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Prasham (Proprietor)     17 January 2016

Settlement below original amount

Dear Sir/s,

 

I am a guarantor to a loan of my Nephew. A case is going on for recovery of the loan. Loan was taken from Gujarat's Co-operative bank which was later bought by a Multi State Co-operative bank. There have been severe negligence on part of the original bank as well as the new bank. 

 

They have sued me in 2 courts for creating burden on my properties and similarly I have sued them in 2 courts against their negligence in my case as well as overall operations. They are under lot of pressure now and have invited us to settle for the original amount and have waived off all the interest of last 10+ years.

 

Since there is so much pressure on the bank to reduce NPA as well as if I go ahead with my cases against them, their negligence will become public and dent their image immensely. My question is that that is it possible that they may settle the case with me at an amount lesser than the original sum ?



Learning

 2 Replies

Kumar Doab (FIN)     17 January 2016

A settlement may be an adverse entry affecting credit rating of debtor.

You may ensure that it does not affect you and bank gives an undertaking to cleanse your credit history and settlement shall not affect your loan taking ability in future.

Let the borrower settle the debt.

Why the borrower is not settling the debt?

 

Can you provide detailed inputs how did you succeed in pressing the bank.It shall help many readers.

 

 

Prasham (Proprietor)     18 January 2016

1) The debtor is bankrupt. There is no problem about his credit rating.

 

2) Did you refer to my cibil rating ? Thanks for the tip.

 

3) Borrower doesn't have any money but yes I understand your point. 

 

4) There were many negligent points of the bank which we highlighted. We kept on pursuing the odds of the bank and highlighted them to RBI, Co-operative Banking department of Gujarat along with cases in the local courts. Can't give you full details as the case is still on. If you want to know anything specific send a PM.

 

Regards


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