raju (director) 02 July 2013

Recall notice u/s 13(2)

Hai, I had taken a loan of Rs.28 lac on 1/6/2012 from a local bank , and till date we have paid the installments but its not done on dates., I have recd a recall notice from bank informing that they are not going to renew by SCC a/c and term loan and issued a ( recall notice) u/s 13/2 and 70/34 , mentioning certain reasons like not maintaining the account, irrregular payments chq rtns . They have asked me to pay the whole amount with in ten days. It was also mentioned that my account had become NPA as on 31/5/2013. I wrote a letter to the bank, informing that i had paid the installment on 2/6/2013 and its out of npa , i have also requested them to give me three months time to clear the issue. I had also written the details of the payments recviable, and the current project's . bankers are not in any mood to listen, and today morning they visted the house and harrased my parents and told them if the loan is not cleared in two day's the property would be acquired. need advice regarding the same. regds raju

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5 Replies

c.p.s. ramachary (1500) 02 July 2013

Having borrowed you are responsible to repay the same. Your account might have slipped to NPA category long back. You may approach the bank with payment of arrears due and also penalties if any for default and get the account upgraded to PERFORMING ASSET from NON PERFORMING ASSET. If you still cause any further delay the bank will physicall dispossess you from the premise mortgaged to the bank. RBI circular provides that on payment of arrears of defaulted amounts the bank is bound to upgrade the account once. If you again default your repayment no body can save you from te action of the bank that may be taken under SARFAESI Act.

Anjuru Chandra Sekhar (Advocate ) 03 July 2013

@Raju. After DN was served under 13 (2) you can make a written representation to the banker or raise an objection in writing. On receipt of it the banker should reply back to you within a week's time under section 13 (3A) of the Securitization Act. If he does not reply or proceeds for taking steps under Section 13 (4) without replying to your written representation, you can apply to DRT and get stay and eventually the DRT will restore the possession to you and direct the banker to restart the process of Encorcement right from the stage of issuing Demand notice.

@Ramachary Garu. Hello Ramachary Garu, how is Mr. Hussain (at pridhvi)?

c.p.s. ramachary (1500) 03 July 2013

Mr Hussain is doing good and he is one of the decent persons in Pridhvi

(Guest)

Rightly adviced by Chandrashekhar as per provisions of Banking Rules and SARFAESI Act

MANOJ HARIT (LAWYER) 08 July 2013

Mr. Raju,

U r post is not clear. A recall notice is not a notice u/s 13(2). So be clear whether it is a recall notice or notice u/s 13(2)?

If it is a notice u/s 13(2) then the advise of Mr. Chandrashekhar is correct.

Only one suggestion - do not at any stage, through u r letters request for "time" from the Bank. Instead ask the Bank to do what is right for u r business / industry.

Let them refuse but keep asking for u r valid requirements supported by documentations. No Bank can forcibly terminate a loan account. Always remember that a Banker also has a "duty of care".

Manoj Harit