Timeline of collateral recovery under SARAFESI

Gopi (Engineer) (123 Points)

04 January 2022  

A few partners had provided their personal property as collateral for a term loan from a nationalized bank.

Unfortunately the company didn't do well and couldn't pay the EMIs.

The bank has sent letters stating that under SARAFESI act, the personal property given as collateral would be possessed by the bank.

Can anyone please tell if the bank would take over the property given as collateral only after they sell the primary assets (land, building, machinery) and if the value is not sufficient to cover the outstanding loan and interest?