A/c made npa without sanctioning working capital
pradeep
(Querist) 29 May 2012
This query is : Resolved
Madam/Sir
I have very unique problem for which iam requesting you guidance...
"As some of you may be aware that Working capital should also be sanctioned by bank along with Term loan for project when it is requested. It is also aknown fact the unit will be bound to become NPA when working capital is not sanctioned along with Term loan.
My issuie is my account made NPA without even release of working capital. This is even after clearing all dues by payning Rs55lacs.
Iam running pillar to post since last two years, srfaesi notice send on april 2011 kept in abeyance.
its long story if any one you can guide me, kindly get in touch
regards
pradeep
Shonee Kapoor
(Expert) 29 May 2012
Unless we know the complete facts of the case, nothing can be said.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
ajay sethi
(Expert) 29 May 2012
you need to contact local lawyer . show him complete papers of case . if you have cleared all dues of 55 ;lakhs how can your account be NPA
R.K Nanda
(Expert) 29 May 2012
Take the help of local lawyer.
K.K.Ganguly
(Expert) 29 May 2012
Is there any law which specifies that WC also should be advanced alongwith Term Loan? It is not clear how the SARFAESI Proceeding has been kept in abeyance. Has it been kept in abeyance with due process of law or the Bank is just not proceeding any further? Was Demand Notice u/s 13(2) & possession notice u/s 13(4) already issued? Please provide details for giving our views.
RAJU O.F.,
(Expert) 31 May 2012
There is no law to compel a bank to sanction working capital loan when they grant term loan. Sanctioning or not of a loan facility is at the discretion of the bank. While availing term loan you had to ensure the availability of working capital to run the unit. If bank issue Possession Notice u/S13(4)of SARFAESI you have to file appeal before DRT within 45 days from the date of notice.
malipeddi jaggarao
(Expert) 04 June 2012
First of all whether the term loan and working capital were sanctioned together. If so whether you have utilized the term loan for the purpose? Whether the project is complete? What are the reasons for notreleasing the working capital? Normally banks will not make the term loan NPA that too when you cleared the dues before disbursement of working capital. Come with full facts. We can assist you.
