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बबक ऑफ महहारहाषटष Bank of Maharashtra


ककदद्रीय कहायहार्यालय
Central Office,
ललोकममंगल, 1501,शशिवहाजजीनगर, पपणण 411005 Lokmangal,1501,Shivajinagar, Pune411005

¹¨¸¹š¸ ¬¸½¨¸¸‡Â ¹¨¸ž¸¸Š¸


LEGAL SERVICES DEPARTMENT
Tel.No. 25536256 Fax No. 25513123
E-mail: bomcolaw@mahabank.co.in Web:
www.bankofmaharashtra.in

IMPORTANT CIRCULAR FILE NO.3

NO.AX1/LEGAL/CIR-14/2009/ 14 JANUARY 2010

ALL BRANCHES AND OFFICES OF THE BANK

Dear Sir/Madam,

Reg : Booklet on Recovery Proceedings under


SARFAESI Act./ DRT/Civil Court

The Recovery and Legal Services Department has issued various circulars from time
to time containing detailed instructions and guidelines on follow up of Civil Suits , DRT cases
and SARFAESI action.

To recapitulate the said instructions and provide step by step guidance and specimen
formats for ready reference we have prepared a booklet which is being circulated herewith.

We hope that the booklet would help the branches and controlling offices to monitor
and follow up more effectively cases in DRT/Civil Courts and also recovery proceedings
under the SARFAESI Act..

Yours faithfully,

DEPUTY GENERAL MANAGER


RECOVERY AND LEGAL SERVICES

ENCL : ANNEXURES
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SARFAESI FORMS

I N D E X

Particulars Page
Nos
1 Chapter I : SARFAESI 4
(A) Step by step guide for actions under SARFAESI---
1 Criteria for initiating action 4
2 Persons authorised to take action under the Act 4
3 Decision to take Action & Authority 4
4 Issue of Notice under Section 13(2) 5
5 Procedure after issue of Notice 5
6 Seizure of movable property 5
7 Sale of Movable Property 6
8 Taking possession of immovable property 7
9 Sale of immovable property 7
10 Recovery from debt or receivables 9
11 Appointment of Manager 9
12 Appointment of Enforcement Agencies 9
13 Appeal in DRT/DRAT 10
(B) Formats for SARFAESI ACTION:-

S-1 Demand Notice under sec 13(2) 11


S-2 Demand Notice under sec 13(2) where mortgagor deceased 14
S-3 Proforma for informing Court / DRT 17
S-4 Letter of undertaking by the Borrower 18
S-5 Pre-Possession Notice 19
S-6 Notice Demanding Possession 21
S-7 Form of letter to be given to the Police authorities 22
S-8 Panchnama [Rule 4(1) ] 23
S-9 Inventory [ Rule -4(2) ] 25
S-10 Application to the District Magistrate / Chief Metropolitan Magistrate 26
seeking his assistance for taking possession of the secured assets.
Notice for sale to Borrower and Guarantor
S-11 Public Notice for Sale 29
S-12 Letter submitting Tender 31
S-13 Tender document & Terms and conditions of sale 33
S-14 Letter submitting quotation 35
S-15 Quotation - Terms & Conditions of Sale 40
S-16 Tender Opening Record Sheet 42
S-17 Letter to the highest bidder accepting the offer 47
S-18 Draft of letter of request by successful bidder for extension of time for 48
S-19 payment 50
Draft of letter by A.O. to the successful bidder for extension of time.
S-20 Certificate of Sale (for movable property) 51
Possession Notice (for immovable property) [Rule 8(1)]
S-21 Possession cum Public Notice for Sale 52
S-22 Sale Certificate for immovable property 53
S-23 Draft Notice under Sec 13(4)(d) (Garnishee) 54
S-24 56
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S-25 57

2 Chapter II : DRT & CIVIL SUITS 58

Step by Step guide for filing and follow up of DRT & Civil
Cases -
(A) STEPS TO BE TAKEN BEFORE FILING THE CASE
1 Appointment of Advocate 58
2 Approval of Draft Plaint/Original Application(OA) 59
3 Attachment /Injunction 59
(B) Further steps in DRT cases
a) - Service of Notices 59
b) - Filing of WS by Respondents 59
c) - Framing of Issues 60
d) - Arguments by Advocates 60
e) - Issue of Recovery Certificate 60
f) - Appeal to DRAT by Respondents 60
g) - Appeal to DRAT by the Bank 60
h) - Recovery Proceedings 60
i) - Modes of Recovery 61
(C) Further steps in Suit Filed in Civil Court & Decreed Accounts 61
a) - Service of Summons 61
b) - Filing of WS by defendants 61
c) - Framing of Issues 62
d) - Oral Evidence 62
e) - Arguments by Advocates 62
f) - Passing of judgment and decree 62
g) - Final Decree 62
h) - Appeal 62
i) - Execution of decrees 62
j) - Modes of Recovery 63
(D) Monitoring and follow up of DRT and Civil Suits 63
ANNEXURES
Annex 1 : Circular for Certificate to be given under the Banker’s 65
Books Evidence Act
(a) Certificate to be given by for non-CBS (Bibas) 67
Branches 69
(b) Certificate to be given under the Banker’s Book
Evicence Act for CBS Branches.
Annex 2(A): Letter of Entrustment to be given to the 71
Advocate at the time of entrusting suit /
Execution petition / appeal in Civil Court
Annex 2(B): Letter of Entrustment to be given to the Advocate 75
At the time of entrusting DRT Application /Appeal
Annex 3 : Checklist for verifying the contents of the Plaint / 78
DRT
Annex 4 : Professional fees in DRT 79
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Chapter I

SARFAESI

The Securitisation & Reconstruction Of Financial Assets & Enforcement of Security


Interest Act 2002. (SARFAESI Act) is an NPA Management legislation whereunder the
Banks and Financial Institutions are empowered to enforce the security interest in case the
account is classified as an NPA, without intervention of the Court by following the procedure
given in the Act. The Recovery Management Policy of the Bank has exhaustively dealt with
the subject .

(A) Step by Step guide for actions under SARFAESI Act 2002

1. Criteria for initiating action

i) Account is classified as NPA


ii) Account is secured by charge on the Assets as mortgage, hypothecation
charge and assignment but not lien, pledge, hire purchase.
iii) Action is initiated within limitation period
iv) Action only where NPA dues are more than Rs. 1.00 lac
v) Security interest created is not in agricultural land.
vi) Amount due is not less than 20% of the principal and interest thereon
vii) In case of consortium or multiple finance, consent of 75% of the secured
creditors by value of outstanding, on record date, is obtained.

2. Persons authorised to take action under the Act :

i) All actions under the Act are to be taken by the Authorised Officers under
his signature. All officers, in Scale IV and above are authorised by Bank
to act as Authorised Officers and take action under SARFAESI.
ii) Regional Head can entrust the accounts of branches headed by officers
below the rank of Scale IV to any of the Authorised Officers under his
control for the sake of convenience. The concerned branch must certify the
details assets and amount due etc. and assist the Authorised Officer for all
actions.
iii) The Authorised Officer is by designation and hence entire proceedings
need not be by the same Official.
iv) The Authorised Officer shall be present at the time of taking possession and
sale of the assets.

3. Decision to take Action & Authority:

i) The Security enforcement Cell (SEC) headed by Regional Head


shall identify eligible accounts for action under SARFAESI.
ii) The SEC should also decide whether to file case in the court simultaneously. In
following eventualities SEC may consider to file the case in court simultaneously for
expeditious recovery proceedings.
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o The value of the assets to be sold under SARFAESI are likely to be insufficient
to recover entire dues.
o Our Mortgage charge is defective.
o Title to the assets charged is doubtful or there are multiple charges created on
the same assets or identified as fraud case.
o The SARFAESI action is challenged by filing appeal to DRT/DRAT and the
case is getting prolonged.
o The balance portion after sale is likely to reduce the claim below Rs. 10.00 lacs
requiring Bank to file the case in Civil Court. Filing suit before sale of assets
under SARFAESI can give us jurisdiction in DRT.
o Where limitation period available for filing case in court is less than six months.
o No surplus will be available from the sale proceeds considering the statutory
dues having priority such as provident fund, sales tax etc.

4. Issue of Notice under Section 13(2)

a. Demand notice of 60 days to be served both on the borrower and guarantors


under the signature of Authorised Officer. (Form No. S1)
- In case of deceased borrower or guarantor notice should - be
issued to all legal representatives who have inherited - the property
charged. (Form No. S2)
b. Notice must give error free details of amount payable and details of secured
assets intended to be enforced in case of default
c. Notice shall be served at least by two reliable modes one by RPAD, and another
by courier, hand delivery and acknowledgement is kept on record.
d. In case of avoidance to receive notice; service should be made by affixing it on
conspicuous part of his residence or place of business and/or mortgaged
property or where movable assets are located. If not possible then by publication
in two newspapers at least one in vernacular.
e. In case SARFAESI action is taken simultaneously during pendency of court case
file purchis in court intimating the action and recovery effected (Form No.S3)

5. Procedure after issue of Notice

a. Reply must be given within 7 days for any queries or clarifications or objections
taken by the borrower/guarantor. Seven days period is mandatory and failure to
reply within that can vitiate action under SARFAESI
b. In case of part payment or request for time to make payment obtain post dated
cheques with undertaking. (Form No. S2) In case of default to pay within 60 days
proceed to take possession and sale of assets as per S.13(4)

6. Possession of movable property

a. In case possession is being taken after a lapse of period more than three months
from the expiry of sixty days notice period another notice may be issued before
taking possession. (Form No. 5)
b. Secured Assets should be identified as per records
c. Letter of intimation giving date and time of taking possession may be given to the
Borrower and guarantors. (Form No. S6). In case it is felt that such letter may
attract obstruction in taking possession such letter can be despensed with.
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d. Give intimation to the local police (Form No. S7)


e. Take possession of movable property in the presence of Authorised Officer and
two witnesses and make panchanama duly signed by all present (Form No. S8)
f. Make inventory of the assets. (Form No. S9). After taking possession deliver
copy of panchanama and inventory to the borrower/guarantor on the spot if
present otherwise by post.
g. If necessary request should be made in writing to Chief Metropolitan
Magistrate/District Magistrate to assist in taking physical possession (Form No.
S10)
h. Authorised officer or his representative should keep custody of the possessed
property under lock and key.
i. Take as much care as a man of ordinary prudence will take of his own property
j. Take steps for preservation and protection of the property
k. If necessary keep watch & ward and take insurance if not already insured.

7. Sale of Movable Property

a. Arrange for valuation of property immediately after possession from Govt.


.Approved Valuer on the panel of Bank
b. Fix the Reserve price on the basis of valuation. Reserve price should be fixed in
between the market value and distress value given by the valuer. depending
upon the nature of security and likely amount for which bids are expected .
c. The property be put to sale by issuance and service of notice of 30 days for Sale
(Form S.11) . If the sale of assets is to be effected by either inviting tenders from
the public or by holding public auction, the notice should also be published in two
leading newspapers, one in vernacular language having sufficient circulation.
(Form S12)
d. Sale the property in one or more lots by any of the following modes
i. By inviting tenders from public or (Form Nos.S13 & S14)
ii. By obtaining quotations from parties dealing in such type of assets or
interested in buying or (Form Nos..S15 & S16))
iii. By holding public auction or
iv. By private treaty.
As far as possible property should not be sold by private treaty at the
first instance. Only in a very exceptional cases justifying such sale or
where no bids are received in public auction or by calling quotation, sale
by private treaty should be made. Try to obtain consent of borrower and
guarantor to avoid any allegations. Record the reasons for sale by private
treaty.
e. Notice should contain detail description of movable property, reserve price, date
time and place of sale /auction, earnest money and mode and manner of
payment.
f. Finalise Terms and conditions of sale (Form No. S14) Any
charges/encumbrances on the assets which are known to Bank or any other
relevant information should be disclosed in the terms and conditions.
g. Sale should be made only after expiry of 30 days notice period.
h. Cancel the sale if borrower/guarantor pays in full before the date of auction
i. Conduct the auction as scheduled and property may be sold to highest bidder
only if the offer is above reserve price. Sealed tenders/offers/quotations should
be opened in the presence of offerers who choose to be present. Record should
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be made of opening of tender (Form No. S17. The endeavor should be to obtain
price above reserve price in all types of sale. For this, interse bidding may be
allowed to the bidders present at the time of opening of the bids.
j. In case property cannot be sold at reserve price a reconsideration may be made
in consultation with the securitization committee and property may be resold by
following same modalities
k. Issue letter to the highest bidder accepting the offer (Firn S18)
l. Purchaser shall pay bid price immediately.
m. In case the purchaser wants time for payment and if the Bank is inclined to
consider the request, the purchaser should make an application in writing (Form
S19) and the Bank should communicate permission in writing (Form S20)
n. On receipt of payment as per terms of sale issue sale certificate as per format
and deliver possession against receipt. (Form No. S21)
o. In case of default to pay the price assets shall be liable to put to sale again and
forfeit the earnest money. The amount of earnest money forfeited should be
credited to the P&L of the Bank and not to the borrowers account.

8. Taking possession of immovable property

a. Inspect the property for identification and whether it is occupied by the mortgagor
or by any third party
b. Decide whether to take actual or symbolic possession and whether it is
necessary to request in writing to CMM/DM to take possession [Form No.S10]
c. Issue intimation letter to the borrower and guarantor informing the date and time
on which you propose to take possession though it is not mandatory (Form
No.S6)
d. Give intimation to the local police (Form No. S7)
e. Arrange for valuer and photographer and two witnesses. Arrange also for video
shooting if necessary.
f. Affix the notice of possession in the prescribed format on the conspicuous part
of the immovable property (Form No.S22) in the presence of two witnesses and
take photograph. In case there are any movables inside the immovable property
take inventory signed by the authorised officer and witnesses and the borrower /
guarantor if present, while taking actual possession (Form No.S9)
g. Valuer should be given inspection of the property for valuation.
h. If symbolic possession is taken immediately apply to CMM/DM for taking actual
possession.
i. Put the lock and seal on the property in case of actual possession and take
photographs.
j. Publish the possession notice within seven days in two leading newspapers at
least one in vernacular language. If immediate sale is possible issue possession
cum sale notice within seven days to save on expenses. (FormNo.S23)
k. Take steps for preservation and protection by keeping watch and ward if
necessary
l. Take as much care as man of ordinary prudence will take of his own property
m. If immovable property taken possession alongwith movable property take
insurance if necessary

9. Sale of immovable property


a. Obtain valuation report from the Govt approved valuer on panel of Bank.
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b. Fix the Reserve price on the basis of valuation. Reserve price should be fixed in
between the market value and distress value given by the valuer. depending
upon the nature of security and likely amount for which bids are expected .
c. Serve Borrower and guarantor with 30 days notice for sale (Form No. S11)
d. In case of sale by public auction also publish notice in two leading newspapers
out of which one in vernacular language (Form No.S12)

e. Sale the property in one or more lots by any of following modes on as is


whereis basis.

i. By inviting tenders from public (Form No. S13 &S14) or


ii. By obtaining quotations from parties dealing in such type of assets or
interested in buying or (Form No.S15 & S16)
By holding public auction or
iii. By private treaty.
As far as possible property should not be sold by private treaty at the first
instance. Only in a very exceptional cases justifying such sale or where no
bids are received in public auction or by calling quotation, sale by private
treaty should be made. Try to obtain consent of borrower and guarantor to
avoid any allegations. Record the reasons for sale by private treaty.
f. Notice should contain details of borrower, secured debt amount, description of
immovable property, reserve price, date time and place of auction, earnest
money and mode and manner of payment, encumbrances known to the bank if
any and other terms & conditions which can be collected separately from the
AO.
g. Other detailed terms & conditions as to the manner in which the auctions will be
conducted and related matters may be prepared and handed over to the
prospective bidders while collecting tender forms. (Form No. S14)
h. The notice of sale should be affixed on the conspicuous part of the property
i. Besides publishing the notice in the newspaper wide publicity should be given to
the sale notice by affixing it in enlarged form on the premises of the branch and
other nearby branches, inserting handbills in the newspaper in nearby locality,
informing adjacent owners, displaying on the notice of board of housing societies
and mouth publicity with the clients of the branch acquaintances etc. Also
arrange to publish on the Website of the Bank.
j. Sale of property should be made only after expiry of 30 days on the date and
time and place as published in the news paper
k. Cancel the sale if borrower/guarantor pays in full or the amount settled as per
compromise before the date of auction.
l. Conduct the auction as scheduled and property may be sold to highest bidder
only if the offer is above reserve price
m. Sealed tenders/offers/quotations should be opened in the presence of offerers
who choose to be present. Record should be made of opening of tender( Form
No. S17)
n. The endeavor should be to obtain price above reserve price in all types of sale.
For this interse bidding may be allowed to the bidders present at the time of
opening the bids. The minimum amount by which offerers may increase the bid
at each round should be decided depending upon the expected price and
informed to the bidders before interse bidding.
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o. In case property cannot be sold at reserve price a reconsideration may be made


on the basis of revaluation and in consultation with the securitization committee
and property may be sold by following same modalities.
p. Issue letter to the highest bidder accepting his offer and making payment as per
terms (Form No.S18)
q. In case of default to pay 25 % amount earnest money should be forfeited and
credited to banks P&L. The property may be immediately resold to second
highest bidder (provided it is above Reserve price). In case the second highest
bidder is not willing to purchase then the property may be put to resale again.
r. In case of default in payment of balance amount as per terms and conditions,
unless extension is allowed by the securitization committee in writing, forfeit the
amount paid and property may be resold to the second highest bidder (provided
it is above Reserve price). In case second bidder is not ready to purchase then
put the property for resale by following the same procedure. In case the
purchaser desires extension, he should submit request in writing [Form S19] and
if the Bank desires to grant extension, it should give letter inwriting [Form
No.S20]
s. On payment of full amount issue certificate of sale in prescribed format. (Form
no. S24)
t. In case of simultaneous action intimation be given to the court (Form S3)
u. Take further steps to file suit or application in DRT for the balance due if any

10. Recovery from debt or receivables (S.13 (4) (d) )


a. Issue notice to the person who has acquired any secured asset from the
borrower and from whom any money is due or may become due to the borrower,
(e.g. rent) calling upon him to pay to the bank as the secured creditor instead of
to the Borrower towards his dues - (Form no. S25)
b. Any payment made by such person to the Bank will get valid discharge for his
liability to pay to the borrower
c. In case such person makes default in payment proceed to take action against
him by filing complaint with the Judicial Magistrate as per section 29 of the Act

11. Appointment of Manager


a. As per S.13 (4) (c) AO can appoint any person as manager to manage the
secured asset/business of the borrower.
b. The sanction of the competent authority should be obtained for the above action.
c. Manager shall exercise powers as provided in rule 10 of the Act. He is deemed
to be the agent of the borrower and has the power to recover any amount from
any person who has acquired any of the secured assets from the borrower.

12. Appointment of Enforcement Agencies

i) Authorised Officers can take help of Enforcement Agencies taken on panel


as per guidelines given in this respect
ii) Bank is liable for all actions of the Agents and there is a huge reputation
risk involved which should be taken care of
iii) Supervise the work of such Agencies closely for following only lawful
practices

Form of Agreement with Recovery Agent is already circulated.


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13. APPEAL IN DRT/DRAT

i) Any person including Borrower /Guarantor aggrieved by the action taken by


Authorized Officer can file application under SARFAESI before DRT whining
45 days. Such appeal can be filed only after action taken under S.13(4) of
the Act . No appeal can be filed on the notice under S.13(2)
ii) If we apprehend that borrower may approach DRT
issue caveat through panel Advocate to avoid exparte injunction.
iii) Entrust the case to panel Advocate for defending and
ensure that no injunction is granted and application is
dismissed at the earliest
iv) Advocate should be briefed properly and concerned official should remain
present at the time of hearing
v) Appeal cannot be filed in Civil Court, Consumer Forum except before DRT
vi) Consider filing appeal against the order of DRT granting injunction or the
application
vii) In case DRT is not hearing the case within the period of 60 days Bank can
file appeal with DRAT.
viii) In case borrower/guarantor files appeal in DRAT insist for deposit of 50%
amount of overdue.

[Note : Except form Nos. S4, S6, S10, S12 and S16, which are prescribed by the
SARFAESI Rules, the other forms are to be used as specimen forms only. The same may be
modified depending on requirements of particular case and circumstances.
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Form S-1

Demand Notice under sec 13(2)

BANK OF MAHARASHTRA
[ on letterhead of the Bank]

By Regd. A.D. / Under Certificate of Posting

To

1.

2.

(Give the name and addresses of the Borrower and also the names and addresses of
guarantors in chronology)

Dear Sir / Madam,

Sub: Notice U/s. 13 (2) of Securitisation & Reconstruction of


Financial Assets and Enforcement of Security Act 2002.
--------------------------------------------------------------------------

1. That at your request, the following credit facilities have been sanctioned by Bank of
Maharashtra to No. 1 of you. You Nos. ____ to ____ stood as Guarantors for
repayment of the dues under or in respect of the credit facilities granted to you No.
1.

2. That the details of the credit facilities, the securities charged in favour of the Bank
and the present outstanding dues are as under -
(Rs. In lakhs) .
Sr. No. Nature & Amt of credit facility Security Present
outstanding (as on
_________)
1.
2.
3.
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(Give details of all the securities in the above column or may attach a separate annexure)

3. That in consideration of the said credit facilities availed, you have executed the
necessary documents in favour of the bank including the following documents and also
created charges and securities in favour of the Bank as above mentioned.

a)
b)
c)
(Give details of all documents (including renewals) executed by borrower and gurantors with
dates)

The details of the creation of charges are as under

1) Name of the executants

2) The nature of charge : Mortgage / hypothecation

3) Description of the property mortgaged / hypothecated.

4. That you have failed to adhere to the terms and conditions of sanction and made
defaults and accordingly your account has been classified by the Bank as NPA in accordance
with the prescribed norms issued by Reserve Bank of India. Inspite of our repeated
demands, you have not paid the outstanding amount in your account.

5. In view of the defaults committed by you in repayment of the amounts due and
payable by you in respect of the credit facilities mentioned above, the Bank has filed an
Application in Debts Recovery Tribunal being O.A. No. / a Civil suit in the
court of at being suit No. against you all for recovery of
Rs. (Rupees ) Plus interest pendente . The said
proceedings are still pending. The liability of you all to repay the dues of the Bank is joint
and several. (In case action is taken after filing suit in court).

6. You have still not repaid the dues of the Bank and hence in exercise of powers
conferred on the Bank under the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act 2002 (SRAFAESI) and without prejudice to the rights of
the Bank and to the pending proceedings mentioned above, the Bank hereby calls upon you
to repay in full the amount of Rs. ______________ plus interest thereon @ w.e.f.
____________ within 60 days from the date of receipt of this notice; failing which, in addition
to and without prejudice to the other rights available to the bank, the bank shall be entitled to
exercise any / or all of the powers under Sub-Sec.(4) of Sec. 13 of the aforesaid Act in
respect of these securities / properties enforceable under the Act, in which case you shall
also be liable to further pay all costs, charges and expenses or other incidental charges,
which please note.

The powers available under the Act inter alia include -

a) To take possession of the secured assets wherein the security interest has been
created as above mentioned together with the right to transfer by way of lease,
assignment or sale, for realizing the secured asset.
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b) To take over the management of the secured assets including right to transfer by
way of lease assignment or sale

c) To appoint any person as Manager to manager the secured assets, the


possession of which will be taken over by us and the Manager shall manager the
secured assets and any transfer of secured assets shall vest in the transferee all
rights in or in relation to, the secured assets, as if the transfer had been made by
you.

d) To write to or issue notice in wiring to any person, who has acquired any of the
secured assets against which security interest has been created from whom any
money is due or may become due to you to pay us the money.

7. Please take a note that as per Section 13 (13) of the Act, after receipt of this notice,
you are restrained from disposing off or dealing with the securities without our prior written
consent.

8. Although the security/ies described at Sr. No. above, being Agricultural lands, are
not enforceable under the SRAFAESI Act, the Bank has not given up this security and
reserves its right to enforce the said security/ies before appropriate forum or otherwise as
deemed fit. (In case of agriculture land forms one of the securities).

FOR BANK OF MAHARASHTRA

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
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Form S-2

[Draft of the demand notice to the legal heirs inheriting the asset wherein security interest is
created in favour of the Bank. ]

Demand Notice under sec 13(2)

BANK OF MAHARASHTRA

By Regd. A.D. / Under Certificate of Posting

To

1.
2.

(Give the name and addresses of the Borrower/s and Guarantor/s and in case of deceased
Borrower/guarantor give names of legal heirs/representatives of the Borrower/Guarantor
who has created charge on his asset and also the names and addresses of guarantors in
chronology)

Dear Sir / Madam,

Sub: Notice U/s. 13 (2) of Securitisation & Reconstruction of


Financial Assets and Enforcement of Security Act 2002.
--------------------------------------------------------------------------

3. That at the request of Mr./Mrs./M/s _______________________ the following


credit facilities have been sanctioned by Bank of Maharashtra to
____________________. You Nos. ____ to ____/
Mr./Mrs.___________________ stood as Guarantors for repayment of the dues
under or in respect of the credit facilities granted to
________________________________ (hereinafter referred to as the
Borrower/s).

4. That the details of the credit facilities, the securities charged in favour of the Bank
and the present outstanding dues are as under -
(Rs. In lakhs) .
Sr. Nature & Amt Security Name of the Present
No. of credit facility person creating outstanding (as
security on _________)
1.
2.
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3.

(Give details of all the securities in the above column or may attach a separate annexure)

3. That in consideration of the said credit facilities availed, the Borrower and the
Guarantors have executed the necessary documents in favour of the bank including the
following documents and also created charges and securities in favour of the Bank as above
mentioned.

a)
b)
c)
(Give details of all documents (including renewals) executed by borrower and guarantors
with dates)

The details of the creation of charges are as under

1) Name of the executants

2) The nature of charge : Mortgage / hypothecation

3) Description of the property mortgaged / hypothecated.

4. That the Borrowers have failed to adhere to the terms and conditions of sanction and
made defaults and accordingly your account has been classified by the Bank as NPA in
accordance with the prescribed norms issued by Reserve Bank of India. Inspite of our
repeated demands, you have not paid the outstanding amount in your account.

5. That the said Borrower/Guarantor expired and you Nos._____ to _____ are the legal
heirs of the said Borrower/Guarantor and as such are liable to discharge the obligation to pay
the amount due and payable to the Bank in respect of the credit facilities mentioned above.
You Nos._____ to _______ have inherited the property described above, which is charged
to the Bank as security and as such are liable to pay the amount secured by the said charge.

*6.. In view of the defaults committed by you in repayment of the amounts due and
payable by you in respect of the credit facilities mentioned above, the Bank has filed an
Application in Debts Recovery Tribunal being O.A. No. / a Civil suit in the
court of at being suit No. against you all for recovery of
Rs. (Rupees ) Plus interest pendente lite . The said
proceedings are still pending. The liability of you all to repay the dues of the Bank is joint
and several. (*In case action is taken after filing suit in court).

6. You have still not repaid the dues of the Bank and hence in exercise of powers
conferred on the Bank under the Securitization and Reconstruction of Financial Assets and
Enforcement of Security Interest Act 2002 (SRAFAESI) and without prejudice to the rights of
the Bank and to the pending proceedings mentioned above, the Bank hereby calls upon you
to repay in full the amount of Rs. ________ plus interest thereon @ w.e.f.
____________ within 60 days from the date of receipt of this notice; failing which, in addition
to and without prejudice to the other rights available to the bank, the bank shall be entitled to
exercise any / or all of the powers under Sub-Sec.(4) of Sec. 13 of the aforesaid Act in
16

respect of these securities / properties enforceable under the Act, in which case you shall
also be liable to further pay all costs, charges and expenses or other incidental charges,
which please note.

The powers available under the Act inter alia include -

e) To take possession of the secured assets wherein the security interest has been
created as above mentioned together with the right to transfer by way of lease,
assignment or sale, for realizing the secured asset.

f) To take over the management of the secured assets including right to transfer by
way of lease assignment or sale

g) To appoint any person as Manager to manager the secured assets, the


possession of which will be taken over by us and the Manager shall manager the
secured assets and any transfer of secured assets shall vest in the transferee all
rights in or in relation to, the secured assets, as if the transfer had been made by
you.

h) To write to or issue notice in wiring to any person, who has acquired any of the
secured assets against which security interest has been created from whom any
money is due or may become due to you to pay us the money.

7. Please take a note that as per Section 13 (13) of the Act, after receipt of this notice,
you are restrained from disposing off or dealing with the securities without our prior written
consent.

8. Although the security/ies described at Sr. No. above, being Agricultural lands, are
not enforceable under the SRAFAESI Act, the Bank has not given up this security and
reserves its right to enforce the said security/ies before appropriate forum or otherwise as
deemed fit. (In case of agriculture land forms one of the securities).

FOR BANK OF MAHARASHTRA

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
17

Form S-3

PROFORMA FOR INFORMING COURT/DRT

BEFORE THE PRESIDING OFFICER, DEBT RECOVERY TRIBUNAL NO.

OR
HON’BLE _____________ _______________High court (Name of Court)

Or

IN THE COURT OF THE CIVIL JUDGE, SENIOR DIVISION ____________

Original Application/Original Civil Suit No._________

BANK OF MAHARASHTRA …… Applicant / Plaintiff

Versus

Defendant/Judgement Debtors/Opposite Party ….

The humble submission of the applicant BANK OF MAHARASHTRA

Most Respectfully showeth:

a) The aforesaid original application/Suit/proceeding is pending before your Lordship.

b) That in pursuance of the enforcement of Securitization and Reconstruction of financial


Assets and Enforcement of Security interest Act, 2002, the applicant/Petitioner bank
has issued the notice under section 13(2) of the said Act to the defendant(s)/opposite
party and proposes to take action under S.13(4) of the said Act.

c) That the applicant/Petitioner bank shall keep informed further developments of the
said proceedings to your lordship from time to time.

Hence it is prayed that a note of the Bank’s action may be taken and this application be kept
on record for the purpose of meeting the ends of justice.

For and on behalf of


BANK OF MAHARASHTRA
Place:
Date: Applicant
18

FORM S-4
Letter of undertaking by the Borrower

Date: - / /200

To,
The Authorised officer
Chief Manager
Bank of Maharashtra
________________

Dear Sir,

Regarding:- Possession of the secured assets under Securitisation Act

1) I/ we have received the notice dated / /200 served by the bank under Section 13(2)
of the SECURITISATION & RECONSTRUCTION OF FINANCIAL ASSETS AND
ENFORCEMENT OF SECURITY INTEREST ACT, 2002.
2) I/ We _________________ the borrower and _____________________ guarantor
failed to pay the dues of the said notice, I/we hereby request you to defer the action of
taking possession/sale of the property mentioned in the notice dated / /200 under
said Act, with the condition that if I/we _____________the borrower and
_______________guarantor fail to pay the entire dues upto / /200 the bank will be
at liberty to take necessary action to recover the said dues from the sale of the said
property.

3) I/ WE ______________the borrower and __________________ guarantor undertake


to give, vacant and peaceful physical possession of the said property to you, the
authorised officer in case of non-payment of the aforesaid amount and in that case,
you may sell the said property at your discretion and to appropriate the sale proceeds
thereof towards the said loan account without having my/ our any kind of right to resist
or object in any manner whatsoever.

Thanking you

Yours faithfully
19

Form S-5
(Notice before taking possession where possession is being taken after a lapse of more than
3 months from expiry of 60 days notice)

(On the letterhead of the Bank)

Date:- __________
PRE-POSSESSION NOTICE

To,

Sub:- Notice under section 13 (4) (a) of the Securitisation and


Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002 (herewith called
“the Act”)-Enforcement of Security Interest-Demand of
possession of secured assets — A/C. _______________

Sirs,
In response to our demand notice dated ___________ and further notices dated
_______________ and _____________ respectively, we received representation made by
you No. 1/2/3 from time to time on __________ and / /200 and after careful consideration
of the same, we have come to the conclusion that you all have failed to fulfill the promises
made for repayment of outstanding dues of the bank in totality and also refuse to handover
physical possession of the secured assets mortgaged by you No. ___ to the bank to secure
the debts of you No. 1.

You all having failed to discharged the liabilities as stated in the said demand notice,
the bank is legally entitled to take the secured assets mortgaged by you No. __ in its
possession in respect of which the security interest has been created in its favour as detailed
in said notices.
20

The undersigned, being duly appointed Authorised Officer of the bank (secured
creditors) to take all actions and exercise all powers to enforce the security interest on behalf
the secured creditors under the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002, hereby call upon you No. __ to hand over
peaceful possession of the secured immovable assets as detailed in the Schedule appended
here below including the right to transfer by way of lease, assignment or sale for realizing the
secured assets for the due satisfaction of the Cash credit and Term Loan facilities availed of
by you No. ___ at Village - __________, Taluka – _________, District _________ at around
_________ a.m and on / /200 failing which the undersigned will be forced to take
appropriate steps required under the law for taking possession of the aforesaid secured
assets.

Please be informed that the possession will be taken at your risk and cost. Please be
also further informed that after taking possession, necessary watch and ward arrangements
will be made at your risk and cost. Insurance of the secured asset, if need be, will be done at
your cost. Further action for sale of the secured assets will follow.

SCHEDULE “A”

ALL THAT premises being totally admeasuring


__________sq. feet Built – up area , standing on plot of land bearing City Survey No.,_____,
Hissa No. ____, plot No. ____________, lying, being and situate at
____________________________-, within local limits of ____________________________
and in the Registration Sub – District _____________and Registration District –
__________.

Date :-
Place : - Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
21

Form S-6
BANK OF MAHARASHTRA
On letterhead of the Bank
__________________________________________________________________________
Date:
NOTICE DEMANDING POSSESSION

1.

Dear Sir,

Re: Possession of secured assets

Please refer to our notice dated ___________ calling upon you to pay in full and discharge
your liabilities to the Bank aggregating Rs. ______________/- plus unapplied interest @
_____% W.e.f / /200 and interest thereon. Since you have failed to discharge your liabilities,
we as secured creditors are entitled to take possession of the secured assets, over which
security interest has been created in their favour as per the details, give below

Sr.No Details of security Details of security document


a)

b)

As Authorised officer of the secured creditors to take action and exercise powers of the
secured creditors under the provisions of the Securitisation & Reconstruction of Financial
Assets and Enforcement of Security interest Act, 2002, I the undersigned hereby call upon
you to hand over peaceful possession of the aforesaid secured assets and any other assets
which constitute security for the due repayment of the credit facilities availed by No.______
of you at the place and on the date and time mentioned below.

1) Place:- ________________________________
2) Date:- / /200
3) Time: - 11.00 A.M.

Yours faithfully

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
22

FORM S-7

Letter to be given to Police authorities

(On the letterhead of the Bank)

No. Date :

To,

The Sr. Inspector of Police,


Police Station,
_____________,
____________________

Dear Sir,

Sub: Taking Possession of Assets charged as security to our bank

With reference to above we are to inform you that in exercise of power conferred on us under
13 of Securitisation & Reconstruction of Financial Assets and Enforcement of Security
interest ACT 2002 we are to take possession of secured assets charged as security to our
bank on at A.M. The details of property are as under:

Address

This is for your kind information. We also seek you help in case of need and your
cooperation in this regard would be highly appreciated.

Yours faithfully

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
23

Form S-8

APPENIX-I

[rule-4(1)]

PANCHNAMA

WHERE AS;

We

Sr. Name of Panch and Address Age Occupation

No. Father’s/Husband’s name


24

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 i.e.on ________ 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 of 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.

Name & Address Signature Date Time

DRAWN BEFORE ME

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
25

Form S-9
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 Bank of Maharashtra under the
said Act between the____________ hours --------------

Sr. Description of article Estimated value Place where kept for safe
No. custody (Name of the person if
necessary)

Panchas:

SL. Name and Address of Panch Signatures


No.

Drawn by me today the------------20--------at-------------

Signature of Borrower/Representative

Signature of Authorised Officer


26

Form S-10

Application to the District Magistrate/Chief Metropolitan Magistrate seeking his help for taking
possession of the secured assets.

BEFORE THE HON’BLE CHIEF METROPOLITAN MAGISTRATE/

THE DISTRICT MAGISTRATE

__________________________________

BANK OF MAHARASHTRA
A New Bank constituted under the Banking
Companies (Acquisition & Transfer of
Undertakings Act, 1970 having its Head
Office at Lokmangal, 1501 Shivajinagar,
Pune 411 005 and a branch office/Regional
Office at ___________________________ … Applicant

Vs.

1. Shri ___________________________
Age ______ occupation ______________,
Residing at _________________________
___________________________________

2. Shri ___________________________
Age ______ occupation ______________,
Residing at _________________________
___________________________________ … Respondent/s

Application u/s 14 of the Securitisation & Reconstruction of


Financial Assets & Enforcement of Security Interest Act, 2002
on behalf of Bank of Maharashtra, Secured Creditor, for taking
possession of the secured asset.

The Applicant Bank most respectfully submits and prays as under :

1. The Applicant Bank had granted credit facilities aggregating to


Rs._________________ (Rupees ________________________) to
______________________________________ [hereinafter referred to as the
Borrower inter alia secured by Mortgage /Hypothecation of
______________________________________ belonging to the Respondent No.
______ above. The said secured asset is more particularly described in the
27

schedule hereunder written. A copy of the document creating the said charge is
enclosed to this application as Annexure A.

2. The Borrower has committed default in repayment of the amount due and the
account of the Borrower is classified by the Bank as “Non Performing Asset” as per
the directives of the Reserve Bank of India.

3. The Applicant Bank is a “secured creditor” within the definition given in S.2(zd) of
the Securitisation and Reconstruction of Financial Assets and Enforcement of
Security Interest Act, 2002 (hereinafter referred to as SARFAESI Act) and is
entitled under the Act to enforce the security interest created in its favour for
recovery of its dues.

4. An amount of Rs. ____________________________ (Rupees


____________________________ ) plus interest thereon from _______________
and costs, charges and expenses is due and payable by the Respondents to the
Bank jointly and severally.

5. The Authorised Officer of the Bank, under the powers vested by SARFAESI Act,
has on ________________ issued a Notice of Demand under S.13(2) of the Act
calling upon the Respondents to pay the amount due together with interest within
60 days. (copy of the said notice is enclosed as Annexure B). The Respondents
however did not comply with the said notice and the said amounts still due and
payable to the Applicant Bank.

6. The Authorised Officer therefore under the rights vested by the said Act,
proceeded to take action under S.13(4) of the Act. However, the Respondents
did not give peaceful physical possession of the secured asset more particularly
described in the schedule hereunder written.

7. As regards the immovable property described in the schedule hereunder written,


the Applicant has taken symbolic possession of the property described below by
affixing a copy of the Possession Notice on the conspicuous part of the said
property. The notice of possession is also published in two local newspapers.
Copy of Possession Notice published in newspaper is enclosed as Annexure C.

8. The said property is occupied by ________________________ / a stranger and


the Respondents have not given vacant possession of the said premises.

9. The Applicant Bank wants to take physical possession of the said premises so as
to enable it to sell the same under the provisions of the Act for recovery of its dues.
Under the provisions of S.14 of the SARFAESI Act, the Secured Creditor can seek
help of the Hon’ble District Magistrate/Chief Metropolitan Magistrate for taking
possession. Hence this application .

10. The applicant therefore prays that :


28

A. Necessary steps, as may be deemed appropriate and necessary for taking


physical possession of the assets mentioned in the schedule hereunder
written and handing over possession of the said assets to the Applicant may
be taken.
B. Necessary orders, directions, instructions may be issued to the appropriate
authorities for giving effect to the prayer (A) above.
C. Any other fit and appropriate orders may be issued as may be deemed fit
and proper for giving effect to the provisions of the SARFAESI Act and to
protect interest of the Applicant Bank.

FILED THIS ________ DAY OF __________ 20

PLACE :

For Bank of Maharashtra

AUTHORISED OFFICER
APPLICANT

VERIFICATION

I, ______________________________________________, Chief/Asstt.General Manager,


Bank of Maharashtra _______________ and Authorised Officer under the SARFAESI Act, do
hereby state on solemn affirmation state that the contents of the application are true and
correct to the best of my information, beliefs and as per the records available with the
Applicant and in token thereof I have signed and verified this Application .

Place :

Date :

________________________________
29

Form S-11
Notice for sale to Borrower and Guarantor

BANK OF MAHARASHTRA
(on letterhead of the Bank)
BY REGISTERED POST AD
UNDER CERTIFICATE OF POSTING
BY COURIER

No.AX /SEC/F- /2009 Date :

To

1. _________________________________

_________________________________

_________________________________

2. _________________________________

_________________________________

_________________________________

3. _________________________________

_________________________________

_________________________________

4. _________________________________

_________________________________

_________________________________

[names & addresses of the Borrower, Guarantor, Mortgagor]

Re : Notice for sale of __________________________


Of ______________________________________
Under the Securitisation & Reconstruction of
Financial Assets & Enforcement of Security
Interest Act, 2002 for recovery of Rs.____________
Plus interest, costs, charges from ______________
30

Please take a notice that :

In terms of the powers vested in the undersigned as the Authorised Officer of Bank of
Maharashtra under the Securitisation and Reconstruction of Financial Assets Act, 2002
[SARFAESI ACT] and the Rules, the Authorised Officer of the Bank has on
_____________________ taken possession of the assets mentioned below for taking action
under the SARFAESI and to sell the said assets for recovery of Rs._______________
[Rupees ____________________________________________________] as on this date
plus interest, costs, charges and expenses thereon from _____________________. :

Description of the property :

Name of the Borrower/Guarantor


Creating charge

Nature and details of the property : (a) Movable property


Viz. goods/machinery/plant/
Equipment/vehicles/ stock/
Articles/Furniture ________

Description of the Asset charged :

(b) Immovable property :


Land, Building, shed, structure,
House/flat/shop/godown,
Leasehold property ______
_______________________
Description of the Asset

_____________________________________________________________

It is observed that the amount due to the Bank is not yet paid by you. Please note that the
Authorised Officer of the Bank under the powers vested in him under the SARFAESI Act and
Rules, shall be selling the said properties or any part of it to by any mode prescribed by the
Act to any purchaser/s on the terms and conditions as may be determined by the Bank in its
sole discretion, after expiry of a period of 30 days from the date of receipt of this notice if the
entire amount due to the Bank together with uptodate interest, costs and charges are not
paid by you during this period..

Asstt.. Gen./Chief Manager &


AUTHORISED OFFICER OF
BANK OF MAHARASHTRA
31

Form S-12

BANK OF MAHARASHTRA

PUBLIC NOTICE FOR SALE

SALE OF ASSETS UNDER THE SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND
ENFORCEMENT OF SECURITY INTEREST ACT, 2002

In exercise of powers conferred under Securitization and Reconstruction of Financial Assets


and Enforcement of Security Interest Act, 2002 and Security Interest (Enforcement) Rules,
2002 and pursuant to the possession of the secured assets of the borrower(s)/ mortgagors
mentioned hereunder, the public and all concerned including the concerned
borrowers/mortgagors, their legal heirs/ representatives, as the case may be are hereby
informed that sealed offers are invited by the undersigned for purchase of the properties listed
below.

Sr. Name of Borrower Outstandin Description of the Property Earnest Reserve


No g Amount Money Price.
(in Rs) as Deposit (Rs.in
on Lakhs)
________

SALE IS SUBJECT STRICTLY TO THE TERMS AND CONDITIONS SPECIFIED IN THE PRESCRIBED
TENDER FORM and is on “ AS IS WHERE IS BASIS” and “ AS IS WHAT IS BASIS”

The prescribed tender forms are available at the above address or at


_______________________ branch of the Bank on payment of form fees of Rs._________
Interested parties may please contact the above office OR Bank of Maharashtra Branch
_____________, Tel No- _____________ & for further details of the properties and tender
forms containing terms and conditions of sale.

The Bank reserves the right to postpone the sale or cancel the same without assigning any
reasons therefore.

The Bank reserves its right to accept or reject any or all offers without assigning any reason
The Authorised Officer of the Bank would conduct the sale of the above properties at the
place, date and time mentioned below, as per the terms and conditions mentioned in the
tender form.
32

The auction/inter se bidding will take place at the same place and time when intending bidders
may remain present and revise their offers upwards.

Time and date for collection of tender forms : from __________ to _____________
between __________ to ____________

Time and date of Inspection of property : ________ to ________, by prior appointment


between _________ AM to __________PM.
Last date & time for submitting Tenders : till 2.00 PM ________
Time and date of of opening of tenders : _____ AM/PM on __________.
Place of sale : __________________________

The Guarantors of the concerned borrowers are also hereby advised to note the above for
their information and necessary action, as may be deemed fit.

Date: Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
33

Form S-13

FORMAT OF LETTER TO BE SUBMITTED BY TENDERER WITH TENDER

LETTER SUBMITTING TENDER


To,

The Authorised Officer,


Bank of Maharashtra
_____________Regional Office /Branch

Dear Sir,

With reference to your Notice inviting Tender, I / We do hereby offer to purchase the assets
detailed in the Notice at the rate as mentioned in the Tender Form enclosed in sealed cover.

I / We have seen the assets to be purchased and understand the general terms and
conditions.

I / We have deposited Earnest Money Deposit (EMD) of Rs.__________ (Rupees


__________________________________) by Demand Draft.

I / We do hereby agree that the EMD shall be forfeited by you in the event of my / our tender
is accepted and I / we fail to make payment of the initial deposit as per terms & conditions.

I / We understand that you are not bound to accept any tender that you may receive.

I / We further understand that if the borrower pays in full the amount due to Bank before the
date of acceptance of bid as per tenders by bank, the tenders will not be acted upon and
necessary communication will be sent.
I/We, the Tenderer/s aforesaid do hereby state that I/we have read the entire conditions of
the Tender and advertisement and understood them fully. I/We, hereby unconditionally agree
to confirm with and to be bound by the said conditions.
I/We further declare that I/we intend to purchase the above-referred assets from the Bank for
our own use/business and that the information revealed by me/us in the Tender document is
true and correct to the best of my/our belief. I/We agree that if any of the
statement/information revealed by me/us is found to be incorrect and/or untrue, the Tender
submitted by me/us is liable to be cancelled and in such case, the Earnest Money Deposit
paid by me/us is liable to be forfeited by the Bank and the Bank shall be at liberty to annul
34

the offer made to me/us at any point of time. I/We also agree that after my/our offer given in
my/our Tender for purchase of this property is accepted by the Bank and I/we fail to accept or
act upon the terms and conditions of the Offer letter or am/are not able to complete the
transaction within the time limit specified in the Offer letter for any reason whatsoever and/or
fail to fulfill any/all the terms and conditions of the Tender and Offer letter, the Earnest Money
Deposit and any other monies paid by me/us alongwith the Tender and thereafter, are liable
to be forfeited by the Bank and that the Bank has also a right to proceed against me/us for
specific performance of the contract if so desired by the Bank.
Yours faithfully,

Signature of the Tenderer


NAME OF THE TENDERER :
ADDRESS - OFFICE:
- RESIDENCE :
TEL. NO. - OFFICE :
- RESIDENCE
35

Form S-14

Sr. No. (_________)-


Cost: Rs. __________/-
Offer to be submitted in a sealed cover
on or before ___________ a.m./p.m..
On ____day of _____________20

Ref: Sale of Secured Asset


Secured debt due from Shri/Smt./M/s ___________________

TENDER DOCUMENT
PROPERTY FOR SALE ON
“AS IS WHERE IS” AND “AS IS WHAT IS BASIS”
(PROPERTY TAKEN OVER UNDER SECURITISATION & RECONSTRUCTION of
FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST ACT, 2002)

1. Name of the Tenderer :________________________________

2. Address of the Tenderer : ________________________________

________________________________

3. Details of Secured Asset :________________________________


(For details see Annexure A)
_______________________________

4. Name of Account for which : ________________________________


Secured Asset belongs
(For details see Annexure A)

5. Tender price offered :Rs.______________________________

(Rupees_________________________ ______only)

Copy of the Terms and Conditions duly signed are enclosed.


36

______________________
__
(Signature of the Tenderer)
37

Annexure to Tender Form

TERMS & CONDITIONS OF SALE

The sale shall be subject to the conditions prescribed in the Security Interest (Enforcement)
Rules 2002 and to the following further conditions:

i) If the dues of the Bank together with all costs, charges and expenses incurred by it
or part thereof as may be acceptable to the Bank are tendered by or on behalf of
the borrower or property holder/s or guarantor/s at any time on or before the date
fixed for sale , the sale of assets may be cancelled.

ii) The particulars specified in the Schedule herein below have been stated to the
best of the information of the undersigned, but the undersigned shall not be
answerable for any error, misstatement or omission in this proclamation.

iii) The property shall not be sold below the reserve price.

iv) Tenderers may give offers either for one or for all the properties. In case of offers
for more than one property tenderer will have to submit separate tender form for
each property giving separately the offer amounts for each property.

v) The Tender shall be accompanied by a Earnest Money Deposit (EMD) equal to


10% of the reserve price, by Demand Draft/Pay Order, payable at
______________issued by a Public Sector Bank/any Scheduled Bank in favour of
“Authorized Officer, Bank Of Maharashtra”.

vii) The EMD will be refunded to the unsuccessful bidders within 15 days from the
date of the opening of the Tenders. The Tenderers will not be entitled to claim any
interest.

viii) The offer should be in the prescribed Tender form i.e., this document. This Tender
document duly completed should be put in an envelope, which should be sealed
and superscribed with “Offer from _______________ for purchase of
______________________________________________________ (mention the
property/properties for which Tender is submitted)” and the said envelope be
deposited in the Tender Box kept at _____________________ between _______
AM and _______ PM on or before the last date of submission of Tender/s
mentioned in the concerned advertisement, except Saturday/Sunday/Bank
Holidays.

ix) The Bank may in its sole discretion allow inter se bidding with intention to fetch the
best price/value of the property. The minimum amount by which the offers are to be
increased shall be determined by the officer conducting the sale.

x) In case of any dispute arising as to the validity of the tender, amount of bid, EMD
or as to the eligibility of the bidder, authorization of the person representing the
bidder, the interpretation and decision of the Bank shall be final. In such an
38

eventuality, the Bank shall in its sole discretion be entitled to call off the sale and
put the property to sale once again on any date and as such time as may be
decided by the Bank.

xi) For reasons to be recorded, it shall be in the discretion of the officer conducting the
sale to adjourn it to any date or even to cancel the same.

xii) In the case of movable property, the person declared to be the purchaser shall
have to pay immediately after such declaration; the full amount of his purchase
money to the officer conducting the sale and, in default of such deposit, the
property shall forthwith be put up again for sale. The deposit, after defraying the
expenses of the sale, may be forfeited to the Bank and the defaulting purchaser
shall forfeit all claims to the property or to any part of the sum for which it may
subsequently be sold. The Bank however shall be within its own discretion entitled
to allow time for making payment or any part thereof.

xiii) In case of immovable property the successful bidder will have to pay 25% of the
offer amount less amount paid as EMD immediately by Demand Draft or Pay
Order payable at __________ issued by a Public Sector Bank/any Scheduled
Bank in favour of “Authorized Officer, Bank Of Maharashtra” and the balance
amount on or before the 15 day of confirmation of sale by the Bank. Bank may at
its discretion allow further time to pay the balance amount. In the event of any
default in payment of any of these amounts, or if the sale is not completed by
reason of any default on the part of the purchaser, the Bank shall be entitled to
forfeit all the monies till then paid by the purchaser and put up the property in
question for resale/disposal in its absolute discretion, and the defaulting purchaser
shall forfeit all claim to the property or to any part of the sum for which it may be
subsequently sold.

xiv) Tenders will be opened as per time, date and place mentioned in the Sale Notice
and in “Annexure A” in the presence of the tenderers and the
borrowers/guarantors/property owners or their authorized representatives who may
choose to remain present on the day and time as aforesaid.

xv) The property offered for sale is on ‘AS-IS-WHERE-IS-AND-AS IS WHAT -IS


BASIS’. The Bank, therefore, does not undertake any responsibility to procure any
permission/ license, NOC, etc. in respect of the property offered for sale or for any
dues like outstanding water/service charges, transfer fees, electricity dues, due of
the Municipal Corporation/ local authority/CHS or other dues, taxes, if any, in
respect of and/or in relation to the said property.

xvi) The Tenderers are advised, in their own interest, to verify the area of the premises
in question as also the above and any other dues like Sales Tax, Excise Duty, etc.
from the respective authorities to their satisfaction before submitting the Tenders.

xvii) Tenders with conditional offers may be treated as invalid. Likewise


correspondence about any change in the offers will not be entertained. If any
Tenderer wishes to give a fresh offer on or before the last date prescribed for
39

submission of the Tenders in the concerned advertisement, he may file a fresh


Tender with appropriate EMD and Tender fees.

xviii) The purchaser will be required to bear all the necessary expenses like Stamp Duty,
Registration expenses, etc. for transfer of the property in his/her name.

xix) The Bank reserves its right to accept or reject any or all the offers without
assigning any reason and in case all the offers are rejected, either to hold
negotiations with any of the bidders/tenderers or sell the property through private
negotiations with any of the bidders/tenderers or any other party/parties. The
Bank’s decision in this behalf shall be final.

xx) The sale certificate shall be issued in the same name in which the tender is
submitted.

xxi) Disputes, if any, shall be within the jurisdiction of ______________ Courts only.

xxii) Words and expressions used herein above shall have the same meanings
respectively assigned to them in SARFAESI Act, 2002, and the Rules framed there
under.

____________________
(Signature of the Tenderer)
40

Annexure “A”

SCHEDULE OF PROPERTY

Sr. Description of property to be sold with the names Reserve price Date and time
No of the owners and venue of
. sale.
1
2 Details of Movable/Immovable property

_______________
(Signature of the Tenderer)
41

Form S-15

LETTER SUBMITTING QUOTATIONS


To,

The Authorised Officer &


Asstt. General Manager
Bank of Maharashtra
Bajirao Road Branch,
Budhwar Peth,
Pune 411002.

Dear Sir,

With reference to your Notice inviting Quotations, I / We do hereby offer to purchase the
assets detailed in the Notice at the rate as mentioned in the Quotation Form enclosed in
sealed cover.

I / We have seen the assets to be purchased and understand the general terms and
conditions.

I / We have deposited Earnest Money Deposit (EMD) of Rs.__________ (Rupees


__________________________________) by Demand Draft bearin no. ---------- dated drawn
on-----------

I / We do hereby agree that the EMD shall be forfeited by you in the event of my / our
Quotation is accepted and I / we fail to make payment of the initial deposit as per terms &
conditions.

I / We understand that you are not bound to accept any Quotations that you may receive.

I / We further understand that if the borrower pays in full the amount due to Bank before the
date of acceptance of offers as per Quotations by bank, the Quotations will not be acted
upon and necessary communication will be sent.
I/We, the sufferer/s aforesaid do hereby state that I/we have read the entire conditions of the
Quotations and understood them fully. I/We, hereby unconditionally agree to confirm with
and to be bound by the said conditions.
I/We further declare that I/we intend to purchase the above-referred assets from the Bank for
our own use/business and that the information revealed by me/us in the Quotations
document is true and correct to the best of my/our belief. I/We agree that if any of the
statement/information revealed by me/us is found to be incorrect and/or untrue, the
Quotations submitted by me/us is liable to be cancelled and in such case, the Earnest Money
42

Deposit paid by me/us is liable to be forfeited by the Bank and the Bank shall be at liberty to
annul the offer made to me/us at any point of time. I/We also agree that after my/our offer
given in my/our Quotations for purchase of this property is accepted by the Bank and I/we fail
to accept or act upon the terms and conditions of the Offer letter or am/are not able to
complete the transaction within the time limit specified in the Offer letter for any reason
whatsoever and/or fail to fulfill any/all the terms and conditions of the Quotations and Offer
letter, the Earnest Money Deposit and any other monies paid by me/us along with the
Quotations and thereafter, are liable to be forfeited by the Bank and that the Bank has also a
right to proceed against me/us for specific performance of the contract if so desired by the
Bank.

Yours faithfully,

(M/s. ______________________)
Signature of the Offerer
NAME OF THE OFFERER :
ADDRESS - OFFICE:
- RESIDENCE :
TEL. NO. - OFFICE :
- RESIDENCE :
43

Form S-16

Sr. No. (_________)- Cost: Rs. __________/-


(To be given in a sealed cover)
To be submitted on or before 12.00
noon On ___t day of ________ 2010

Ref: Sale of Secured Assets


Secured debt due from_____________________________

QUOTATION
PROPERTY FOR SALE ON
“AS IN WHERE IS AND WHATEVER THERE IS” BASIS
(PROPERTY TAKEN OVER UNDER SECURITISATION &
RECONSTRUCTION of FINANCIAL ASSETS AND ENFORCEMENT OF
SECURITY INTEREST ACT, 2002)

1. Name of the offerer :________________________________

2. Address :________________________________

________________________________

3. Details of Secured Asset :________________________________


(For details see Annexure A)
________________________________

4. Name of Account to which :________________________________


Secured Asset belongs
(For details see Annexure A)

5. Quotation price offered :Rs.______________________________

(Rupees___________________________only)

Copy of the Terms and Conditions duly signed are enclosed.

_____________________________
(Signature of the Offerer)
44

Annexure to Quotation Form

TERMS & CONDITIONS OF SALE

The sale shall be subject to the conditions prescribed in the Security Interest (Enforcement)
Rules 2002 and to the following further conditions:

i) The Quotations will be opened on-------------- at -----------------a.m./p.m.


at-----------------------------------------. In the presence of those offerers who choose to
remain present.
ii) If the Borrower pays the amount due to the Bank in full before the date of sale,
sale is liable to be stopped.

iii) The particulars specified in the Schedule herein below have been stated to the
best of the information of the undersigned, but the undersigned shall not be
answerable for any error, misstatement or omission in this proclamation.

iv) The reserve price below, which the property shall not be sold, is mentioned in
Annexure “A”

v) The offerers may be given opportunity to increase their offer after the Quotations
are opened at the time of opening process on the date and time mentioned above.
The minimum amount by which the offers are to be increased at each round shall
be determined by the officer conducting the sale. In the event of any dispute
arising as to the amount of offers, or as to the offerer, the property shall be once be
again put up to auction.

vi) The highest offerer may be declared to be the purchaser of the property provided
always that he is legally qualified to quote and provided further that the amount
quoted by him is not less than the reserve price. It shall be in the discretion of the
undersigned to decline acceptance of the highest offers when the price offered
appears so clearly inadequate as to make it inadvisable to do so.

vii) For reasons recorded, it shall be in the discretion of the officer conducting the sale
to adjourn.

viii) The person declared to be the purchaser shall pay immediately after such
declaration; a deposit of twenty-five percent of the amount of his purchase money
to the officer conducting the sale and, in default of such deposit, the property shall
forthwith be put up again for sale. The full amount of the purchase money payable
shall be paid by the purchaser to the undersigned on or before the 15 th day from
the date of the sale of the property, exclusive of such day, or if the 15 th day be a
Sunday or other holiday, then on the first office day after the 15 th day. In default of
payment within the period mentioned above, the property shall be resold, after the
issue of a fresh proclamation of sale. The deposit, after defraying the expenses of
the sale, may be forfeited to the Bank and the defaulting purchaser shall forfeit all
45

claims to the property or to any part of the sum for which it may subsequently be
sold.

ix) The Quotations should be accompanied by a Earnest Money Deposit (EMD) equal
to 10% of the Reserve price, by Demand Draft/Pay Order, payable at Pune issued
by a Public Sector Bank/any Scheduled Bank in favour of “Authorized Officer,
Bank Of Maharashtra ,_________________________Region/Branch

x) The Quotations below Reserve Price and/or not accompanied by the EMD shall be
treated as invalid. The EMD will be refunded to the unsuccessful offers within two
days from the date of the opening of the Quotations. The offerers will not be
entitled to claim any interest if the refund of EMD is delayed for any reason
whatsoever.

xi) The offer should be in the prescribed Quotation document, i.e., this document.
This Quotation document duly completed should be put in an envelope, which
should be sealed and superscribed with “Quotation from _______________ for
purchase of ______________________________________________________
(mention the property/properties for which Quotations is submitted)” and the said
envelope be deposited between 11.00 AM and 5.00 PM on or before the last date
of submission of Quotations/s i.e. 01.01.2010 before 12.00 noon.

xii) The successful offerer will have to pay 25% of the offer amount less amount paid
as EMD immediately by Demand Draft or Pay Order payable at Pune issued by a
Public Sector Bank/any Scheduled Bank in favour of “Authorized Officer, Bank Of
Maharashtra” and the balance amount on or before the 15 day of confirmation of
sale by the Bank. In the event of any default in payment of any of these amounts,
or if the sale is not completed by reason of any default on the part of the
purchaser, the Bank shall be entitled to forfeit all the monies till then paid by the
purchaser and put up the property in question for resale/disposal in its absolute
discretion, and the defaulting purchaser shall forfeit all claim to the property or to
any part of the sum for which it may be subsequently sold. Further, all costs,
charges and expenses incurred by the Bank on account of such resale shall be
borne by the defaulting purchaser who shall also be bound to make good any
deficiency arising on such resale and he/she shall not be entitled to make any
claim whatsoever in the event of the property resold.

xiii) Quotations will be opened as per time & date mentioned in “Annexure A” in the
room/premises notified by the Authorised Officer at Bank of Maharashtra,
_____________________________________________________in the presence
of the Offerers and the borrowers/guarantors/property owners or their authorized
representatives who may choose to remain present on the day and time as
aforesaid, interalia, for negotiations for raising their respective Quotations. The
authorized officer may allow inter se offers among the Offerers.

xiv) The property offered for sale is on ‘AS-IS-WHERE-IS-AND-WHATEVER-IS


BASIS’. The Bank, therefore, does not undertake any responsibility to procure any
permission/ license, NOC, etc. in respect of the property offered for sale or for any
dues like outstanding water/service charges, transfer fees, electricity dues, due of
46

the Municipal Corporation/ local authority/CHS or other dues, taxes, if any, in


respect of and/or in relation to the said property.

xv) The Offerers are advised, in their own interest, to verify the area of the premises in
question as also the above and any other dues like Sales Tax, Excise Duty, etc. or
permissions required from the authorities under any applicable Act to their
satisfaction before submitting the Quotations.

xvi) Quotations with conditions will be treated as invalid. Likewise correspondence


about any change in the offers will not be entertained. If any Offerer wishes to
give a fresh quotation on or before the last date prescribed for submission of the
Quotations , he may file a fresh Quotation with appropriate EMD and Quotation
fees.

xvii) The purchaser will be bound by the regulations of the local/any other
authority/Pollution Control Board as applicable in regard to the use of the premises
or properties in question.

xviii) The purchaser will be required to bear all the necessary expenses like Stamp Duty,
Registration expenses, etc. for transfer of the property in his/her name.

xix) If the dues of the Bank together with all costs, charges and expenses incurred by it
or part thereof as may be acceptable to the Bank are paid by or on behalf of the
borrower or property holder/s or guarantor/s at any time on or before the date fixed
for sale or transfer of the secured assts, the assets in question shall not be sold or
transferred.

xx) The Bank reserves its right to accept or reject any or all the quotations without
assigning any reason and in case all the offers are rejected, either to hold
negotiations with any of the offerers or sell the property through private
negotiations with any other party/parties. The Bank’s decision in this behalf shall
be final.

xxi) The Bank will be at liberty to amend/modify/delete any of the above conditions as
may be deemed necessary or warranted in the light of the facts and circumstances
of the case.

xxii) Disputes, if any, shall be within the jurisdiction of Pune Courts only.

Words and expressions used herein above shall have the same meanings
respectively assigned to them in SARFAESI Act, 2002, and the Rules framed there under.

____________________
(Signature of the offerer)
47

Annexure “A”

SCHEDULE OF PROPERTY
Sr. Description of property to be sold with the Reserve Date and time and
No names of the owners price venue of sale.
.
1 Details of immovable properties

2 Details of Movable property

_______________
(Signature of the offerer)
48

S17
TENDER OPENING RECORD SHEET
Bank / FI : Bank of Maharashtra, _______________ Regional Office, Date of Advertisement :
_____________________________________________________________
Borrower : Date of Closing of Tender :
Address : Date of Opening of Tender:

PRESENT
On behalf of Bank / Fl On behalf of______________(enforcement agency)
Name Signature Name Signature

••

Sr. Name of the Tenderer & Person Amount Record Amt Signature Amount of offer increased (Rs.) Signature
No. present on behalf Non EMD Quoted 1st Round 2nd 3rd
Refund- (Rs.) Round Round
able

Authorized Officer
49

Form S-18

Letter to the highest bidder accepting his offer

BANK OF MAHARASHTRA
____________________
(On the letterhead of the Bank)

No. Date : _______________

M/s / Shri ____________

__________

___________

Sub: Acceptance of bid of assets of


M/s _______________________ located at
__________________________
Your bid / offer on __________ (date)

Dear Sir/s,

With reference to above, we are pleased to inform you that your bid of
Rs.____________________ for the purchase of assets, detailed in schedule
hereunder, of M/s _________________________ located at
_______________________________________________ is accepted by the Bank
on the following terms & conditions during auction held on _______________ (Date)
at _____________________________(Place)

1) the assets are being sold to you on “As is, where is” and “What is Where is
basis.

2) The sale price of the assets shall be Rs. ________________

3) You will make ______% i.e. Rs._____________ of the sale price as initial
deposit immediately. Earnest Money Deposit (EMD) will be adjusted against
the initial deposit.

4) The balance payment shall be made by you on or before


________________

5) The possession of assets will be handed over only after payment of price.
50

6) In case the payment is not made as above said, please note that the Bank
shall be at liberty to forfeit the amount deposited by you (i.e. initial
deposit) at the time of auction and to put the said asset to resale without
any intimation or notice to you.

7) On payment of the full amount, a Sale Certificate in terms of and in the form
prescribed by the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002 would be executed by the Bank in
your favour.

You are requested to please contact our Branch Office at _______________ on the
address below for further necessary action in the matter.

Bank of Maharashtra
__________________ Branch
__________________
__________________
Phone :

Thanking you,

Yours faithfully,

(_______________)
Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER

The format may require


modification
depending upon the mode of sale
or
type of asset sold.
51

Form S-19

(Draft of the letter of request to be addressed by the successful bidder for getting
extension of time for payment of remaining amount of 75%)

Date :

From :

_________________
__________________
__________________
__________________

TO
The Authorised Officer &
Chief/Asstt.General /Deputy General Manager
Bank of Maharashtra
____________________
____________________

Sir,

Re : Auction of property at _______________


Conducted by the Bank on ___________
Request for granting extension of time for
Making payment of the remaining amount
Of the sale price

I/We had participated in the aforesaid auction and given our bid for
Rs.____________________, which was increased by us to
Rs._____________________. The Bank has accepted the said bid and called upon
me/us to deposit 25% of the amount immediately and to pay the remaining amount
within 15 days from ___________ i.e. on or before ________________. As per the
terms of the auction, I/we have deposited 25% of the said amount on
_______________ and we are required to pay the remaining amount on or before
________________.

Inspite of my/our sincere efforts I/we have not been able to raise the
remaining amount and as such it is not be possible for me/us to pay the remaining
amount within the time stipulated by the Bank. I am aware that if the said amount is
not paid within the time stipulated, the Bank shall be entitled to forfeit the 25%
amount deposited and to put the property to resale. I/we are however interested in
completing the transaction by paying the remaining amount at the earliest. I/we
may require about 15 days/1 month time to raise the money.

I /we therefore request you to grant extension of one month for paying the
remaining amount of the price.

Yours faithfully,
52

Form S-20

(Draft of the letter to be addressed by A.O. in response to the letter of request given
by the successful bidder for extension of time)

BANK OF MAHARASHTRA
(on letterhead of the Bank)
________________________________________
No. Date :

TO
____________________
______________________
______________________
______________________
______________________

Dear Sir,

Re : Auction of property at _______________


Conducted by the Bank on ___________
Request for granting extension of time for
Making payment of the remaining amount
Of the sale price

We are in receipt of your letter of request dated _______________ for


granting extension of time for making payment of the remaining amount of the sale
price.

The undersigned as the Authorised Officer of Bank of Maharashtra has


considered your application. We allow you extension of time upto
____________________ for making payment of the remaining amount without fail.
Please however note that if payment is not made within the said period, the Bank
shall be entitled to forfeit the amount already deposited by you without any further
notice to you and shall also be entitled to sale the said property in any manner as the
Bank may deem fit and you shall not be entitled to raise any objection or grievance in
respect thereof.

Yours faithfully,

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
53

Form S-21

APPENDIX-III

[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 8 of the Security Interest (Enforcement) Rules, 2002 has in
consideration of the payment of Rs.------------------- (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.

Sd/-

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER

Date:

Place:
54

Form S-22

REGD. A. D.
To,

[Rule – 8 (1)]

POSSESSION NOTICE
(For Immovable Property)
WHEREAS,

The undersigned being the Authorised Officer of the Bank Of Maharashtra 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 8 of the Security Interest (Enforcement) Rule, 2002,
issued a Demand Notice dated ____________ calling upon the borrower,
_______________and guarantors to repay Rs. (Rs. plus
interest @17.50% with effect from
, within 60 days from the date of receipt of the said Notice. The notice was
sent by Regd AD Post and UPC

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
properties described herein below in exercise of powers conferred on him/her under
section 13 (4) of the said Act read with Rule 8 of the said rules on this __ day of
_____of the year 200.

The borrower in particular and the public in general is hereby cautioned not to deal
with the properties and any dealings with the properties will be subject to the charge
of Bank Of Maharashtra for an amount hereinabove mentioned.

The details of the properties mortgaged to the Bank and taken possession by the
Bank are as follows:

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER
55

DATE: / /20

Form S-23
SALE IS SUBJECT TO THE TERMS AND CONDITIONS SPECIFIED IN THE
PRESCRIBED TENDER FORM AND IS ON “AS IS WHERE IS BASIS”

BANK OF MAHARASHTRA

POSSESSION CUM PUBLIC NOTICE FOR SALE


56

Whereas the undersigned being the Authorized Officer of Bank of Maharashtra under
Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest
Act, 2002 (Said Act), and in exercise of powers conferred under Section 13 (12) read with Rule
3 of the Security Interest (Enforcement) Rules, 2002 (said Rules) issued Demand Notices
dated __________ under Section 13 (2) of the said Act calling upon the following borrowers to
pay the aggregate amounts mentioned in the said notices together with interest thereon and
incidental expenses, costs, charges incurred and to be incurred w.e.f. ___________; within 60
days from receipt of the said Notices. Following properties mentioned against the names of
the respective borrowers have been mortgaged to the Bank as a security for the loan facility
availed by the borrower.

The Borrowers having failed to repay the said amount/s, Notice is hereby given to the
borrowers in particular and to the public in general that the undersigned has taken symbolic/
Actual possession of the properties described below in exercise of powers conferred on him
under Section 13 (4) of the said Act read with the Rule 8 of the said Rules on _________.

The borrowers mentioned herein below in particular and the public in general are hereby
cautioned not to deal with the said properties and any dealings with the said properties will be
subject to the charge of Bank of Maharashtra for amounts mentioned against the respective
properties together with interest thereon at contractual rates and incidental expenses, costs,
charges incurred and to be incurred w.e.f. __________ respective dates mentioned above till
the date of payment.

Further, in exercise of powers conferred under Securitization and Reconstruction of Financial


Assets and Enforcement of Security Interest Act, 2002 and Security Interest (Enforcement)
Rules, 2002 and pursuant to the possession of the secured assets of the borrower(s)/
mortgagors mentioned hereunder, the public and all concerned including the concerned
borrowers, their legal heirs/ representatives, as the case may be are hereby informed that
offers are invited by the undersigned for purchase of the properties listed below.

Sr. Name of Borrower Outstandin


No g Amount Description of the Property Earnest Reserve
(in Rs) as Money Price.
on Deposit (Rs.in
________ Lakhs)

SALE IS SUBJECT STRICTLY TO THE TERMS AND CONDITIONS SPECIFIED IN THE


PRESCRIBED TENDER FORM and is on “ AS IS WHERE IS BASIS” and “ AS IS WHAT IS
BASIS”

Time and date of Inspection of property : ________ to ________, by prior appointment


between 10.00 AM to 5.PM.
57

Time and date of Receipt of Tenders : till 2.00 PM ________


Time and date of of opening of tenders : _____ AM/PM on __________.
Place of sale : __________________________
Interested parties may please contact the above office OR Bank of Maharashtra Branch
_____________, Tel No- _____________ & for further details of the properties and tender
forms containing terms and conditions of sale , on or before ………

The Guarantors of the concerned borrowers are also hereby advised to note the above for
their information and necessary action, as may be deemed fit.

Date:

Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER

Form S-24

SALE CERTIFICATE
(For immovable property)
(As per Appendix V read with rule 9(6) of the Security Interest
(Enforcement) Rules, 2002

Whereas the undersigned being the Authorised officer of the Bank of Maharashtra
Thane Region under the Securitisation & Reconstruction of Financial Assets and
Enforcement of Security Interest Act 2002(3 of 2002) and in exercise of powers
conferred under section 13 read with rule 9 of the Security Interest (Enforcement)
58

Rules 2002 sold on behalf of the Bank of Maharashtra Branch Kalwa (Secured
creditor) in favour of,
__________________________________________________________(Purchaser
), the immovable property shown in the schedule below secured in favour of the
Bank of Maharashtra Branch __________________ Thane by M/s/ Shree/ Smt/
______________________________ R/o _______________________. Towards the
financial facility of Term Loan of Rs. __________________Lakhs (Present
Outstanding Rs. (Rs. Forty _________________________________) plus
interest @17.50% with effect from _________ and expenses) offered by Bank of
Maharashtra Branch________________ Thane. The undersigned acknowledges the
receipt of the sale price in full i.e. Rs. _____ Lacs 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

___________________________________________________________________
___________________________________________________________________
__________________
(More particularly described in the _________________( Please mention the title
deed of the mortgagor) dated ______ day of _________ 200 between _________
and Shri. ____________________)

Date Chief Manager/Asst.Gen.Manager

Date : ____________________________ &

AUTHORISED OFFICER

Place: -
Enclosure:- Title deeds .

Form S-25

DRAFT NOTICE UNDER SEC 13(4)(d) of SARFAESI ACT, 2002 READ WITH RULE 4(5) OF THE
SEUCIRTY INTEREST (ENFORCEMENT) RULES, 2002

(to be issued on the letter head of the bank)

To:
Shri /M/s………………………….
……………………………
(Person holding the movables of the borrower)
59

Reg: A/c M/s

The secured creditor ……………………………….. (Name of Bank / FI) has issued a


notice to Shri / M/s ………………………. on ……………..under section 13(2) of
Securtisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act, 2002 and demanded payment of Rs. ………………… within 60 days .
The borrower failed to pay the said amount within the notice period.

It is brought to the notice of the undersigned that you are holding various movables
as mentioned in the Schedule on behalf of the borrower.

Hence, you are hereby directed under sec 13(4) of Securtisation and Reconstruction
of Financial Assets and Enforcement of Security Interest Act, 2002 to hand over the
movables as described in the Schedule hereinbelow to the undersigned within a
period of 15 days. The copy of the notice is endorsed to the borrower also.

Schedule

Date :

Signature
Chief Manager/Asst.Gen.Manager

____________________________ &

AUTHORISED OFFICER

c.c.to:

Shri / Ms……………………………..(Borrower)
Chapter II

DRT & CIVIL SUITS

STEP BY STEP GUIDE FOR FILING AND FOLLOW UP OF DRT & CIVIL CASES

(A) STEPS TO BE TAKEN BEFORE FILING THE CASE

i. Ensure that the documents are well within the limitation period and are
complete in all respects. Take out legible copies thereof.
60

ii. Ensure that our charges are noted on the record of rights and take out latest
revenue extracts of the properties mortgaged to us such as 7/12 extract, city
survey extracts, etc. to decide parties to the proceedings.
iii. Collect all the relevant information such as full names and addresses of the
defendants, their present occupations, details and sources of income, details
of the assets. Providing complete addresses and details of assets would help
in locating the Defendants and to serve notices/attachments on them.
iv. Issue legal notice through Advocate calling upon all the parties viz. borrower,
guarantors to repay bank dues and acknowledgements are kept on record.
v. The securities in possession of bank viz. pledged goods, FDR etc. be
disposed off after issuing due notice to borrower/pledgor. Thereafter suit be
filed for only the balance amount and interest if any.
vi. Note correspondence between borrower and bank which can be used for
proving bank’s claim including audited Balance Sheets.
vii. Calculate amount of claim showing bifurcation of penal interest, other
charges (as required as per decision of the Supreme Court)
viii. Prepare Statement of account together with certificate under the Bankers’
Books Evidence Act. Since now the records are kept in computerized form it
is necessary to affix two certificates in the prescribed format. [Please refer to
Cir.7/09 dated 20-05-2009 a copy whereof is enclosed as Annexure (1 )].

1. Appointment of Advocate

i. Select the Advocate for filing the case from among the panel. While selecting
the Advocate due weitage should be given to the nature of the case, stake
involved, standing and seniority of the Advocate, past experience of the
Advocate in conducting the banks cases and his expertise, equitable
distribution of the cases among the panel of Advocates etc.
ii. Letter of entrustment should be given to the Advocate for handling the case
with all the information for preparing draft of Plaint/OA and copies of the
documents, amount of claim, and statement of accounts be supplied to him.
iii. The Advocate on panel should also be supplied with (a) Any peculiar facts
and circumstances, if any, (b) interim relief’s /injunctions to be claimed and (c)
information about SARFAESI action, if initiated with its present stage (Form
No.S1B). A draft of the Letter of Entrustment is enclosed as Annexure 2

2. Approval of Draft Plaint/Original Application(OA)

The draft Plaint / Original Application should be carefully verified, especially the
facts and figures stated and the reliefs claimed therein. The check points for
approval of Draft plaint/OA are annexed (Annexure 3)

The OA/Plaint should be accompanied by copies of all the documents to be


relied upon, duly indexed and numbered in paper book style and should
accompany the fees, statement of accounts duly certified under the Bankers’
Books Evidence Act. Ensure removal of objections of Registrar’s office, if any,
and the case is numbered. A copy of OA/Plaint should be on record.
61

Plaint/OA should be signed by the Principal Officer (i.e. Branch Manager) or the
constituted attorney . However vakalatnama must be signed by the Constituted
attorney.

For filing suits/Appeals in Civil Court below Rs. 10.00 lacs the fees are to be paid
to the Advocate as per the Schedule of fees prescribed by the respective High
Court of the State on single set basis.

The Schedule of Advocate fees for proceedings in DRT and DRAT are
prescribed vide C.O.Circular No. 7/2000 dated 13 th October 2000. The relevant
portion of the said circular is enclosed as Annexure 4.

3. Attachment /Injunction

Wherever bank is apprehensive of alienation of assets by the


borrowers/guarantors, application for interim relief by way of attachment before
judgement and injunction should be made at the time of or immediately
thereafter.

(B) FURTHER STEPS IN DRT CASES

The DRT is guided by the principles of natural justice and strict procedure of Civil
Procedure Code is not mandatory. The DRT may adopt some of the provisions
of CPC. The officials of the Bank are also allowed to appear and address the
Tribunal. The proceedings are summary proceedings and hence disposal of the
DRT cases is expected to be fast.

a) Service of Notices
The service of the notices can be effected by bank also. So we should ensure
proper and speedy service of notice so as to expedite the proceedings. In case
notices cannot be served for want of correct addresses the permission may be
sought for service through publication in newspaper.

b) Filing of WS by Respondents
After service of notices the parties are expected to file their appearance, or else
the proceedings may proceed ex parte against them. If the respondents file their
written statement, the same should be carefully studied and our comments
should be given on each point to the Advocate . It is also likely that the WS may
contain set off/counter claim, the same should be discussed with the Advocate
and reply should be filed to the same. In case of counter claim the respondents
are required to pay court fees. If felt necessary rejoinder can be filed to tackle
the contentions in WS.

c) Framing of Issues
Normally Issues are framed by the DRT. Issues are the points of dispute
between the parties as appearing from the pleadings. The evidence is by way of
62

affidavit and in rare cases, where it is felt necessary, oral evidence and cross
examination is required or allowed by DRT.

d) Arguments by Advocates
Thereafter DRT hears arguments of the Advocates of the parties.

e) Issue of Recovery Certificate


The Presiding Officer decides the case by delivering judgment to be followed by
Recovery Certificate. After an order is passed it is necessary to follow up with the
DRT office for issue of recovery certificate to expedite the recovery process.

f) Appeal to DRAT by Respondents


If the respondents are aggrieved by the decision of the Presiding Officer, they
have right to file an appeal to DRAT within 45 days from the date on which a
copy of the order made or deemed to have been made by the Tribunal is
received by them. The appellant is however required to deposit 75% of the
amount of debt as determined by the Tribunal before the appeal could be
entertained. However, the DRAT may, for reasons to be recorded waive or
reduce the said amount.

g) Appeal to DRAT by the Bank


In case of the DRT not granting our prayers/full claim, the decision should be
taken to file an appeal considering the grounds available, chances of success
and recovery. In such cases the opinion of the Advocate conducting the case
should be obtained to take decision on filing of the appeal.

In cases where it is likely that the certificate debtor will file an appeal in DRAT it
is advisable to file caveat in DRAT through Advocate to avoid the chances of
court passing the exparte stay.

h) Recovery Proceedings
If the amount ordered to be recovered is not paid, and if there is no stay on
Recovery Proceedings, the matter should be taken up before the Recovery
Officer. The said proceedings are similar to the Execution proceedings in Civil
Court. However, the provisions of the Civil Procedure Code are not applicable.
The procedure to be followed is as per the Second and Third Schedules to the
Income-Tax Act, 1961 and The Income-Tax (Certificate Proceedings) Rules,
1962.

i) Modes of Recovery
 The Recovery Officer after issuance of the notices can attach the movable
and immovable properties of the Certificate Debtor and would sell the
same for recovery of the dues.
 In case of willful defaulters where they have means to pay but they are
not paying, prayer can also be made for arrest in civil prison of the
certificate debtors.
 Receiver can be appointed for management of defaulters movable and
immovable properties
63

 In case the certificate debtors are salaried persons attachment of salary


can also be made
 Recovery officer can also issue notice to the debtors of the certificated
debtor not to pay the amount to him but to recovery officer.

(C) FURTHER STEPS IN SUIT FILED & DECREED ACCOUNTS

a) Service of Summons
Ensure that summonses are served on all the defendants through bailiff by follow
up with the Advocate and Court. If necessary accompany the bailiff for service of
summonses.
In case the summons are returned unserved for two times immediately request
the Advocate to take order for substituted service of summons under Order 5
Rule 20 by pasting or by public notice in news paper. The service of the
summonses can be effected by bank also with the permission of then Court. No
case should be pending for more than six months for service of summons

b) Filing of WS by defendants
After service of summons defendants are required to file their appearance&
written statement within 30 days from date of service or else the proceedings
may proceed ex-parte against them. If the defendants file their written
statement, the same should be carefully studied and our comments should be
given on each point to the Advocate. It is also likely that the WS may contain set
off/counter claim, the same should be discussed with the Advocate and reply
should be filed to the same. In case of counter claim the defendants are
required to pay court fees. If felt necessary rejoinder can be filed to tackle the
contentions in WS.

c) Framing of Issues
Normally Issues are framed by the court. Issues are the points of dispute
between the parties as appearing from the pleadings. To expedite framing of
issues request the Advocate to submit draft issues to the Court

d) Oral Evidence
After framing of issues oral evidence is required to be adduced by the concerned
person before whom documents were executed or who is acquainted with the
signature of the defendants.
A bank official before whom any set of documents are obtained can lead
evidence for the other sets of documents also. It is not necessary that every
person before whom the documents are executed from time to time is required to
be called for leading oral evidence. The facts of the case can be proved by the
present officer of the branch from the records available with the branch.
64

e) Arguments by Advocates
Thereafter Court hears arguments of the Advocates of the parties.

f) Passing of judgment and decree


Thereafter court decides the case by delivering judgment & order. The decree is
framed subsequently. Obtain certified copy of the judgment and decree from the
Advocate by constant follow up.

g) Final Decree
In case of preliminary decree is awarded in case of mortgage suit, branch should
make application for obtaining final decree after the period granted for payment
by the defendants in the preliminary decree. The application for final decree must
be preferred within three years from the date of preliminary decree. Only final
decree can be executed for recovery of mortgage dues.

h) Appeal
In case the Court has not granted our prayers/full claim, the decision should be
taken to file an appeal considering the grounds available, chances of success
and recovery. In such cases the opinion of the Advocate conducting the case
should be obtained to take decision on filing of the appeal.

In cases where it is likely that the judgment debtor will file an appeal in higher
court it is advisable to file caveat through Advocate to avoid the chances of court
passing the order for exparte stay.

i) Execution of decrees

i) After obtaining a certified copy of the decree execution petition must be


filed in the same court which has passed the decree. Though the
limitation period available for filing execution petition is 12 years it
should be filed immediately .
ii) The total amount due alongwith interest as per the decree should be
calculated and given to the Advocate alongwith certified copy of the
decree and details of property charged or other personal assets of the
judgment debtors.
iii) After the decree is passed the same can be executed against both
borrower and guarantor as per our choice unless there is specific order
to the contrary.

j) Modes of Recovery
 Attachment and sale of the movable and immovable properties of the
judgment Debtor
 In case of willful defaulters where they have means to pay but they are not
paying, prayer can also be made for arrest in civil prison of the certificate
debtors.
 Receiver can be appointed for management of judgment debtor’s
movable and immovable properties
65

 In case the judgment debtors are salaried persons attachment of salary


can also be made
 Issue of garnishee orders to the debtors of the judgment debtors to pay
the amount court.

(D) MONITORING AND FOLLOW UP OF DRT AND CIVIL SUITS

. a) At each stage of the proceedings it is necessary to closely monitor the same


for ensuring that timely steps are taken for expediting the proceedings. There
should be no occasions for the bank to seek adjournment. The adjournment
sought by the respondents should be vehemently opposed and request should
be made to impose costs on respondents so as to minimize adjournments.
Follow up should be made both in DRT/Court as well as with our Advocate.
The branch should have upto-date information in all the cases. All the
information and details as may be required by Advocate should be available.

b) It is observed that in DRT cases unless there are counter claims or directions
or offshoots and third party applications, the proceedings are expected to be
over within six months, depending on the work load with the Presiding Officer.

c) The Recovery Proceedings/Execution petitions are however delayed many


times because the Bank is not in a position to give necessary information and
details of assets to the Recovery Officer/Court. In Recovery Proceedings, the
role of Bank officials is more important.

d) In case the account is eligible under SARFAESI branch may also consider
taking action under the Act against the defendants/certificate debtors for
expeditious recovery.

e) In cases where DRT/Court case cannot be proceeded with due to reference


made by the Company to the BIFR, the action under SARFAESI by the creditors
representing more than 75% of the amount outstanding will result into abatement
of the BIFR reference and case with DRT/Court can be revived. Hence it is
necessary to start action under SARFAESI by obtaining consent of the
consortium creditors.

f) The stage of suit be recorded and the next date of hearing should be
diarised.

g) Regional Heads should take review of performance of advocates annually and


ensure for even distribution of cases among panel advocate. Name of panel
advocates should be put on intranet.

h) It should be noted that the complicated suits are assigned to senior


advocates. Higher fees can be considered with the sanction of competent
authority.
66

i) Regional heads shall also examine whether to withdraw the suit in case of
written off accounts depending upon realisable value of security, chances of
recovery and time and cost involved.

j) With a view to effect recovery in decreed accounts by appointing outside


agencies, detailed guidelines have already been issued vide circular No.
AXI/REHAB & REC/25/1999-2000 dated 30-12-1999 and modified vide C.O.
circular AX1/R&L/Cir.1/2003-04 dated 21.04.2003. Based on these guidelines
field functionaries are advised to explore this avenue for recovery effectively.

ANNEXURE 1

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BANK OF MAHARASHTRA
œÏ.ˆÅ¸. ¥¸¸½ˆÅŸ¸¿Š¸¥¸, 1501, ¹©¸¨¸¸¸ú›¸Š¸£, œ¸ºµ¸½ 411 005
H. O.: LOKMANGAL, 1501 SHIVAJINAGAR, PUNE 411 005
67

¹¨¸¹š¸ ¬¸½¨¸¸‡Â ¹¨¸ž¸¸Š¸


LEGAL SERVICES DEPARTMENT
Tel.No. 25536256
Telegram : LOKMANGAL
Fax No. 25513123
E-mail: bomcolaw@mahabank.co.in
Web: www.bankofmaharashtra.in

AX1/Legal/CIR.No.7 /2009 20/5/ 2009

ALL BRANCHES AND OFFICES

Dear Sir,

RE : Banker's Books Evidence Act


Certificate in respect of the statement of account to be filed in Court /
DRT.

You are aware that while filing suits for recovery in Civil Courts / DRT, we are
required to file extracts of the ledger entries in respect of the particular account /
facilities. By virtue of the provisions of Bankers Books Evidence Act , the Bankers
can produce in Courts and DRTs duly certified ledger extract in support of their
claim.

The Bankers Books Evidence Act has been amended to include in the definition of
"Bankers Books" the print outs of data stored in a floppy, disc, tape or any other
form of Electro Magnetic Data Storage Devise. The Act thus requires that print out
of entries shall be accompanied by the following certificates :-

a) that it is a printout of such entry or a copy of such printout by the principal


accountant or branch manager;
and
b) a brief description of the computer in the specified form by a person in-charge
of Computer System.

RBI has in recent communication instructed to ensure that whenever banks submit
any data stored in computer systems as evidence under Bankers Book Evidence Act
in any Court or DRT the computer print-outs should invariably accompany certificate
in prescribed format under the Act.

For your ready reference we are enclosing the text of the certificates for use and
compliance by the Branches. Please incorporate appropriate details about the
system/software being used in certificate (B).
68

Yours faithfully,

DY.GEN. MANAGER
RECOVERY &LEGAL SERVICES

Encl : as above.
69

(A) Certificate tobe given by non-CBS (bibas) branches

CERTIFICATE

(A) Certified that this is a print out of the entries made in the computer in
respect of ________________ accounts of _______________ maintained by
the Branch in computerized form.

Deputy/Asst./Chief/Branch Manager/ Accountant


______________ Branch

(B) Certified that the computer system of ___________________ Branch is Local


Area Network consisting of a file server and user terminals. The data is stored in file
server and can be accessed by users. The operating system is *
______________for LAN. The Banking Software is *_____________ developed by
*________________and used by Bank of Maharashtra _________________Branch.

A. Access to system to enter the data or any other operation is given to the
authorized users only and every user has got his own password and there are
various other check points so that unauthorized person cannot operate the
system.

B. It is not possible to delete or alter any particular regarding data once entered
in the system. Every day at the close of business checking of computer
printouts of the data entered on that day is done with vouchers to verify that
all vouchers are entered into the system and there is no data entered without
supporting vouchers.

C. Every day the back up of data is taken two to three times on magnetic tapes
which can be restored into system in case of need.

D. There is a provision / utility in Novell Netware by which data is copied on a


magnetic tape. These tapes are stored in fireproof strong room to prevent
any damage.

E. The backup utility copies entire data on magnetic tape and if any data is not
copied the system given caution message to enable users to take fresh
70

backup. After successful backup, system gives a message of successful


backup.

F. The storage devices are labeled manually and electronically.

G. The tapes are stored under custody of System Administrator and no other
person has access to tapes.

H. The access to system room is restricted to System Administrator only. No


unauthorized person can enter in the system room. The access to the data is
also password protected. It cannot be accessed by any unauthorized person.

I. There is UPS (Uninterrupted power Supply) system, which provides power


supply to system in case of electricity failure to avoid any damage to data.
There are also various checks and rights provided in the system to the users
according to their grades / ranks. Annual Maintenance Contract has been
made to take care of operating system and hardware as a preventive
measure.

Date:

Place:
System Administrator
_ ___________________
Branch.

( *) Appropriate details regarding operating system, Software & Software Supplier be


incorporated
71

(B) Certificate to be given by branches under CBS)

CERTIFICATE

(B) Certified that this is a print out of the entries made in the computer in
respect of ________________ accounts of _______________ maintained by
the Branch in computerized form.

Deputy/Asst./Chief/Branch Manager/ Accountant


______________ Branch

(B) Certified that the computer system of ___________________ Branch is


under CBS and database is Centralised.. The data is stored in Central Data Server
located at Data centre /DR site of the Bank located different locations. The data can
be accessed only by authorized users. The front end operating system is Win XP
and backend server OS is AIX-IBM The Banking Software is B@ncs24 provided by
M/s TCS Limited_and used by Bank of Maharashtra _________________Branch.

A. Access to system to enter the data or any other operation is given to the
authorized users only and every user has got his own password and there are
various other controls in palce so that unauthorized person cannot operate the
system.

B. It is not possible to delete or alter any particular regarding data once entered
in the system. The daily control reports such as voucher verification reports
are generated centrally and made available to every branch on next day..

C. The data is backed up remotely at DR site of the bank by a method called “


redo log shipping” . Data back up is also taken on DLT media locally at data
centre.

D. These tapes are stored in fireproof strong room to prevent any damage.

F. The storage devices are labeled manually and electronically.

G. The tapes are stored under custody of System Administrator /Chief Manager
Data center and no other person has access to tapes.
72

H. The access to these media is restricted to System Administrator only. . The


access to the data is also password protected. It cannot be accessed by any
unauthorized person.

I. There is UPS (Uninterrupted power Supply) system, which provides power


supply to system in case of electricity failure to avoid any damage to data.
There are also various checks and rights provided in the system to the users
according to their grades / ranks. Annual Maintenance Contract has been
made to take care of operating system and hardware as a preventive
measure.

Date:

Place:
System Administrator
_ ___________________
Branch.

( *) Appropriate details regarding operating system, Software & Software Supplier be


incorporated
73

ANNEXURE 2(A)

Letter of entrustment to be given to the Advocate at the time of entrusting


suits/Execution Petition/appeal in Civil Court.

Shri/Smt._________________
Advocates,
_________________________
_________________________

Dear Sir,/Madam

Ref: Intended Suit / Execution proceedings against


______________________________Account with our
____________________Branch, Suit claim / Decree Amount Rs.
______________________________ Documents valid upto
_____________________ Decree dated ______________________.

We are pleased to appoint you as an advocate to act for and on behalf of our Bank in
respect of above proposed Suit/Decree Execution to be filed in _______________
court, on the following terms and conditions.

1) You will issue legal notice to the captioned borrower and co-signatories /
guarantor. Calling back the advance/s on the basis of documents executed and
securities offered therefore by the borrower and counter reply the replies received
from the borrower and co-signatories to such legal notices, if necessary.

2) Professional fee of Rs. ________ will be paid for issuance of legal notice. In
addition actual postal charges, typing expenses and other charges for issuance of
legal notice will be reimbursed.

3) You will draft the plaint/s in the above proposed suit, incorporating the
necessary pleadings and prayers, including cost of producing witness (because
some times witnesses come from outside and their travel expenses plus diem
allowance are on higher side) and for other relief eligible under order XXA R1 and
R2. You will send the draft plaint to us for our approval. Please include in the
prayers clause suit claim with future interest at quarterly rests.

4) You will take steps to file the plaint/s in time within the limitation period, as
applicable to the case in the appropriate court.

5) You will keep us informed of the progress in respect of matters entrusted to


you in following manner every month by the 5th day of the month.
74

Sr.No. Brief No. Name of A/c Court Suit No. Date Stage

6) You will take necessary steps to protect the interest of the Bank in the above
suit, by defending application or proceedings, as may be filed or taken by the
defendant/s in the suit.

In case of any counter claim filed by the defendant/s your professional fees for the
same will be quantified by the Bank at the time of filing of Bank’s reply thereto.
Payment of professional fees will be subject to deduction of Income tax at source as
per applicable laws.

7) As soon as the decree is passed in favour of our Bank or otherwise, you will
give details of the same to us within 2-3 days , about the order passed by the court.
In case of adverse judgment or if the prayers are not granted by the Court, you will
give your opinion and recommendations about the course of action, desirability of
filing appeal, chances of success etc. so as to enable the Bank to take further steps.
You shall apply to the court for obtaining certified copy of the judgment, Decree or
order/s, immediately after the suit is disposed off. You will apply to the court for
refund of court fees, if awarded by the court, on the day of judgment or latest by next
working day, under intimation to us. Also ensure that expenses of calling our witness
are also awarded by the court in cost of suit.

8 (a) You will agree to work on behalf of our Bank on the professional fees
prescribed by the respective Court Rules. An equivalent to half of the said
professional fees will be paid to you at the time of filing suit. In suit, which are
contested by the defendant/s, you will be paid fees on single set basis, at the
scheduled rate, which are prescribed by the respect Court Rules. In case the suit
claim is for more than Rs.1/- crores, consolidated professional fees will be paid.

(b) In the suits, which are decided ex-parte, you will be paid half of the
professional fees on single set basis. However, if full fees are awarded by the court
and the same are incorporated in the bill of costs, attached to the decree, then we
will pay you full fees as per single set only.

( c ) In respects of suits which are decided by compromise / consent terms, you will
be paid 1 / 2 professional fees.

(d) In case of execution of decrees, professional fees shall be paid at the rate of
50% of professional fees payable in suit on single set basis. If pending execution
proceedings , the decree is satisfied by compromise then you will by paid 50% of
professional fees agrees for execution of decree. (i.e. 25% of the fees payable in
regular suit)

(e) In case the suit is withdrawn upto the stage of W.S. of defendant, professional
fees will be 1 /2 only.

(f) In case of preliminary decree, in suit on mortgage, residual professional fees


will be paid after certified copy of final decree is obtained
75

(g) In suits, where you will be required to file interim applications, injunction,
attachment, appointment of receivers etc. on behalf of the Bank, you will be paid
additional professional fees for which interim application/s of Rs.500/- of 10% of
professional fees whichever is less. In additional, you will be paid the process fess
and miscellaneous expenses, provided notices of such applications are required to
be served on the defendant/s as stated in para No.10.

(h) In case you want to surrender the brief to the Bank for nay reason whatsoever
you shall refund 25% of the full fees i.e. 50% of the half fees paid to you at the time
of entrustment of the suit.

9) Process fees: You will be paid on account payment of Rs.15/- per defendant,
as process fee at the time of filing of suit. You are required to obtain specific
sanction / permission of the Bank for paying process fees for the further time. You
are also requested that, if the notices/summons are not served but re required to be
re-issued for service twice, then you should make an attempt to obtain pasting order,
as per Order No.5 Rule No.20 of C.P.C. If the summons are not served in the above
manner, then you should obtain the sanction from the Bank for expenses to be
incurred for publication of summons/notices in the local newspaper/s and you will be
paid an amount , required to such publication. You should see that such expenses
towards the publications are incorporated in the bill of costs that may be ultimately
taxed in the decree. You should give a copy of such public notice to our branch.

10) Miscellaneous expenses : At the time of filing suit, you will be paid on
account payment of Rs.50/- for the first defendant and Rs.10/- for every additional
defendants. If you are required to incur expenses over and above the amount paid
to you for miscellaneous expenses at the time of filing suit, then you may request the
Bank to pay the amount as per the vouchers or give a statement that you have
incurred the expenses and give particulars thereof which shall be reimbursed by the
bank.

11) You will agree to accept the work relating to execution of decree, when
entrusted to you.

12) Xerox copies of all original documents and papers, duly completed in respect
of the captioned account are sent herewith. You are requested to return the file
continuing remaining papers, documents, etc. along with four copies of plaint to the
branch for submission to higher authorities.

13) You are also requested to note that you will not accept any brief / case against
the Bank.

14) You are requested to communicate to us for securing any additional


documents, including correspondence between the borrower and branch manager,
vouchers, cheques, other papers and information about the development/s in the suit
concerning attendance by the branch staff for the purpose of effective service of
summons, leading evidence for the plaintiff bank and facts and other such related
matters.
76

15) For leading evidence of bank official, sufficient time period may be sought.
You shall inform us well in time so that the officials can be called from their present
places of posting.

16) The Bank may at any time in its discretion withdraw from you any case or brief
or proceeding or matter and may discontinue yourself as Bank’s advocate without
assigning any reason therefore and without paying to you any further or additional
fees.

17) You are requested to confirm the above and return office copy thereof, along
with your signature, as acceptance of the above terms and conditions.

18) If you, for any reasons beyond your control desire to withdraw from the panel,
you will have to return professional fees paid to you alongwith all the papers, notes
and your no objection letter.

19) You will be paid Court Fee, misc. exp., process fees and 50% of professional
fees in advance. Please send us estimate of cost so s to effect the payment.

Please acknowledge receipt.

Yours faithfully,

CHIEF MANAGER /BRANCH MANAGER

c.c.to: DY.G.M. / Asst. General Manager / R/M/


___________________ Region
____________________
For information

I accept , agree with, confirm and abide by all the aforesaid terms.
I undertake not to return the briefs once entrusted for any reason whatsoever and
further undertake to defend the Bank till final decision in the matter.

(Advocate’s signature)
77

ANNEXURE 2(B)

Letter of Entrustment to be given to the Advocate at the time of entrusting


DRT Application/Appeal

BANK OF MAHARASHTRA
.

Tel.No. Fax
Date:
REF: No.

Mr./Mrs.-------------------,
Advocate,
------------------------------
------------------------------

Sir,Madam,

Re: Entrustment of Matter – Original Applications/Appeal


To be filed before DRT/DRAT in respect of
------------------------------------------------- account
with our Branch.
========================================

We are pleased to appoint you as an advocate to act for and on behalf of our Bank in
respect of above referred application to be filed with DRT/DRAT,
___________________on the following terms and conditions. The Xerox copies of
the documents to be relied upon and extracts of statements of accounts duly certified
as per the provisions of the Bankers Books Evidence Act are enclosed. Please
inform if any other documents and papers are required by you.

1. You would issue legal notice before filing application. If the notice is already
sent, you will ascertain whether the same is proper and sufficient with
acknowledgement or whether fresh notice is required to be issued.

2. You will draft the application/ Appeal in respect of above account in a form
prescribed under “Recovery of Debt due to Banks & Financial Institutions Act
1993”.

3. You will incorporate the prayers for Interim Orders i.e. Stay Order /
Restraining Orders / Injunction in respect of all the properties assets owned
by all the Respondents, whether such assets / properties are charged to the
banks or not. List of the personal properties of all the respondents (though
not charged to bank) and relevant documentary proofs of their ownership are
attached. (in case of OA)
78

4. You will send the draft copy of application/Appeal to us for our approval on
facts and figures.

5. You will be paid the professional fees as per schedule prescribed by the Bank.
The payment of fees will be paid as follows :

i) 50% of the scheduled fees would be paid by way of advance at the


time of entrustment,
ii) 25% of the fees would be paid after the case is decided and
Recovery Certificate is issued and the remaining
iii) 25% fees would be paid after RC is executed.

a) It is agreed that When the application / proceedings are decided


Exparte, you will be paid 50% of the professional fees
b) If the application / proceedings are decided in terms of
compromise / consent terms you will be paid 50% of the
professional fees.
c) In case the application / proceedings before DRT/DRAT are
withdrawn by our Bank the 50% of the professional fees will be paid
to you.

6. Fees to be paid for interlocutory/interim orders, applications would be as


prescribed by the Bank.

7. You will take steps to file the application before DRT/DRAT in time within the
period of limitation as applicable to the case along with its annexures duly
numbered and indexed as required by DRT Office. You will ensure that
objections, if any, taken out by the office of DRT are immediately removed and
the Application is numbered.

8. You will communicate to us in time the requirement of the DRT/DRAT, for


attendance of branch staff, for the purpose of effective service of Notice /
Summons and recording evidence / witness.

9. You will communicate the proceeding number allotted by DRT to the


Application and keep the Branch informed about the further steps and dates
fixed from time to time, well in advance.

10. You will take necessary steps to protect the interest of the bank in respect of
the said proceedings before DRT/DRAT .

11. You will remain present before DRT/DRAT, on all the dates declared as per
case list of DRT/DRAT, relating to the said matter and also on the date of
pronouncement of Judgment / Issuance of Recovery Certificate.

12. You would defend all counter claim, set off, petitions filed by the Respondents.
Fees for the same should be first discussed and got settled.

13. You will ensure that the advocate fees will be included in the cost to be
awarded by the tribunal as per the rules and you will produce a certificate of
79

your fees to DRT/DRAT, for that purpose on or before the date of


pronouncement of Judgment.

14. You will ensure that the other legal expenses, including as Witness Bhatta,
etc. shall be separately specified in the Judgment.

15. You will deliver the copy of Judgment to our Office immediately on
pronouncement of the judgment. In case of any adverse judgment or if the
prayers of the Bank are not granted you will also give your remarks, opinion
and advice on the further steps to be taken and the possibility, chances and
advisability of filing of appeal.

16. You will take every steps for obtaining Recovery Certificate at the earliest after
verifying that all reliefs granted are properly incorporated and that the
advocate fees and other legal costs are included in the Recovery Certificate.

17. In case you want to surrender the briefs of the matter entrusted to you to the
Bank for any reason whatsoever you will refund 50% of the fees, which is paid
to you at the time of entrustment of the matter.

18. You will will not accept any brief / case against our bank.

19. You will not use any legend containing Banks name/symbol in your letter
heads, sign boards, name plates, etc.

20. You will note that the bank may at any time, at its discretion, can withdraw
from you any proceedings / briefs / matter and may discontinue you as a
Bank’s Advocate without assigning any reason therefore and without
paying any further additional fees and you will give no objection for
entrusting the case to the Advocate.

You are requested to note and confirm the above terms and conditions, and return
copy of this letter with your acceptance to the said terms and conditions.

Yours faithfully,

(Signature)

I/We accept all above terms and conditions.

ADVOCATE
80

ANNEXURE 3

CHECK LIST FOR VERIFYING THE CONTENTS OF THE PLAINT /DRT SUIT

1. Name of the Court & Place

2. Name and address of the plaintiff i.e. our Bank with addresses of the Head
Office and Branch.

3. Names, description and addresses of the defendants

4. Description of the suit transaction i.e. application for facility, granting of


facility, details of documents executed, renewal of documents, particulars of
property charted to use as a security.

5. Paragraphs dealing with the defaults in repayment / failure to operate the


account satisfactorily etc. Reference to various demand notices with
particular reference to final demand notice.

6. Breakup of the suit claim i.e. ledger balance +penal interest+ unapplied
interest.

7. Statement of account duly certified as per the Bankers’ Books Evidence


Act.

8. Prayers for judgment and decree:

a) for suit claim


b) for further interest on the suit claim at the specified rate from the date of suit
till realization.
c) For the sale of the hypothecated/mortgaged property
d) For the costs of the suit including the cost under Order XXA Code for Civil
Procedure.

9. Signing of the plaint for the Bank

10 Verification of the plaint by the Manager in his name.


81

ANNEXURE 4

SCHEDULE OF PROFESSIONAL FEES PAYABLE TO ADVOCATES FOR THE


PROCEEDINGS BEFORE DRT/DRAT

1. Fresh cases application filed/to be filed before DRT

Debts due/Bank’s claim in Application Professional Fees payable to Advocates


1.Rs.10.00 lacs Rs.12,000/-
2.Above Rs.10.00 lacs Rs.12,000/- plus Rs.500/- for every
Rs.1.00 lac claim above Rs.10.00 lacs
subject to maximum ceiling of
Rs.30,000
3. Clerkage/Misc.expenses 5% of the professional fees as above
as and when paid
.
MODES OF PAYMENT

Amount When to be paid


1 .50% of the fees above On filing Application before DRT/DRAT
2. 25% of the fees as above On obtaining Recovery Certificate
3. 25% of the fees as above On executing Recovery Certificate
finally

PROFESSIONAL FEES – SOLICITORS/SENIOR COUNSELS –

The engagement of solicitors/senior counsels shall be avoided/discouraged.

However in following circumstances, the matters may be entrusted to


solicitors/senior counsels.

1. The matters, where the genuine need for their expertise is felt.
2. The matters of highly complicated nature, where question of
laws and facts may arise
3. The matters, where Bank’s claim is heavy

THE PROFESSIONAL FEES PAYABLE TO THEM SHALL BE FIXED THROUGH


NEGOTIATIONS PRIOR TO THE ENTRUSTMENT. THE MAXIMUM FEES
PAYABLE IN ANY CASE SHALL NOT EXCEED RS.75,000/-.