I wish to seek a clarification from you that, when a gold article has been pledged to a cooperative credit society and upon default of Pledger to repay the loan, the Society auctions the gold article. But recovers insufficient amount. Thereafter, the Society seeks recovery certificate under section 101 and the Asst. registrar awards it.
My query is, firstly, once the society has auctioned the gold article, whether it can still seek recovery certificate?
Secondly, can a society sell/auction the Gold article without obtaining Recovery Certificate?
I C Naik
The Lender (Society) is entitled to recover loan from the sale proceeds of the Pledged Article and balance loan if any by resorting to Section 101 procedure.