What is the effect of non-publication of notice in vernacular paper under SARFAESI Act?
In SARFAESI action, the banks or the financial institutions being the secured creditors can take possession of the mortgaged assets belonging either to the borrower or to the guarantor. Section 13(4) authorises this act of the secured creditor. The stipulations to be followed by the secured creditor is the publication of possession notice in two leading news papers. Of this one should be in vernacular language. I have mentioned in another post in this blog that the non-publication of the possession notice after taking possession of property in news papers will vitiate all actions taken by the secured creditor. Sub-rule 2 of Rule 8 of The Security Interest(Enforcement) Rules, 2002 says that the possession notice has to be published also in one vernacular newspaper having sufficient circulation in the locality. This is a mandatory provision. Various courts have upheld this provision stating that the non-compliance of this will make the measures taken by the Bank irregular and those will be vitiated.