilities from Indian Bank, ………….Branch, the repayment of which are secured by mortgage/hypothecation of schedule mentioned properties hereinafter referred to as “the Properties”. M/s. ……….’X’……………. failed to pay the outstanding, therefore a Demand Notice dated ……….., under Sec 13 (2) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (for short called as “The Act”), was issued by the Authorised Officer calling upon M/s. …………..’X’……….. and others liable to the Bank to pay the amount due to the tune of `…………….. (Rupees …………….. only (as on ………………) with further interest, costs, other charges and expenses thereon M/s. …………..’X’………….. failed to make payment despite Notice dated …………..

As M/s. ………….’X’………… failed to make payment despite Demand Notice, the Authorised Officer took possession of the schedule mentioned properties under the Act on …………. after complying with all legal formalities.

As per Sec.13 (4) of the Act, Secured Creditor is entitled to effect sale of the assets taken possession of and realise the proceeds towards outstanding balance. In accordance with the same, the undersigned / Authorised Officer intend selling the schedule mentioned securities in the following mode: **Please mention the mode of sale specifically – which is usually public auction / public tender/Tender cum Auction method. If it is e-auction mode, the same also to be specified as under:

The sale proposed to be held is by way of public tender / auction adopting the e-auction mode.

As per Rule 6 (2) and 8(6) of The Security Interest (Enforcement )Rules 2002 framed under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002, 30 days notice of intended sale is required to be given and hence we are issuing this notice.

The amount due as on .......................... (please mention the date upto previous month) is r............................. with further interest, costs, other charges and expenses thereon.

Please take note that this is notice of 30 days and the schedule mentioned properties shall be sold under the Act by the undersigned/Authorised Officer any time after 30 days.

45

**The date of sale is fixed as ………….. which would b e by e-auction mode.

The Inspection of the Schedule mentioned property and related documents and upto date EC may be had by the intending purchasers/bidders at his expense on ……….between ……..am to ……….pm.

The Reserve price and Earnest Money Deposit (EMD) for the sale of the secured assets is fixed as mentioned in the schedule.

The Tender/bid Form with the terms and conditions can be had on-line from the website ……………….. and using the provision in the system / software, the same could be procured using the ‘seal bid option’ such that the activities could be done online. The tender form and the terms and conditions would be available in the website from ………. (date) to ………..(date), from ….. am to ….pm. (time)

The last date for submitting tenders/bids complying with all necessary terms along with EMD in the stipulated manner is --------------by …… pm.

The tenders should be accompanied with EMD taken in DD / BPO / RTGS / NEFT / Account Transfer and / or any other acceptable mode of money transfer without time lag, failing which the tender becomes disqualified.

The Nodal Bank account No./IFSC Code etc. for online money transfer is as under:

S.No. Nodal Bank A/c No. IFSC Code

The sale shall be conferred on the person making highest offer / tender / bid subject to confirmation by Secured Creditor. The undersigned / Authorised Officer reserves right to accept or reject the bid / tender without assigning any reason whatsoever.

Once the auction / e-auction is completed and sale is conferred on the person making the highest offer / tender / bid, the successful bidder will be intimated in person / by email, as the case may be, who has to remit 25% of the bid amount (less the EMD) immediately by DD / BPO / RTGS / NEFT / Account Transfer and / or any other acceptable mode of money transfer, failing which the EMD amount remitted will stand to be forfeited.

The balance sale price shall be paid within 15 days of confirmation of sale or extended time in writing. If the balance amount is not remitted within stipulated/agreed time, the amount of 25% remitted will also stand to be forfeited.

The sale is subject to confirmation by the Secured Creditor. The sale is made on “As is where is and As is What is” basis and no representations and warranties are given by the Bank relating to encumbrances statutory liabilities etc.

**If the e-auction fails owing to any technical snag etc., the same may be re-scheduled by issuing 7 days prior notice.

***This Notice is without prejudice to any other remedy available to the Secured Creditor (this portion may be retained if it is a non-suit filed account)

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***This Notice is without prejudice to any other remedy available to the Secured Creditor and without prejudice to rights of the Secured Creditor to proceed with the proceedings presently pending before DRT/RO of DRT/ DRAT/ Court and proceed with the execution of order/decree obtained/to be obtained.

(This portion may be retained if it is a suit filed account)

SCHEDULE The specific details of the assets which are intended to be brought to sale are enumerated hereunder:

Mortgaged/ Hypothecated assets item-

wise

Detailed Description to be given

Reserve price

EMD Date,

time and place of

sale

Prior Encumbrance

Mortgaged assets

Detailed description of each of the assets subject to mortgage viz, the State, District, Taluk, Village, Survey No., extent, boundaries, etc. shall be provided. (The description shall be so exhaustive that it will be easy for anybody to identify and locate the property. The description shall reflect the identification marks/numbers etc)

Hypothecated assets

Detailed description of the hypothecated assets Viz. the nature of stocks/plant and machinery/movables, make and year of manufacturing wherever applicable, location, etc. shall be provided. (The description shall be exhaustive to enable any third party to identify the hypothecated securities) The description shall reflect the identification marks/numbers etc

**Last date and time for submission of bid through e-auction mode

One day prior to date of e-auction and mention the time upto which the bid forms can be received.

**Bidders are advised to visit the website (http://.....................................) of our e-auction service provider M/s. ………………………….. for auction bid form and detailed terms and conditions which are annexed to the bid form. The helpline No. to get assistance during the entire process is …………….. Place: Date: The Authorised Officer

(Indian Bank)

47

ANNEXURE XI Publication Sale Notice

(Including for e-auction mode)

Notice of intended sale under Rule 6(2) & 8(6) of T he Security Interest (Enforcement) Rules 2002 under The Securitisation a nd Reconstruction of Financial Assets and Enforcement of Security Intere st Act 2002

Mr./Mrs./Ms./M/s. _________________(borrower/mortgagor/guarantor)

Sub: Loan account M/S …………’X’….., with Indian Bank, branch

M/s ‘X’ availed facilities from Indian Bank, …………. Branch, the repayment of which are secured by mortgage/hypothecation of schedule mentioned properties hereinafter referred to as “the Properties”. M/s. ‘X’ failed to pay the outstanding to the bank. Therefore a Demand Notice dated ………, under Sec 13 (2) of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (for short called as “The Act”), was issued by the Authorised Officer calling upon M/s. ‘X’ and others liable to the Bank to pay the amount due to the tune of `. ……………… (Rupees ……………….. only (as on ………….) with further interest, costs, other charges and expenses thereon. M/s. …………’X’……… failed to make payment despite Notice dated …………….

As M/s. ………..’X’………… failed to make payment despite Demand notice, the Authorised Officer took possession of the schedule mentioned properties under the Act on …………… after complying with all legal formalities.

The amount due as on .......................... (please mention the date upto previous month) is `............................. with further interest, costs, other charges and expenses thereon.

**The sale proposed to be held is by way of public tender / auction adopting the e-auction mode.

The Tender/bid Form with the terms and conditions can be had on-line from the website ……………….. and using the provision in the system / software, the same could be procured using the ‘seal bid option’ such that the activities could be done online. The tender form and the terms and conditions would be available in the website from ………. (date) to ………..(date), from ….. am to ….pm. (time)

The last date for submitting tenders/bids complying with all necessary terms along with EMD in the stipulated manner is --------------by …… pm.

The tenders/bids shall be opened on_____ in the e-auction mode. (Ensure that this date is 30 days after the date of publication of Notice). Inspection of the scheduled properties and related documents / up to date EC etc. by the intending purchasers /bidders may be done at their expense on ……….between …..am to……..pm.

The Reserve price and Earnest Money Deposit (EMD) for the sale of the secured assets is fixed as mentioned in the schedule. The sealed tenders should be accompanied with EMD taken in DD / BPO / RTGS / NEFT / Account Transfer

48

and / or any other acceptable mode of money transfer without time lag, failing which the tender becomes disqualified.

The Nodal Bank account No./IFSC Code etc. for online money transfer is as under:

S.No. Nodal Bank A/c No. IFSC Code

The sale shall be conferred on the person making highest offer / tender / bid subject to confirmation by Secured Creditor. The Authorised Officer reserves right to accept or reject the bid / tender without assigning any reason whatsoever. Once the auction / e-auction is completed and sale is conferred on the person making the highest offer / tender / bid, the successful bidder will be intimated in person / by email, as the case may be, who has to remit 25% of the bid amount (less the EMD) immediately by DD / BPO / RTGS / NEFT / Account Transfer and/ or any other acceptable mode of money transfer, failing which the EMD amount remitted will stand to be forfeited.

The balance sale price shall be paid within 15 days of confirmation of sale or extended time in writing. If the balance amount is not remitted within stipulated/agreed time, the amount of 25% remitted will also stand to be forfeited.

The sale is subject to confirmation by the Secured Creditor.

In the case of movable property/ies the sale price to be paid as agreed to/as per terms of sale published. The Authorised Officer reserves right to accept or reject the tender/bid/offer without assigning any reason therefor.

**** The Bank is aware of the following prior encumbrances as enumerated in the schedule.(****This portion may be included and details given if any prior encumbrance is known)

The sale is made on “As is where is and As is What is” basis and no representations and warranties are given by the Bank relating to encumbrances statutory liabilities etc.

**If the e-auction fails owing to any technical snag etc., the same may be re-scheduled by issuing 7 days prior notice.

*** This Notice is without prejudice to any other remedy available to the Secured Creditor. (This portion may be retained if it is a non-suit filed account)

***This Notice is without prejudice to any other remedy available to the Secured Creditor and without prejudice to rights of the Secured Creditor to proceed with the proceedings presently pending before DRT/RO of DRT/ DRAT/ Court and proceed with the execution of order/decree obtained/to be obtained.

(This portion may be retained if it is a suit filed account)

49

SCHEDULE The specific details of the assets which are intended to be brought to sale are enumerated hereunder:

Mortgaged/ Hypothecated assets item-

wise

Detailed Description to be given

Reserve price

EMD Date,

time and place of

sale

Prior Encumbrance

Mortgaged assets

Detailed description of each of the assets subject to mortgage viz, the State, District, Taluk, Village, Survey No., extent, boundaries, etc. shall be provided. (The description shall be so exhaustive that it will be easy for anybody to identify and locate the property. The description shall reflect the identification marks/numbers etc)

Hypothecated assets

Detailed description of the hypothecated assets Viz. the nature of stocks/plant and machinery/movables, make and year of manufacturing wherever applicable, location, etc. shall be provided. (The description shall be exhaustive to enable any third party to identify the hypothecated securities) The description shall reflect the identification marks/numbers etc

**Last date and time for submission of bid through e-auction mode

One day prior to date of e-auction and mention the time upto which the bid forms can be received.

**Bidders are advised to visit the website (http://.....................................) of our e-auction service provider M/s. ………………………….. for auction bid form and detailed terms and conditions which are annexed to the bid form. The helpline No. to get assistance during the entire process is …………….. Place: Date:

The Authorised Officer (Indian Bank)

50

ANNEXURE XII

TENDER DOCUMENTS FORMAT

A

Authorised Officer

……………………. ……………………..

A/C …………………………………….. With

Indian Bank …………………. branch

TENDER/BID DOCUMENT FOR SALE (including for e-auction )

Authorised Officer Indian Bank,

………………………. …………………………

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In exercise of powers conferred under Section 13 of Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 (In short ‘SARFAESI Act’), the Authorised Officer for the A/c ………………….. of …………. branch of Indian Bank issued a Demand Notice dated …………….. under sec 13(2) of the SARFAESI Act calling upon the borrower/guarantor/mortgagor in the above account to pay the amount due to the tune of r …………………….. (Rupees ……………………………………. only) (as on ………………..) with further interest and other charges thereon. As M/s. ………………………. failed to make payment despite Demand Notice, the Authorised Officer took possession of the property (more fully described in Annexure A) under SARFAESI Act on …………………, after complying with all legal formalities. The Authorised Officer is entitled to sell the properties by virtue of powers conferred on him under sec 13(4) of SARFAESI Act read with Rule 9 framed under the said Act. Sale is intended to be carried out by inviting tenders/bids from public. The necessary Notice of Intended Sale was published in …………Newspapers on …………….Accordingly, tenders/bids are called from intending purchasers. The details are furnished below: Definitions: 01. 'Property’ is the mortgaged and hypothecated items offered for sale more

fully described in Annexure A 02. ‘Seller’ of the property is Authorised Officer, Chief Manager, Indian Bank,

…………………. 03. The term ‘tender’ wherever used shall also mean and include 'bid', 'offer' or

similar terms which convey the same meaning. 04. 'Tender document' comprises the terms and conditions of the tender, the

Tender form, the Schedule of the property, Model letters if any to be submitted and other terms and conditions etc., including the terms and conditions for e-auction enclosed along with the bid / tender form wherever applicable.

05. ‘Designated place’ is the place at which the tender documents can be had,

the completed tenders will be received and the received tenders will be opened by the Seller, in any mode including e-auction viz., ………………………………….

06. 'Tenderer' is the person who submits his tender for purchase of the property

by quoting the price offered by him and therefore participants in the tender cum auction mode. This may be an individual, HUF, Partnership firm, private or public limited company or a statutory corporation. 'Tenderer' shall also mean and include 'Offerer'', 'Bidder' or similar terms which convey the same meaning.

52

07. 'Representative' is the person authorised by the Tenderer to submit the tender document on his behalf. Such Representative may either hold a Power of Attorney issued in his name by the tenderer or authorised by the tenderer through a specific letter, attesting the signature of the Representative.

08. ‘Tender opening date and time’ shall mean the date on which and the time at

which the various tenders received shall be opened by the Seller at the 'designated place'

09. ‘Tender Amount' is the amount mentioned in the Tender form submitted by

the Tenderer and later on increased in the tender cum auction mode amongst the eligible tenderers. The eligible tenderers are those who have quoted their bid / tender / offer amount ABOVE Reserve Price.

10. 'Price' is the amount at which the Seller accepts to sell the property after

opening all the tenders and verifying other documents and adopting the tender cum auction process in the discretion of Authorised Officer.

11. ‘Successful Tenderer’ is the Tenderer who has submitted the highest bid

amount and /or who has quoted the highest bid amount in the tender cum auction mode.

12. 'Second successful Tenderer ' is the Tenderer, other things remaining the

same, whose quoted amount is next below the amount quoted by the Successful Tenderer as mentioned in the Para 11.

13. 'Acceptance date' is the date of letter communicating acceptance of the

Tender by the seller to the successful Tenderer or the second successful Tenderer as the case may be.

14. 'Purchaser' is the ‘Tenderer' whose bid / offer amount has been accepted by

the Seller and who has not rescinded performance within the time limit allowed in the acceptance letter.

15. Wherever the pronoun 'he' and its related verbs are used, it also implies and

includes 'she' as well as the plural form. Property 1. It consists of the mortgaged and hypothecated properties more fully described

in Annexure A. Inspection:

2. The property can be inspected by the intending Tenderer on

…………………at his expense between ……………. am to ………….pm at the addresses mentioned in the Annexure A. Inspection of documents / EC etc. can be also done by intending tenderers on ............... between .................(time).

53

Terms of Warranty: 3. 'THE TENDERER SHALL HAVE TO VERIFY THE POSITION REGARDING

THE TAX AND OTHER CHARGES PAID/PAYABLE, INSURANCE, ETC. from the documents available at the designated place before submitting the Tender. No claims shall be entertained in this regard after the Tenders are opened

4. The Seller does not give any warranty as to the description, condition or

accuracy of details regarding the property given in the schedule. The Tenderer is to satisfy himself as to the title of the property as well as the identity and correctness of the description of the property and the measurements and boundaries of the same and subsisting encumbrances / statutory liabilities etc. before submitting the tender.

5. Once he submits his tender, he will be deemed to have waived all objections

to the title, extent or any other aspect, if any afterwards. THE SUCCESSFUL TENDERER SHALL NOT BE PERMITTED TO REFRAIN FROM PERFORMING HIS OBLIGATION BY REASONS OF ANY ERROR OR DEFAULT IN DESCRIPTION THEREOF IN THE SCHEDULE HERE TO OR REGARDING THE TITLE THERETO AND/OR FOR ANY OTHER RE ASON. THE SALE SHALL NOT BE INVALIDATED BY SUCH REASONS AND NO COMPENSATION SHALL BE PAYABLE IN RESPECT OF ANY SUCH DEFAULT OR ERROR OR MISDESCRIPTION.

6. The sale is on ‘as is where is and as is what is’ basis and without any

representations and warranties on the part of the Secured Creditor relating to encumbrances/ statutory liabilities etc.

Submission of Tender:

7. The tender document can be obtained from the designated place of the Seller between ………… a.m. and …………. p,m, on weekdays and between ………… am and ………. p.m. on Saturday excluding holidays.

The issue of tender document will be up to ……………………(date & time)

Wherever e-auction mode is adopted, the Tender/bid Form with the terms and conditions can be had on-line from the website ……………….. and using the provision in the system / software, the same could be procured using the ‘seal bid option’ such that the activities could be done online. The tender form and the terms and conditions would be available in the website from ………. (date) to ………..(date), from ….. am to ….pm. (time)

8. The tenderer shall be legally eligible to buy a property in the Union of India. 9. Separate tender document is to be used for the property for each

property/item/lot described in the sale notice.

54

10. If the tender is submitted by a person who is not an individual, the details relating to constitution must be specified

11. When the tenderer is other than an individual, the capacity of the signatory

shall be indicated along with rubber stamp of the organisation, on whose behalf the tender is submitted

12. If the tender is submitted through a Power of Attorney holder (POA holder) or

an authorised representative, proof of such authorisation should be enclosed. However, in case of successful tenderer, the property would be transferred in the name of the tenderer only and not in the name of such POA holder or authorised representative.

13. The tender amount must be filled in both in words and in figures in the

TENDER form, failing which the tender can be rejected. When there is a difference in the amount stated in figures and in words, the amount stated in words shall prevail.

14. All corrections must be attested under the full signature of the tenderer with

date of such corrections. 15. Complete address of the tenderer must be given in block letters. Telephone

numbers, telegraphic address. e-mail address. etc., may also be furnished. 16. If the tender is submitted on behalf of an organisation, the name, designation

and telephone numbers of the contact person, if any, shall also be given. 17. The Reserve Price for each of the property/item and the respective Earnest

Money Deposit for each of the property/item is enumerated in Annexure A.

18. Earnest Money Deposit (EMD) as specified for each item in the Annexure A shall be remitted along with the tender document.

The tenders should be accompanied with EMD taken in DD / BPO / RTGS/NEFT / Account Transfer and / or any other acceptable mode of money transfer without time lag, failing which the tender becomes disqualified.

The Nodal Bank account No./IFSC Code etc. for online money transfer is as under:

S.No. Nodal Bank A/c No. IFSC Code

The Demand Draft / Pay Order shall not be dated earlier than the Notice of intended sale and shall be payable in …………………..only. Money Orders / Cash/ Postal Orders, personal cheque / bank guarantees. etc. shall not be accepted in lieu of Demand Draft / Bankers' Pay Order except the manner specified above

55

19. The Tender Price shall be quoted in absolute terms and shall not be linked to any other reference. The tender must be unconditional.

20. Correct and complete information is to be furnished while submitting the

tender. Furnishing incorrect / false information relating to any material fact and / or failure to enclose any required document may cause the tender to be rejected at the discretion of the Seller. The details furnished in the Tender shall be duly witnessed atleast by two persons, who would affix their signature, name and address at the space provided for the same.

21. Tenders complete in all respects along with EMD and other enclosures shall

be submitted in a sealed cover addressed to Authorised Officer, Chief Manager, Indian Bank, A/c ………………………………………

Whenever e-auction mode is adopted, tender form shall be submitted with complete particulars as indicated in clause No. 7.

22. The sealed cover shall be super scribed with the words "TENDER FOR

PURCHASE SUBMITTED IN RESPONSE TO ADVERTISEMENT DATED …………………. FOR PROPERTY/ITEM NO……. (details of each of the property/item to be given)".

23. Submission of Tenders: The sealed covers shall be submitted at the

designated place before …………. p.m. on …………………. The sealed covers can either be hand delivered at the designated place or be sent by Post I courier. Tenders sent by post I courier will be considered only if the same is received at the designated place within the stipulated time and the date of posting I dispatch shall not be a proof of delivery. Tenders received after the stipulated date and time will not be considered.

Whenever e-auction mode is adopted, tender form shall be submitted with complete particulars as indicated in clause No. 7.

24. Withdrawal of tenders: A tenderer may be permitted to withdraw the tender

submitted by him at any time before the final time fixed for opening of the tenders. However request for withdrawal of the tender shall be made in writing by the tenderer himself and should be submitted at the designated place before the time limit fixed. The same applies to a Representative also.

Tender opening: 25. The received tenders will be opened at ……………. p.m. on ……………. by

Authorised Officer, Chief Manager, Indian Bank……………………………at the Designated Place. Any tenderer if he so desires may be present during the tender opening either personally or through his authorised representative and / or any other manner stipulated in the e-auction mode and its related terms and conditions enclosed with the bid form.

26. The amount quoted in each tender will be read for information of all those present at the tender opening. The amount shall also be entered in the tender

56

opening register, against the tenderer's name.

27. After all the tenders are opened, read out and entered in the tender opening register, tenderers I their representatives present at that time, shall affix their signatures thereon as a token of confirmation of the prices read out.

28. Subsequently, the intending bidders who have submitted their bid above the

reserve price will be given an opportunity at the sole discretion of the Authorized Officer to have an interse bidding among themselves immediately on opening of the tenders on the same date and venue. At that juncture, the floor price for inter-se bidding would be the highest price quoted at the time of opening of the tender / bid.

The sale shall be conferred on the person making highest offer / tender / bid subject to confirmation by Secured Creditor. The undersigned reserves right to accept or reject the bid / tender without assigning any reason therefor.

The tenders would be processed immediately at the office of the Seller and the successful bidder will be finalised. It shall be subject to confirmation by the Secured Creditor. Secured Creditor will confirm the sale only after ensuring that initial payment of 25 % of sale price is paid/deposited immediately by way of by DD / BPO / RTGS / NEFT / Account Transfer and / or any other acceptable mode of money transfer, failing which the EMD amount remitted will stand to be forfeited.

Acceptance of Tender: 29. The Seller is not bound to accept the highest bidder automatically, The Seller

reserves the right to reject any or all the tenders without assigning any reasons there for. The Seller reserves the right at his discretion to defer/cancel the tender process at any time or to call for fresh set of tenders or to withdraw, any or all the items listed in the schedule of property from sale.

30. As soon as tender cum auction process is finalised, the successful tenderer/bidder will be informed before …………………… (time) on the same date. A letter of acceptance of the tender / bid will be given to the successful tenderer / bidder to enable him to deposit 25% of the sale price immediately, as stated supra. Once the e-auction is completed and sale is conferred on the person making the highest offer / tender / bid, the successful bidder will be intimated by email, who has to remit 25% of the bid amount (less the EMD) immediately by DD / BPO / RTGS / NEFT / Account Transfer and / or any other acceptable mode of money transfer, failing which the EMD amount remitted will stand to be forfeited.

31. Sale is subject to confirmation by the Secured Creditor. Secured Creditor will confirm the sale only after ensuring that initial payment of 25 % of sale price is paid/deposited immediately as stated supra.

57

32. The EMD deposited by the successful tenderer / bidder shall be held as

Security Deposit for due performance of the contract. Successful tenderer shall deposit the balance amount within 15 days of confirmation of the sale by the Secured Creditor or within the extended period as agreed between the parties in writing. Payment of balance amount of 75% will also have to be made in the form indicated above in clause No.30.

If the balance amount is not remitted within stipulated /agreed time, the amount of 25% remitted will also stand to be forfeited.

33. No time extension for making the payment after the stipulated period will be granted nor shall the successful tenderer / bidder be allowed to make part payments. However the Seller may, in his discretion, entertain and consider request for extension of time for making payment provided the request has been made in writing and duly signed by the successful Tenderer I bidder Representative himself.

34. Failure to deposit the balance amount within such stipulated time or within such extended time shall be construed as breach and the EMD and initial deposit paid by the successful tenderer / bidder shall be forfeited.

35. If the successful tenderer do not deposit 25% of the purchase price

immediately on conveyance of acceptance letter, it is open to the Seller to confer the sale on the second successful tenderer / bidder.

36. If the Seller decides to accept the tender of the second successful tenderer/ bidder, either upon failure of the successful tenderer / bidder or otherwise, the same shall be intimated to the second successful tenderer / bidder. The terms and conditions regarding deposit of balance amount, forfeiture as stated in paras ………… to ………….. shall apply mutatis mutandis to the second successful tenderer / bidder also.

37. Upon breach by the successful tenderer / bidder or, in case of acceptance of

tender / bid of the second successful tenderer / bidder, upon his breach, the Seller may decide to sell the property by calling for fresh tenders or through private sale or otherwise.

38. If the e-auction fails owing to any technical snag etc., the same may be re-

scheduled by issuing 7 days prior notice.

39. The EMD given by the tenderers other than the Successful Tenderer / bidder and l or the second successful tenderer / bidder, shall be returned to them by post I courier within a reasonable time.

Transfer of property: 40. On confirmation of sale by the Secured Creditor and upon payment of the full

amount of Purchase Price, the Authorised Officer will execute the Sale Certificate in favour of the Purchaser. The registration charges, payment of

58

stamp duty etc shall be borne by the purchaser.

41. It will be the responsibility of the Purchaser to take all steps necessary for registration of the sale certificate .

42. The cost towards registration fee, expenses incurred towards stamp duty etc

and any other expenses will be borne by the Purchaser. The Seller will not bear any expenses whatsoever.

43. It will be the responsibility of the Purchaser to pay all taxes I electricity I waterI

sewerage charges or any other charges demanded by any authority after the acceptance of the tender, even if it pertains to previous periods.

44. The Purchaser shall, at his cost, get the Electricity I Water I Sewerage

connections etc. and any other common services, transferred in his name.

45. It will be responsibility of the Purchaser to deal with claims I disputes or litigation if any relating to the property, its use or otherwise after acceptance of the tender and shall meet such claims for charges, penalty, damages etc. at his own cost. The Seller will not accept any claim or responsibility on this account and shall not be held accountable for this and shall not be asked to pay I reimburse any amount in this regard.

46. In token of having read, understood and accepted the terms and conditions,

the tenderer, or his representative, as the case may be, shall affix his full signature at the end of each page of the tender document. Wherever applicable, the office stamp shall also be affixed along with the signature.

STATION: DATE

59

TENDER FORM To

Authorised Officer Chief Manager, Indian Bank, ………………

Sir. Sub: A/c ………………………………….. - Submission of Tender fo r

purchase of Property / Item No……

Ref: Your advertisement dated ………………… in '……………….'

I I We submit my / our tender for purchase of Property /Item No…….offered by you on outright sale basis , which is on ‘As is where is and As is what is’ basis. I I we furnish the necessary details as below: 1. Name of Tenderer

2. Constitution*

3. Address and telephone number for communication

4 Name, Address and telephone number of contact person, if any. for communication

5 Description of the Property/item for which tender is submitted

6 Tender amount In figures – r. In words – Rupees

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7. EMD r.………..(figures) (Words)

Details of EMD payment DD/ BPO / RTGS / NEFT/Account Transfer and / or any other acceptable mode of money transfer without time lag –preferably by RTGS / NEFT”. Date : Issued by : On : Favouring :

# Mention Individual / HUF / Proprietary Concern l Partnership firm I Private Limited Company / Public Limited Company I/ we have read and understood the terms and conditions of sale and verified the other particulars regarding the property being offered for sale through this tender. I / We have further understood that the sale is being made on ‘As is where is and As is what is’ basis and also without any representations and warranties from the Bank on encumbrances, statutory liabilities etc. I / we have signed the tender document as required therein. I / we agree to abide by the terms and conditions for sale. I / we have enclosed all documents as required to be submitted along with this tender. I / we, am / are fully aware and agree that the Seller shall have the sole right either to accept or reject the tender without assigning any reason. Yours faithfully,

Signature of the Tenderer Witnesses: 1. Signature, Name & Address 2. Signature, Name & Address NOTE: Please read the terms and conditions for sale of the property as mentioned in the tender document before filling up and submitting the tender. Furnish correct and complete information. Furnishing incorrect I false information relating to any fact and l or failure to enclose any required document, which may materially affect the selection of the tender, may cause the tender to be rejected. Whether any such fact /information is material or not, is subject to the facts and circumstances of the case and shall be decided by the Seller at his sole discretion which shall be final and binding.

61

ANNEXURE A

Mortgaged and Hypothecated assets item-

wise

Description Extent with full

details to be given

Reserve price

EMD

**Last date and time for submission of bid in e-auction mode

One day prior to date of e-auction and mention the time upto which the bid forms can be received.

**Bidders are advised to visit the website (http://.....................................) of our e-auction service provider M/s. ………………………….. for auction bid form and detailed terms and conditions which are annexed to the bid form. The helpline No. to get assistance during the entire process is ……………..

Place: Date : Authorised Officer

Indian Bank

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ANNEXURE XIII

ACCEPTANCE LETTER TO BE GIVEN BY THE AO TO THE SUCC ESSFUL BIDDER From, Authorised Officer Indian Bank ………………….. ………………….. To Mr./Ms. / M/s. ……………… ……………………………….. Sub: Loan A/c ……………………..with ……………………..branch – auction sale of movable / immovable properties (securities) conducted on …….. With reference to the above, in the captioned account the movable / immovable properties (securities) offered as securities, more fully described in the schedule hereunder, were brought for sale under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) on …………………… **The Hon’ble High Court of …………………/ DRT……………………….passed an order dated …………………in WP No. ……………/ Securitisation Appeal No…………………….., which reads as under:

“Sealed Tenders can be opened but sale shall not be confirmed…………” (Please incorporate the correct/exact wordings as contained in the interim order, the above wordings are only indicative and not exhaustive)

**The said order was made available/circulated to all the participating tenderers and acknowledged too. The sale has been conducted subject to confirmation by the Bank and **subject to outcome of the Court proceedings before …………… Also take note that the sale is on ‘as is where is and as is what is basis’, without any representations and warranties on the part of the Bank for any encumbrances / statutory liabilities etc. The tender submitted by your goodself was the highest tender, pursuant to opening of the tender and / or the e-auction conducted thereafter and this letter of acceptance is given to you as the successful bidder. You are hereby called upon to remit 25% of bid amount (less the EMD 10%) immediately, failing which please take note that the bid will be accepted / conferred on the second successful bidder and you will stand to forfeit the EMD. Please take note that further steps of confirmation of sale will be taken only after remittance of the 25%

63

amount and the sale is subject to confirmation by the Bank / **further orders of the Court which will be intimated in due course. This letter of acceptance of bid / tender is not sale confirmation letter and is issued without prejudice to other terms and conditions of the Tender / Bid document / auction.

SCHEDULE The specific details of the assets brought to sale are enumerated hereunder:

Mortgaged/ Hypothecated assets item- wise

Detailed Description to be given

Mortgaged assets

Detailed description of each of the assets subject to mortgage viz, the state, district, taluk, village, survey no, extent, boundaries, etc. shall be provided. (The description shall be so exhaustive that it will be easy for anybody to identify and locate the property. The description shall reflect the identification marks/numbers etc)

Hypothecated assets

Detailed description of the hypothecated assets Viz. the nature of stocks/plant and machinery/movables, make and year of manufacturing wherever applicable, location, etc shall be provided. (The description shall be exhaustive to enable any third party to identify the hypothecated securities) The description shall reflect the identification marks/numbers etc

Authorised Officer Indian Bank

** This portion with (**) may be retained wherever interim orders are passed pertaining to sale.

64

ANNEXURE XIV LETTER OF CONFIRMATION TO BE GIVEN BY THE AO

TO THE SUCCESSFUL BIDDER From, Authorised Officer Indian Bank ………………….. ………………….. To Mr./Ms. / M/s. ……………… ……………………………….. Sub: Loan A/c ……………………..with ……………………..branch – auction sale of movable / immovable properties (securities) conducted on …….. With reference to the above, in the captioned account the movable / immovable properties (securities) offered as securities more fully described in the schedule hereunder, were brought for sale under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act) on …………………… **The Hon’ble High Court of …………………/ DRT……………………….passed an order dated …………………in WP No. ……………/ Securitisation Appeal No…………………….., which reads as under:

“Sealed Tenders can be opened but sale shall not be confirmed…………” (Please incorporate the correct/exact wordings as contained in the interim order, the above wordings are only indicative and not exhaustive)

**The said order was made available/circulated to all the participating tenderers and acknowledged too. The sale has been conducted subject to confirmation by the Bank and **subject to outcome of the Court proceedings before …………… Also take note that the sale is on ‘as is where is and as is what is basis’, without any representations and warranties on the part of the Bank for any encumbrances / statutory liabilities etc. The tender submitted by your goodself was the highest tender pursuant to opening of the tender and / or the e-auction conducted thereafter and on acceptance of your tender, you have remitted 25% of the bid amount. We are glad to inform you that the sale is confirmed in your favour by the Bank and you are advised to remit the balance 75% of the bid amount within 15 days of this

65

confirmation letter, failing which the 25% remitted by you would be forfeited forthwith.

SCHEDULE The specific details of the assets brought to sale are enumerated hereunder:

Mortgaged/ Hypothecated assets item- wise

Detailed Description to be given

Mortgaged assets

Detailed description of each of the assets subject to mortgage viz, the state, district, taluk, village, survey no, extent, boundaries, etc. shall be provided. (The description shall be so exhaustive that it will be easy for anybody to identify and locate the property. The description shall reflect the identification marks/numbers etc)

Hypothecated assets

Detailed description of the hypothecated assets Viz. the nature of stocks/plant and machinery/movables, make and year of manufacturing wherever applicable, location, etc shall be provided. (The description shall be exhaustive to enable any third party to identify the hypothecated securities) The description shall reflect the identification marks/numbers etc

Authorised Officer Indian Bank

** This portion with (**) may be retained wherever interim orders are passed pertaining to sale.

66

ANNEXURE XV

FORMAT OF THE LETTER TO BE GIVEN BY THE AUCTION PUR CHASER TO ISSUE SALE CERTIFICATE IN THE NAME OF NOMINEE

From Sh………………….. ……………............. To The Authorised Officer ………………… Dear Sir,

Sub: Property sold under SARFAESI in the loan Accou nt of Sh………....... With reference to the above, you, the Authorised officer of Indian Bank have conducted sale of securities viz., ……………………………….(mention the full particulars of securities ) on ……………under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act 2002) read with Security Interest (Enforcement) Rules in the captioned account. I……………………. have submitted the tender/bid document quoting r. ……………as the bid amount. The said tender was accepted by you as the highest tender pursuant to opening of the tender and / or the e-auction conducted thereafter and after receiving the sale confirmation from your end, on …………….. I have remitted the full sale proceeds towards the bid amount on ……………………….. according to the terms of the bid / tender / auction. I hereby request you to issue the Sale Certificate and register the same in the name of Mr. / Ms. .……… (Third Party) my nominee, at my risk and responsibility I undertake and confirm that I I relinquish all my rights and claims over the said property in favour of Mr./Ms/.M/s.………………………. (Third Party) my nominee and I will not raise any dispute / any other claim in this regard in future at any point of time. I will not raise any dispute in this regard and undertake to keep the Bank harmless and indemnified against any possible loss, damage, cost, claim or expenses which the Bank may suffer or to pay in consequences of its having issued & registered Sale Certificate in the name of my nominee Mr./Ms./ M/s. ……………(Third Party), on my request. I further undertake that in the event of the cancellation of the sale of the subject property on a future date by any Court of Law / Tribunal due to the reason of the issuance/registration of the Sale Certificate in the name of my nominee (Third Party), on my request, any consequences that flow there from on such cancellation of sale will be at my own risk and responsibility and no liability / responsibility whatsoever will be fastened on the Bank and Bank stands discharged in entirety. Yours faithfully, ……………….. (Signed by Auction Purchaser)

67

ANNEXURE XVI APPENDIX III

[See Rule 7 (2)] CERTIFICATE OF SALE (For movable property)

Whereas The undersigned being the authorised officer of the ………………….(name

of the Institution) under The Securitisation and Reconstruction of Financial

Assets and Enforcement of Security Interest Act 2002 and in exercise of the

powers conferred under sub-section (12) of section 13 read with Rule 6 of the

Security Interest (Enforcement) Rules, 2002 has in consideration of the payment

of r.…………. (Rupees ……………..) sold on behalf of the ………………(name of

the secured creditor/ institution) in favour of …………… (purchaser), the following

movable property secured in favour of the ………… (name of the secured

creditor) by ………………. (the names of the borrowers) towards the financial

facility ……. (description) offered by ……………….(secured creditor). The

undersigned acknowledge the receipt of the sale price in full and hand over the

delivery and possession of the items listed below.

Description of the movable property .

Authorised Officer Indian Bank

Date ……………. Place……………

68

ANNEXURE XVII APPENDIX V

[See rule 9 (6)] CERTIFICATE OF SALE (for immovable property)

Whereas The undersigned being the authorised officer of the ………………….(name

of the Institution) under the Securitisation and Reconstruction of Financial Assets

and Enforcement of Security Interest Act 2002 and and in exercise of the powers

conferred under sub-section (12) of section 13 read with Rule 8 and 9 of the

Security Interest (Enforcement) Rules, 2002 sold on behalf of the

………………(name of the secured creditor/ institution) in favour of ……………

(purchaser), the immovable property show in the schedule below secured in

favour of the …………….. (name of the secured creditor) by ………………. (the

names of the borrowers) towards the financial facility ……. (description) offered

by ……………….. (secured creditor). The undersigned acknowledge the receipt

of the sale price of r ….……………(Rupees ………. only) and handed over the

delivery and possession of the scheduled property. The sale of the scheduled

property was made free from all encumbrances known to the secured creditor

listed below on deposit of the money demanded by the undersigned.

Description of the immovable property. ________________________________________________________________ All the part and parcel of the property consisting of Flat No………./ Plot No……… In survey No…………./ City or Town Survey No…………/ Khasra No……….within The registration sub-district…………… and district………….. Bounded: On the North by On the South by On the East by On the West by ________________________________________________________________ List of encumbrances 1. 2.

Authorised Officer Indian Bank

Date ……………. Place……………

69

ANNEXURE XVIII

DETAILS OF ACCOUNT WHEREIN MEASURES HAVE BEEN TAKEN UNDER SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSE TS AND ENFORCEMENT OF SECURITY INTEREST ACT - TO BE MAINT AINED AND UPDATED AT ZONAL OFFICES

1. Zone and Branch

2. Name of the Borrower

3. Constitution

4. Name of the Partners / Directors

5. Name of the Guarantors

6. Name of Mortgagors

7. Group Accounts

8. Details of security

9. The latest available value of

securities and copy of latest EC /

Reports

10. Date of filing suit and Name of the Court

11. Suit Amount

12. PB MOI

Legal expenses

13. Name of the advocate

14. Present position of the case

15. Amount of recovery if any after

filing suit/ OA

16. Related Proceedings if any

17. Name of AO and Designation

18. Date of his authorisation (Copy of

Authorisation letter to be obtained)

19. Date of issuance of Demand Notice under the Act

20. Total dues as on date of issuance of Demand Notice under the Act.

21. Whether Notice served by ordinary means

70

22. Whether Notice served by

publication and affixation – if so,

date of publication of demand

notice

*60 day waiting period starts from

date of serving of notice or

publication.

23. Particulars of acknowledgement of notice by Borrowers / Guarantors /

Mortgagors

24. Date of taking possession

25. Whether the property was in possession of the mortgagor or let

out to tenants

26. Nature of possession taken - Whether actual or symbolic /

constructive possession

27. Steps taken at the time of taking possession

28. Whether any steps taken to

recover/ receive the rentals from

tenants by issuing Sec.13(4) (d)

notice

29. Date of publication of possession notice (Copy to be maintained for

records)

30. Details of dailies in which it is

published

31. Whether the assistance of

specialised agencies / Resolution

Agents taken if yes, give the name

of the agency and purpose

32. Cost incurred up to the time of taking possession with break up –

covering Boards, banners, Paper

publication, photos, transport,

security, inventory etc.

33. Response of the borrower if any after issuance of notice / taking

possession

34. Whether any stay or interim order obtained by the borrower from

High Court/DRT/any other legal

forum - if so, its details

71

35. Recovery if any effected after issuance of demand notice / taking

possession

36. Details of recurring cost to be incurred monthly with breakup –

Insurance premium, security etc.

37. Date of notice of intended sale and date of publication of the same

*There is no time lag in issuing the

notice of intended sale. The

waiting period of 30 days is for

conduction of sale – which starts

from date of serving of Notice of

intended sale or its publication as

the case may be.

38. Date of porting in the website(s) – Bank’s website; tenders.gov.in and

the website of the service provider

when it is e-auction mode.

**AO and the branch should

ensure that th date on which the

publication is effected in the

newspapers, the sale notice is

ported in the website(s) also.

39. Date of sale fixed / indicated in the sale notice

40. The Reserve Price / EMD / Terms of sale for each of the item.

41. The date for submission of

tenders.

42. The date of opening of tenders / date of e-auction (already should

have been stipulated in column

No.39)

43. Outcome of sale through

quotation/ tender/private

treaty/auction and amount of sale

price received

44. Details of successful bidder / auction purchaser with minutes of

the auction sale preserved.

45. Date of receipt of 25% bid amount from the successful bidder and

details thereof.

46. Date of confirmation of sale

47. Date of receipt of 75% of the bid amount from the successful bidder

and the details thereof.

48. Date of issuance of sale certificate

49. Date of registration of sale

certificate

50. Any other remarks

72

ANNEXURE XIX

APPENDIX VI

FORM (See Rule 11(1))

Application under sub-section (10) of section 13 of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002. For use in Office. Date of filing ………………. Date of receipt by post…… Registration No……………

Signature Registrar

IN THE DEBTS RECOVERY TRIBUNAL (NAME OF THE PLACE)

Between

A.B.

Applicant And

C.D. Defendant

Delete whichever is not applicable

Details of the Application:

1. Particulars of the applicant (i) Name of the applicant : (ii) Address of Registered Office : (iii) Address for service of all notices : 2. Particulars of the (defendant) (i) Name of the (defendant) : (ii) Office address of the (defendant) : (iii) Address for service of all notices : 3. Jurisdiction of the Tribunal. –The applicant declares that the subject-matter of the recovery of debt due falls within the jurisdiction of the Tribunal. 4. Limitation.- The applicant further declares that the application is within the limitation

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Prescribed in section 24 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. 5. Facts of the case.- The facts of the case are Given below: (Give here a concise statement of facts in a chronological order, each paragraph containing as nearly as possible a separate issue, fact or otherwise.) 6. Details of recoveries made by sale of securities:- (Give here securitywise details of sale/s conducted and realiszations, appropriations of sale proceeds towards, costs, interest and principal amount and the balance amount to be recovered.) 7. Relief sought.- In view of the facts mentioned in Para 5 above, the applicant prays for the following relief(s):- (Specify below the relief(s) sought explaining the ground for relief(s) and the legal provisions (if any relied upon) 8. Interim order, if prayed for.- Pending final decision on the application, the applicant seeks issue of the following interim order: (Give here the nature of the interim order prayed for with reasons.) 9. Matter not pending with any other Court, etc.- The applicant further declares that the matter regarding which this application has been made is not pending before any Court of law or any other authority or any other Bench of the Tribunal. 10. Particulars of Bank Draft/Postal Order in respect of the application fee:- (1) Name of the Bank on which drawn : (2) Demand Draft No. :

or

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(1) Number of Indian Postal Order(s) : (2) Name of the Issuing Post Office : (3) Date of issue of Postal Order(s) : (4) Post Office at which payable : 11. Details of Index.-An index in duplicate containing the details of the documents to be relied upon is enclosed. (Such documents should include copies of sale certificates or any other documents relating to sale of secured assets and sale proceeds realised.) 12. List of enclosures.-

VERIFICATION

I,………(Name in full and block letters), son/daughter/wife of Shri………………being the ……..(designation)……(name of the company) holding a valid power of attorney from ……..(name of the company) do hereby verify that the contents of Paras 1 to 11 are true to my personal knowledge and belief and that I have not suppressed any material facts.

Signature of the Applicant Place: Date: To: The Registrar ……….. …………