Sarfaesi Act
Tathagata Chakrabarty
(Querist) 06 December 2009
This query is : Resolved
Sir,
I am a borrower from SBI running (SSI)business for the last 20 & 10 yrs with the same Bank in two units (Proprietorship & Pvt Ltd)in the same trade.Both businesses started turning bad due to economic downturn as my basic Raw Materials are Petroleum Bye-Products & abnormal rise of prices saw my entire working capital wiped off.I wrote to Bank in Aug 07 before my Account was NPA for quick injection of funds for nursing the unit back to health.Although verbally assuring me,the bank fell into deep slumber once it found out that the advance was secured against my house property etc.I wrote a number of letters asking for financial support, but the bank did not respond & now they are threatening me with legal action if the Accounts are not regularized as they have turned NPAs.
My questions are:
1)Can I bring & sustain a complaint of damages against the Bank as in truth they have avoided any assistance in spite of my long track record.
2)As per Rbi guidelines banks have to complete restructuring within 60 days of receiving an application
3)Will i be able to hold back the might of Sarfeasi Act on the basis of complaint u/s 17(1),once the due process of 13(4) etc is over.
4)In the light of the above & the fact that the bank by its inaction has ruined my businesses do i stand a chance of negotiating for an OTS of 25% of the outstanding amount.
I will be obliged to receive any guidance/Assistance from the valued experts.
regards.
T.Chakrabarty
adv. rajeev ( rajoo )
(Expert) 07 December 2009
U cannot make complaint against the bank for avoiding you, it is their discretionary power.
My opinion is go for OTS scheme, they may leave the interest but they will not give any concession in principal amount.
Raj Kumar Makkad
(Expert) 07 December 2009
In the given circumstances, bank has failed to perform its duty to restructure the loan within 60 days of receipt of application and thus has violated the RBI guidelines but despite of that the loanee has not got any civil right against the bank officials and only RBI can seek explanation from such bank officials in this regard. Suit for damages can be filed in the situation wherein a person gets any legal right but to grant a loan or not is solely a discretionary power of the bank and courts cannot intervene in such powers used or not used in either way.
It is better to go to OIS Scheme. Do not lose your mental peace and bravery. Time shall again change and you can get again lost glorious period with the help of your mind.
