Seizure of property by Bank
Hi, there was a theft and damage of movable property and goods hypothecated to bank/financial institution after seized by the bank and kept in their custody(Bank has taken the possession).Has the Movable property and goods of high value hypothecated which alone if were liquidated would have squared off the loan outstanding of the bank and would have left the our company in surplus bank did not accept the proposal given by the Promoter Directors to get the hypothecated Stocks and other material outside the unit and sell it and they assured that the purchaser could offer enough money to discharge the entire loan obligation. Since the Bank did not accept for the proposal of sale by Mutual Consent Bank did not heed to the words of the company in safe-guarding the primary securities during the entire period from the date of Seizure of the unit by APSFC until this day and allowed it to theft/damage.we where in huge losses and now they have given a auction Notice to third party collateral securities immovable properties belonging to close relatives please suggest/guide, -- Thanks, raj
It appears that in the present case that the bank had taken possession of the movable goods and that they were stolen from their custody. This appears to be a fit case of application of section 139 and 141 of the Indian Contract Act, which allows a surety to be discharged in case the creditor loses the security. You may file a suit against such action of the bank.
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