Bank od loan - npa
GAURAV
(Querist) 10 May 2014
This query is : Resolved
I have a commercial property at Noida which is secured against a Overdraft Loan facility of Rs.1.50 cr from a private bank in 2006. The Od facility is renewed every year and during 2008 its limits reduced to 90 Lacs.
But at that time my business suffered a huge loss due to non recovery of fund from clients and i was unable to pay the interest thereafter , i.e, oct 2008 onwards.
However communicate with the banker for a better solution of the matter. But the bank shows no interest to settle the matter.
The present value of the property is around Rs. 3.50 Cr.
The bank declared the OD account as NPA and showing the outstanding Balance 1.90 cr. on Oct, 2010. and issue notice u/s 13(2)of Securitisation and Reconstruction Act.
I have written to the bank for a settlement of the matter but they are not interested to settle the same and demanded the whole amount of Rs. 1.90 cr along with interest from the period of NPA to the payment date.
On August 2013 , when i offered a settlement of Rs. 1.83 cr. , as I got an investor with whom i can start my business a fresh. But the Bank reject the proposal.
How can I save my property in this present situation, as I can have no investor now with me.what will be the legal remedies available to me so that the matter will be settle out at its minimum.
Please guide me .
Advocate M.Bhadra
(Expert) 10 May 2014
Settlement of account is the matter of Bank's own discretion, but you should send a letter by approaching them to give time for repayment and also settlement in response to the Notice unse,13(2) of the SARFESAI Act,which is to be send within 60 days. Subsequently the Bank would send a Notice u/sec.13(4) of the SARFEASI Act to take physical possession and notice for auction,then you can file an application u/sec.17(1) of the said act in DRT within 45 days.
Rajendra K Goyal
(Expert) 10 May 2014
The Bank has enough collateral security in its hand, there seems no reason for the Bank to agree for settlement at less amount than outstanding with interest.
dr g balakrishnan
(Expert) 10 May 2014
Read the terms of contract entered with bank on the matter; without that being properly understood do not commit anything to the bank, as banks too have become as untrustworthy like insurance companies; so contact agreements terms only can save you; Read carefully the terms with good legal assistance that that lawyer should be good in the language of the contract agreement, as every word and context with which is used is vital for arguments in any court of law, just do not get jilted by SARFESAI ACT sections, a fear psychosis created by our great Palaniappan chidambaram to save banks ! i know bankers also do not understand several terms in contracts, as most banks are full of commercial accounting men as also lawyers who are versatile in commercial terms so they work peripherally
that is good for you!
without fully appreciating facts and terms correctly do not travel in legal issues! is my advice to you sir1 as things are not that easy today, but one good thing is all these people doing peripherally things is a great advantage to you. regds,
T. Kalaiselvan, Advocate
(Expert) 11 May 2014
You have been properly advised by Experts Mr.Bhadra and Mr. Goyal on the subject, you may follow the advises rendered or consult your advocate and proceed as per his advise.
GAURAV
(Querist) 12 May 2014
Thanks All of u for your valuable advise.
Is it possible for me to move to DRT directly now for a settlement proceedings.If now I am going to bank with a new OTS proposal.
Satya nand aggarwal
(Expert) 12 May 2014
It is better to move to DRT with the proposal to settle the matter amicably. Drt certainly will ask you to arrange the buyer . In this way you can save your property. But certainly there is no law vide which you can compel the bank to settle the matter for any particular amount.
