Impleading of guarantors of a company admitted in BIFR

Dear Sir/Madam, I was an ex director in an IT company, which is sick now & has been admitted in BIFR during June 2015. Next hearing date yet to be listed. I've offered my personal property as security to the company, which has been mortgaged with the Bank. Company has defaulted the loan. Now, the Bank has taken action under SARFEASI & trying to sell my property. Can i implead as a Guarantor in BIFR proceedings with the company? Will it stop the Bank from Proceeding with Auction sale of my property till BIFR proceedings are completed? Please advise. Thank you Hasan

Answers (2)

127 votes

Quite possible.You are one of the directors of the company.It has gone sick and admitted in
BIFR. The property given to the banker is security on behalf of the company which is sick now
and gone for BIFR. You can certainly move to court to stop bank trying to sell the property.It is very much possible in accordance with law to stop through court from disposing your property.MSKRISHNAN

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350 votes

You can implead as party in the BIFR proceedings, however without going through the case papers proper advice cannot be given at this stage for stopping the auction sale. If SARFEASI notice is not given as per law it can be challenged.

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