Dear Friends I need Guidance.
I Received Recall Notice Under section 13(2) is given to me as well as my partners & guarantor. This notice I fell is undue/illegal because as per my calculation of the account it deem fit for section 31(j). in 31(j) it is clearly mention that
31The provisions of this Act shall not apply to-
(J) any case in which the amount due is less than twenty per cent. of the principal amount and interest thereon.
In my case The total outstanding Dues on Dated 19/03/2012
is Rs. 11,20,102.58 /- (total amount of CC Limit & Term Loan)
Total amount Paid till the Date 29/02/2012 is equal to 68,57,594.44 (Principal Plus Interest & penalty Interest of Both Account.).
20% of above amount is equal to 13,71,506.88 /- So due amount is less then 20% & their for The SARFAESI Act is not applicable.
As per my understanding even if we are running above account irregularly But still Trying to co pup with EMI (we have Dispute Within the Partner & Case is pending in Mumbai HC) we still paying. The due date for EMI is 20th of march (the over due was 3.11 Instalment). & We have given oral request that we will pay on 26th of march & so we paid inspit of notice section 13(2) of SARFAESI Act.
We have clear-cut intention to pay. But action taken by bank is spoiling the situation & we have to wait till bank action under 13(4), which is expansive for us under present Circumstances for me.
We have rise the quarry & our consent on 26/03/2012
But no reply from the bank?
We also clear our position & requested for nine month to pay rest amount
With cheque of instalment with separate letter on 26/03/2012 .
(payment have been accepted by Bank)
but no reply from the bank?
How do we stop further action of bank Under SARFAESI Act?
Can you will guide me about Section 31(j) of SARFAESI Act. Any reference case in DRT or Hc .My bank is not agree upon my opinion about Section 31(j) & they have their wane version.
Raj