arvind (Promoter) 25 December 2012

Nationalized banks

hello there once again!

the loanee becomes NPA in year 2010 against property loan in a nationalise bank. in year 2012 the bank takes the possession of that property. Two days ago, loanee receives another notice from bank (not legal notice, it is just signed by branch manager) that if with in 15 days the amount is not deposited then they will be published in news paper with photo of loanee and his gurantor.

my question is:

1. once the bank has taken possession of the property then why should the branch manager write another letter to the loanee to deposit the amount (possession was taken approx 6 months ago)?

2. Can the bank publish name with photograph of loanee and his gurantor in news paper? if yes, under which banking rule of RBI ?

3. the loan has been recovered by taking the possession of the property, then why gurantor has been harressed?

regds

Reply Follow

3 Replies

M V Gupta (Advocate) 26 December 2012

Mere taking possession of the property does not have effect discharging the loan unless its disposal in auction results in the sle proceeds being sufficient to meet the entire loan amount and expenses i8ncurred byt he bank in auctioning the property. However the letter written by the bank's Manager is unclled for and u may raise ur objection and advise him not to implement his proposal as it will be improper and illegal.

Vipin Kumar Marya (Advocate) 27 December 2012

Dear Arvind,

Mr. Gupta has rightly advised, if still there is dues pending even after calculating the estimated value of property possessed from you, then in tah case insted of writing you about the publication of photo, name and details of you and Guarentor, bank should writ to you to repay the estimated differense amount.

This action of bank is really Un-called for, kindly advise the bank official to not to do this otherwise it will attract the defamation suit..

arvind (Promoter) 27 December 2012

thanks so much sir for the suggestion.

when i hered about this case and i read the notice served by the branch manager, i was surprised that once the property has been taken into the possession by the bank and the dlc value of the property is higher than the loan amount and the market values of the property is been increasing, then what is the authencity of this new notice and why this has been served, since i am not educated in terms of legal aspects, i was not much sure.

thanks again for your suggestion and advice. being inqusitive is my hobby, so i wrote this to the forum. than sir(s) again.

regds

arvind