Bank's rights
Raj Kumar Makkad
(Querist) 23 November 2011
This query is : Resolved
My client took a loan from a bank for establishment of his industrial unit. The requirement was of Rs. 27 lakh as per report but bank disbursed only 13 lakh resulting the unit could not start working at all. My client requested banker to initiate scheme for rehabilitation but all in vain. My client requested to settle the accounts as some other unit was ready to take over the unit of my client but neither bank released mortgaged properties of crores nor replied anything.
Matter went on prolonging due to lapse of communication on the part of banker. Now bank has demanded an amount of Rs. 162 lakh (One hundred sixty two lakh) as outstanding so that it may release all mortgaged properties. Loan was taken in 1983 and response has been given in 2011.
My client has no such huge amount and bank is adamant not to accept offer of compromise of principal amount and normal rate of interest @12% from the day of NPA. What is the suggestion of my learned expert brothers?
Amit Minocha
(Expert) 24 November 2011
Dear Makkad Ji,
in my opinion your client should have initiated the legal recourse long back when the bank didnot reply as now around 18 yrs have passed and there may be least remedies available to him now. However, it is not clear whether your client repaid Rs. 13 lac or not when he didnot get rest of the money since it could not start work ?
When the situation to sell of was there at that stage out of the token money bank could have been repaid directly by new buyer and mortgaged would have been removed.
You may Issue notice of damages based upon response recd after 13 yrs and then take the bank into Court for huge damages / compensation , finally leading the matter towards amicable settlement.
Raj Kumar Makkad
(Querist) 24 November 2011
My client didn't repay the amount of loan because some machinary was purchased out of that money. Now case has been filed and the same is now posted for evidence but bank is not coming for settlement despite of various requests. Lets see what happens.
Thanks Minocha ji for sparing time for my query.
Arun Kumar Bhagat
(Expert) 25 December 2011
I am also of the the same view as of Mr.Minocha.
