M Prasannavenkatesh
08 September 2017 at 13:35
I had credit card with SBI from 2015 onwards. my SBI Card limit is 50000/-. I disbursed 25000/- approximately. I paid upto June 2017 - 65000/- after that no payment made. Now my credit card balance is 65000/- . Now I am unemployed to repay the card value. I approach bankers for settlement they say 10000/- waiver. can you guide me this situation.
Rakesh Jain
15 September 2014 at 19:50
Dear Friends,
I got retired form the services of a PSU in October 2013.
This is in connection with my LTC claims for the Block Years 2007-08 and 2009-10 availed from my employer, a Govt. of India Company (Central PSU).
Just about a month before the date of retirement I got a message from my employer that CAG has raised a query that amount of my LTC claim was not calculated correctly as per LTC Rules which resulted in excess payment of Rs.73,028/-. I was asked to either deposit the amount or give an undertaking to deduct the amount from my retirement dues. Keeping in view that no other alternative was available at that time as my retirement date was nearing and not making arrangement for amount it may delay payment of retirement dues I reluctantly gave an undertaking for recovery of the amount for retirement dues making it clear that after looking into the matter I may approach with representation if need be. Accordingly the amount was recovered from my retirement dues.
Thereafter I made a representation for considering refund of amount recovered but the same was not considered.
On my seeking information under RTI it was informed that there were in all 47 employees who were settled LTC claims for the same sector for the Block Years 2005-06 to 2013-14 but only in five cases bills were settled only after 12.02.2013 (after the date it was pointed out by CAG) applying the correct provision as pointed out by CAG.
I feel this as an injustice to me as against 41 other persons and it amounts to partial treatment even after having fully come to know of the mistake on this account.
I also approached the concerned Ministy to look into the matter but there has been no response.
I request for the guidance of my learned friends as to if I have a case and there are there chances of success in case I approach High Court in Delhi by filing Writ Petition. In case there are chances of getting success I may please be guided with the procedure for filing Writ Petition along with Performa for the same.
Regards
Rakesh Jain
Rakesh Jain
08 May 2014 at 12:09
An agreement for letting out of property situated at Pusa Road for 15 years has taken place between the parties at aa agreed monthly rent for Rs.1,69,200/- (to be increased by 15% every three years) and security amount equivalent to six months rent.
Guidance is solicited as to (i) how much amount of stamp duty shall be payable for preparing Lease Deed for registration (2)With which office of the Sub Registrar to be approached for registration of the document (3) In case on presentation of document at the office of the Sub Registrar it is found that stamp duty has been paid less what shall be the remedy for getting the document registered in that case.
Meha Harish
23 April 2014 at 12:19
Bank had whole turnover ECGC cover on Pre shipment Packing Credit and Post shipment FBD advances. Exporter also had ECGC policy covering his buyers for default in export payments. One buyer defaulted for 50% payment. Exporter filed claim with ECGC through the bank under his policy with instructions to pay claim amount to bank since the bills were discounted.
Next week bank classified the accounts as NPA and one week thereafter issued Sarfaesi act 13(2) demand notice and 80 days thereafter issued 13(4) notice for possession of secured flats.
After NPA and Sarfaesi act notices, the exporter regularly kept on paying the interest and principal dues and requested revival of accounts. However, the bank adjusted all payments towards principal and interest was not adjusted.
1. RBI directives state that 'The credit facilities backed by guarantee of the Central Government though overdue may be treated as NPA only when the Government repudiates its guarantee when invoked.'
'Credit protection given by the following entities will be recognised:
Sovereigns, sovereign entities (including BIS, IMF, European Central Bank and European Community as well as those MDBs referred to in paragraph 5.5, ECGC and CGTSI), banks and primary dealers with a lower risk weight than the counterparty;'
Can the bank classify account as NPA till ECGC claims are settled or declined. Our claim was paid in full after one year by ECGC - to the bank.
2. RBI circular states 'In respect of post-shipment credit extended by the banks covering export of goods to countries for which the ECGC’s cover is available, EXIM Bank has introduced a guarantee-cum-refinance programme whereby, in the event of default, EXIM Bank will pay the guaranteed amount to the bank within a period of 30 days from the day the bank invokes the guarantee after the exporter has filed claim with ECGC.
ii. Accordingly, to the extent payment has been received from the EXIM Bank, the advance may not be treated as a nonperforming asset for asset classification and provisioning purposes.
Can the account remain classified as NPA after claims are received from ECGC???
3. After issuing Sarfaesi act 13(2) and 13(4) notice, bank filed claims with ECGC on both - pre and post shipment advances. ECGC paid both the bank's claim at a reckless speed of 10 days.
4. Bank sold the mortgaged flat under Sarfaesi act and adjusted the proceeds to wipe out the outstanding in Cash Credit & Mach Term Loan accounts. It lodged OA with DRT for recovery of outstanding in Packing Credit a/c for which ECGC claim was received and parked in Suspense a/c at branch.
5. Concerning ECGC's cover to banks, there various circulars in public domain which state:
ECGC gives cover to bank's for reducing their NPA's.
Claim shall be paid in case of protracted default by exporter
legal action for recovery after claims are paid
rehabilitation measures can be taken by bank for viable / potentially viable units after claims are paid with permission from ECGC.
ECGC's claim paid NPA accounts cannot be sold to ARC's.
In view of these,
a. was the bank legally correct in classifying the accounts as NPA before filing claims with ECGC.
b. Was the bank legally correct when it issued Sarfaesi act 13(2) & 13(4) notices before filing claims with ECGC.
c. Was the bank legally correct in maintaining the accounts as NPA after ECGC paid the banks claim - even though it had issued Sarfaesi act demand & possession notices.
d. Was the bank legally correct in pursuing recoevry action under sarfaesi act after ECGC paid claims for Pre & post shipment cover to Bank.
e. If ECGC claim paid accounts cannot be sold to ARC's, can the bank take legal action under Sarfaesi act at all.
f. Can the bank recover the ECGC claim paid amounts from Personal guarantors and continuous security given by directors by filing OA at DRT.
Please guide. Thanking all in advance.
Rakesh Jain
24 March 2014 at 07:42
What are the provisions and procedure for refund of court fee when both the parties go for out of court settlement? How much court fee shall be refundable.
Anonymous
22 December 2011 at 13:03
Atlas (A Public Ltd. Co.) had export packing facilities/bill discounting limits from a Consortium of Banks X & Y. The lead Bank X had the facilities secured by guarantees of Atlas’s director Mr. Zak and Atlas’s sister company Beta (A Pvt. Ltd Co.). Bank Y had its facilities secured by a guarantee of Alas’s director Mr. Zak.
Atlas suffered losses and became an NPA. Bank Y filed a claim against Atlas with ECGC and received a payment of its claim of approx Rs.150 Lakhs. Subsequently Atlas reached a settlement with bank Y at approx Rs. 50 Thousand and received a no due certificate for itself and its Director Zak in the year 2004.
Similarly Bank X also filed a claim with ECGC but due to deficiency in its paperwork received no payment from them. Subsequently Atlas also reached a settlement with X and received no due certificate for itself and its guarantors Beta and Zak in the year 2006.
Atlas has subsequently undergone a change of management and promoters and is now not related to Beta and has no common directors.
Company Beta now has been granted export credit facilities from Bank M and needs cover from ECGC to avail the facility. Beta has now learnt that ECGC is unable to provide cover to Beta on the grounds that it is on the specific approval list of ECGC (as a sister concern of Atlas though it is no longer related ) and that it has a common director Zak (though Zak resigned from the board of directors of Atlas in 2008)
Beta has approached ECGC for deletion of its name from the SAL and both the banks X and Y have given their no objection to ECGC for such deletion.
Under the circumstances:
1.Are Beta and Zak entitled to be removed from the SAL?
2.Can ECGC continue to keep Beta and Zak on the SAL and deny cover to Beta for exports in view of the claim it had to pay on behalf of A which it will have to write off?
3.What remedies are available to Beta and Zak if it is denied cover by ECGC?
Anonymous
15 December 2010 at 11:40
Dear Sir,
We have got packing credit limit from Indian Overseas bank and Canara Bank for our garment export business in the year 1992.But due to loss in the business our unit has got sick we were not able to run after year 1999.Therefore the above both banks has been filed suit at DRT in the year 2000,hereafter we have made OTS settelement for the both banks and got a NOC letter from them.But the ECGC is still keeping the guranter names of our firm in their specific approval list.
Now please let us know that what step we should take for remove the guranter's name from the ECGC "SAL"
Brgds/Balu
Anonymous
16 November 2010 at 11:51
We are an SSI EOU. In april'07 the bank classified our accounts as NPA inspite of no overdues position and also never gave any letter as to when and why our accounts were NPA. In July'07 they served 13(2) sarfaesi notice. Sept'07 they served 13(4).On alleged NPA date the total exposure of the bank was about 80 Lakhs.
The main issue was a default of payment of Rs.17 Lakhs by our overseas clint in Dec'06. We had ECGC cover on the buyer under our buyerwise policy and in addition bank had taken ECGC cover on entire Pre and post shipment credit facilities. We had filed clim with ECGC in Dec'06 through the bank and also applied for due date extention as permitted by RBI. In april'07 the defaulting bills were not overdue and ECGC claim was in process at ECGC.
April to Sept'07 we all the time pleaded the bank to wait till ECGC claim is settled
or lternately recover 15% from all our sale proceeds till ECGC claim is settled and allow normal account operations. The bank refused any account operations and flow of working capital was blocked.
In Oct'07 we gave them personal equity shares valued at 10 lakhs with instructions to sell and adjust towards overdues and in Nov'07 we deposited another rs 10 kahs cheque andf again requested normal account operations and withdrawal of action under sarfaesi act.
In Nov'07 the overdues of bank was about 6 lakhs. The shares were never sent for Demat ntentionally to show no recoveries till April'08. In Dec'07 bank filed claim with ECGC under their whole turnover policy proclaiming us defaulters on whom Sarfaesi action is taken and got claim of Rs. 36 Lkahs within 10 days.
In May'08 ECGC paid Rs. 16 lakhs of our claim under buyerwise policy. In June'08 the bank took possession of our residential property and sold it in Sept'08 for Rs.24.50 Lakhs. This way the bank received Rs 82 lakhs in total.
During all this time, the bank refused to discuss debt restructure/ nursing, refused upgrading account to standard so that we could move accounts to another bank, etc etc.
Current account position is: therese is outstanding ledger balance of rs. 30 Lakhs in Packing credit account and the bank has receievd this amount from ECGC but kept in suspenec account which it wants to recover from us and pay to ECGC. They still have our seld occupied residential property as "running security" against which home loan was taken. They filed recovery suit at DRT for this amount +_ uncharged interest of 40 Lakhs. Intersest is charged even after claim amounts are received from ECGC + compounded+ penal interest...
Amounts paid in Oct'07, Nov'07, Feb'08 and Sept'08 after NPA were adjusted towards principal and interest was never adjusted since they could maintain the accounts as NPA and continue to terrorise under sarfaesi act.
As per RBI IRAC norms,
If the debits arising out of devolvement of letters of credit or invoked guarantees are parked in a separate account, the balance outstanding in that account also should be treated as a part of the borrower’s principal operating account for the purpose of application of prudential norms on income recognition, asset classification and provisioning.
This way our accounts should never have been NPA and should not be NPA even today.
After detailed investigation of over 1 year, Banking Ombudsman closed our file in Nov'09 on grounds that the subject needs detailed and elaborate investiogation but however observed that "the bank has reitrated that it has the right to classify the account as NPA as per its internal guidlines and take sarfaesi action". Inspite of agreeing towards all illegal actions of the bank, all other RBI depts refused to intervene on grounds that the bank has filed OA at DRT. OA was filed in Oct'09 even when the matter was being investigated by Banking Ombudsman and he was on the verge of writing an orde against the bank. We have copies of minutes of meeting at various hearings at BO and he has observed deficiency in service on atleast 10 grounds and under lenders liability.
Our manufacturing unit is closed in absence of working capital. To restart, we cannot obtain loan from other bankers since we are NPA, our last 3 years balance sheet shows accumulated losses of 90 lakhs and we have no security to offer.
Towards quick justice, can we file case for criminal action and penalties under Sarfaesi act at CGM court. Please advice.
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