Subbu (None) 24 September 2013

Consumer forum and drt (sarfaesi)

I lost my job and am currently unemployed. My case for deficiency of service and unfair trade practice against a Pvt. bank is pending before Consumer Forum in arguments stage. My home loan A/C was wrongly classified as NPA,when in fact it is surplus and doesn't warrant payments for another 6 months or so, due to undue accelerated rate of recovery resorted by the bank so far. They have obviously violated RBI guidelines.The bank's case being weak with CF resorted to invocation of SARFAESI Act for recovery so as to checkmate me. My objections to their Demand Notice under 13 [2] are not answered. They have pasted Notice on the property last week. Although I am aware that I need to file an appeal with DRT within 45 days, I do have enough money to deposit with DRT. Any expert advice on the following questionnaire would be highly appreciated.

1) What are my options if Consumer Forum decides in my favour but the property is sold by the bank despite my prayer with CF for a restraining order to stop the sale?

2) If I am able to arrive at some compromise with bank, can I still continue with my Consumer Forum case ?

3) Can borrower himself plead his case in DRT ?

4) Is there any remedy when the borrower cannot afford to deposit any substantial amount of money inorder to file an appeal ( that is also heard) with DRT ?

5) Even after sale, can I approach any other judicial authority in future (when I am comfortable with money) and get back by property or equivalent compensation?

Thanks & Regards,

Subbu

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5 Replies

adv.raghavan (Advocate,9444674980) 24 September 2013

Both are different suit altogether, u consumer suit for deficiency in service, and DRT proceedings is for non payment of dues, appear before DRT and present ur case thru advocate and lay down all the facts ,and i am sure based on your facts the tribunal will award stay on [proceedings by imposing nominal amount.. consumer court cannot order bank to stop recovery proceedings,2,yes u can proceed with your CF case,3,It is better to go thru counsel,4, if the borrowr is not able to pay the stay amount, the stay goes and bank is free to go ahead. 5, yes u can subject to availability of property.

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(Guest)

(1) If you are confident enough to win your case before Consumer Forum, you may also win your case before DRT. SARFAESI Act has provision for restoration of possession if your SA is allowed. Kindly note CF does not have jurisdiction to stop the sale.

(2) The two issues are different. The one before CF is with respect to defeciency. The other is with respect to recovery.

(3) Borrower can appear in person,

(4) Not according to me.

(5) Yes, as stated in (1) above and provided the legal remedy is within time.

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Subbu (None) 25 September 2013

Thanks to Mr Thakkar and Mr Raghavan for their valuable advice. I can win in CF but cannot afford approaching DRT. It is understood that most of bonafide borrowers victimised by arrogant/erring bank officers or processes cannot seek remedy due to the prohibitive amount that need to be arranged for. In my opinion, they should do away with this requirement and replace it with penalisation of the borrowers by imposing heavy fines when their case is found to be malafide. The burden of judicial work has been avoided by making justice unaffordable to many. Thanks !

adv.raghavan (Advocate,9444674980) 25 September 2013

Mr.subbu, DRT proceedings differ from case to case, and do not generalise cases. if u are sure about your case u may have a positive nod from the tribunal. it is up to u to take a call.

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Subbu (None) 08 October 2013

If Bank is able to auction/sell the flat under SARFAESI due to my inability to arrange for money required at DRT. Can they ask Consumer Forum to quash the proceedings on consequential grounds saying, they have recovered the money legally and I have not challenged them at DRT. Advance thanks !