MoU entered for sale of suit property after issuance of notice u/s 13(2) wasn’t enforceable u/s 13 of SARFAESI: HC

FEMA amp; BANKING : Where plaintiff borrowers had created a security interest in suit property in favour of bank for a loan and later a MoU between plaintiffs and defendants (successful bidders in auction sale conducted by bank) was executed after issuance of notice under section 13(2), MOU was not enforceable as section 13 contains a statutory prohibition, to say, that no borrower shall after receipt of notice under sub-section (2) shall transfer by way of sale,FEMA amp; BANKING : Where plaintiff borrowers had created a security interest in suit property in favour of bank for a loan and later a MoU between plaintiffs and defendants (successful bidders in auction sale conducted by bank) was executed after issuance of notice under section 13(2), MOU was not enforceable as section 13 contains a statutory prohibition, to say, that no borrower shall after receipt of notice under sub-section (2) shall transfer by way of sale,www.taxmann.com Latest Case LawsRead More

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