Options Available with Mortgagors for Their Money

Options Available with Mortgagors for Their Money

1. Normal Civil Suit For Recovery.

2. Commercial Suit under CC Act, 2015

3. Summary Suit under Order 37 of Code of Civil Procedure, 1908. Order 37 can be applied where written contracts are there or where a debt is to be recovered. Specific averment is needed in plaint. Time limit given to defendant is 10 days under Order 37 Rule 3 and not 30 days. It is not necessary that the suit filed under Order 37 has to be based on a written contract. One can see S.2 (e) of Indian Contract Act, 1872 which does not mandates that all kinds of agreements are to be in writing or to be signed. Further, S.2(h) of ICA, 1872 does not says that only written or signed agreements are contracts. S.10 of ICA, 1872 explains further what agreements are contracts. S.23 of ICA, 1872 notes that when provisions of "any law" is defeated by consideration or object of an agreement, then such an agreement cannot be said to be lawful ; Registration Act, 1908, Indian Stamp Act, 1899 and Transfer of Property Act, 1882 are laws. S.23 of ICA, 1872 declares effect of unlawful agreements and makes them void ; S.2(g) of ICA, 1872 says agreements not enforceable by law are void. 

4. Proceedings under SARFAESI Act, 2002. S.14 of SARFAESI Act, 2002. Secured creditor. NPA = sub standard, doubtful or loss asset. Financial institution. Mortgage. S.13 (1) of Act. S.13 (2) for default and NPA and 60 days' notice. S.13 (3A) representation. For NBFCs it is Rs. 20 lacs by Gazette 12 February 2021 but MPHC says even for less than Rs. 20 lacs.