Banking
Susmita
(Querist) 21 March 2015
This query is : Resolved
Sir, Kindly Answer the following matter as soon as possible.
A bank having its branch at Delhi executed loan to Mr. A at Delhi. The head office of the said Bank at Kolkata executed an Assignment Agreement in favour of recovery company at Mumbai with a term that, the said recovery company shall have right to sue on Mr. A at Delhi. Is the Agreement valid? If yes Why?
Devajyoti Barman
(Expert) 21 March 2015
Give background details and inform how are you related to this query?
Susmita
(Querist) 21 March 2015
Myself too an advocate sir. I just unable to find answer.
Devajyoti Barman
(Expert) 22 March 2015
The place of suing is both at Delhi and Mumbai. So limiting the jurisdiction at Delhi is very much valid.
Rajendra K Goyal
(Expert) 22 March 2015
All the terms of assignment need to be referred, however, the assigned company can file suit at Delhi.
ajay sethi
(Expert) 22 March 2015
you have to file suit in delhi as per terms of the contract
Dr J C Vashista
(Expert) 23 March 2015
What does the agreement endorse qua jurisdiction of court?
Whatsoever, Delhi courts be preferred.
Susmita
(Querist) 23 March 2015
Thank you experts. You helped lot.
malipeddi jaggarao
(Expert) 23 March 2015
Agreement is valid. Since the loan is given in Delhi and assignment authorises the assignee to suit the loanee at Delhi.
Guest
(Expert) 23 March 2015
In the absence of discussion of real problem, yours is just an academic query, as if posted by a law student.
Can you please elaborate the nature & the background of the case? Also, please be clear, for which specific purpose you want to know about the validity of the agreement?
If you are really an advocate, you must also know that legal implication of any document can be different on case to case basis depending upon the nature, characteristics, and the circumstances of any case.
Susmita
(Querist) 23 March 2015
The matter is bank filed O.A against my client in the year 2013. The bank without issued demand notice 13(2) on d same day considering account as npa n wanted to take symbolic possession which was stayed. Meanwhile bank transferred right title interest in favour of recovery company n now the new company filed O.A against my client.
Guest
(Expert) 23 March 2015
Any firm opinion depends upon examination of the contents of the mortgage deed and the bank's agreement with the recovery company.
However, from the given brief, it can be said that your client can't win the case merely on the point of validity of the agreement unless you make your home work appropriately. Bank cannot be restrained from making recovery of its dues by any legal means by its own staff or by hiring services of some speicalised agency.
Better check the provisions of the mortgage deed vis-a-vis the agreement with the recovery company, if you can find any flaw against the act of the bank.
Susmita
(Querist) 24 March 2015
Sir, kindly suggest. On perusal of documents I found that, bank has never followed the guidelines of RBI for consideration of NPA, means the account neither out of order neither completed 90 days to declare an account as NPA n even after NPA d bank has received Installment without regularising d account n issued demand notice on d same date declaring NPA on. Same day. Is this ground b taken for pleading. N mortgaged Property is out of jurisdiction to recover.
Guest
(Expert) 24 March 2015
Without discussing the real problem, you are just trying to raise vague queries of academic nature. By the way, what is the relevance of NPA or non-NPA status to your real problem and what actually you want to achieve by proving that the bank did not follow the guidelines of RBI and whether your client can get waived of the recovery of loan dues against him?
T. Kalaiselvan, Advocate
(Expert) 24 March 2015
As observed by experts, it is pertinent to go through the contents of agreement and study the prevailing situation to give further opinion to your further queries.
Guest
(Expert) 24 March 2015
You can't achieve any positive result by adopting hit & trial methods.
Susmita
(Querist) 25 March 2015
Respected Experts,
Overwhelmed by your suggestions. Sir. the real problem is I want to save my client as per our profession. The Real matter of fact is, There are four defendants. Deft. no. 1 is a Company. Deft no. 2 to 4 are guarantors and Directors of Deft no. 1. Deft .2 mortgaged his personal property of Hariyana. They have taken a loan of Rs.2 lakhs on overdraft facility scheme in the year 2006, which was enhanced in the year 2007 for 2.75 lakh. Defts had to make repayment of rs. 33,000/-(installment). Deft no.1 made repayments till March 2011 but less than 33,000/-. Which the Bank has taken as default and declared deft no. 1's account as NPA and send a notice u/s 13(2) serfeasi upon my client on the same date. my client filed appel against it and DRT directed 10 lakhs to deposit, which was pending now. The bank on Feb 2013 filed O.A before DRT to recovery of debt and later bank substituted itself with an reconstruction company delivering right, title and interest over to it. Now the said company initiated proceeding against the defts.
On kind advise of Mr. Dhingra, I On perusal of Records:-
1. I found that, the bank delcared the account NPA prior to 90 days while the account is in operation.
2. in mortgage deed, i found a clause that, "guarantee shall remain in force n continue to be enforce for a further period of 24 months from d dated of preceding the day of its becoming enforceable....."
3. There is no such condition even, that defts are jointly n severally liable.
4. Deft. no. one signed acknowledgement in the year 2011h :March only. No acknowledgement by deft. no. 2 and others.
Now the point of law i want to know sir...
1. When an agreement made between Creditor and Surity binding himself for 24 months only, whether of creditor is liable for recovery of mortgaged pty. whether Limitation will work against deft no. 2 in this case?
2. Without causing recovery from deft no.1 , whether applicant act upon deft no. 2 for mortgaed pty.
3. Whether without considering guidelines of RBI, NPA of account is correct?
Is there any chance of mine to win on this points..
kindly suggest.
Guest
(Expert) 25 March 2015
You seem to be still a miser in describing the problem. Any relation between the debt of 2 or 2.75 lakhs, DRT direction for deposit of 10 lakhs, and the installment of Rs.33,000/-? Also, what about the continuity of repayment of balance installment with how much dues as balance of debt/ interest?
