Action taken under SARFAESI ACT.
sandeep
(Querist) 07 July 2011
This query is : Resolved
We are a manufacturing company based in rural Maharashtra. We had taken a CC hypo loan of Rs. 8.5 Lakhs against stocks and receivables. The factory land and building were given as collateral.
The account turned NPA on 31-03-2008. We were issued a notice under section 13(2) for Rs. 9,00,580/- on 12-12-2008.
The Bank took symbolic possesion in June 2009. They did not proceed further.
We started paying bank since 30-10-2009 and till date we have paid Rs. 7,50,000/-. They have once again taken possession of our factory land and building on 28-06-2011 and have published the notice in local newspapers that the amount of Rs. 9,00,580/- demanded under notice issued on 12-12-2008 is not paid. They are threatening to proceed with the sale unless we pay the balance outstanding of along with expenses and interest till date (Aprrox Rs. 5,00,000/-). Our Bank account still shows an outstanding of Rs. 1,57,580/-)
What are the remedies available to me ?
Advocate. Arunagiri
(Expert) 07 July 2011
You can approach the Debt Recovery Tribunal, Mumbai.You can get a stay of the bank proceedings.
Advocate Bhartesh goyal
(Expert) 07 July 2011
Yes Debt Recovery Tribunal has only the jurisdiction to grant stay order in the matter so approch to D.R.T.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 07 July 2011
first you must resist forcible possession. DRT comes in picture only after possession is taken and there are illegalities not before that.
recent SC citation comments posted elsewhere., in this matter.
malipeddi jaggarao
(Expert) 07 July 2011
Before approaching DRT for stay, please have a dialogue with Bank people and crystalize your liability. Though the ledger account balance is Rs.157580/- the Bank might have stopped loading the interest in the account as the account was delcared as NPA since 31.3.2008. This uncharged interest is payable by you. Apart from this, the expenses incurred by the Bank under SARFAESI Act will also be loaded in the liability. However, if you wish to settle the matter, they may give some remission in the interest/expenses. You can request the Bank for one time settlement. Even if you start repayment, the Bank has its right to demand total repayment once the account is classified as NPA and also action is initiated under SARFAESI. Your next step depends upon the value of the property mortgaged to the Bank. If possible, I advise you settle the matter amicably with the Bank asking for one time settlement. If Bank does not accede your request and if you feel that exborant charges are loaded in the total liability, then you approach DRT for stay order.
RAJU O.F.,
(Expert) 11 July 2011
Action of bank in publishing the due amount as Rs.9 lakh and odd, after you paid 7.5 lakhs, was illegal. Do not wait any longer; file Securitisation Application under Sec.17(1) of the SARFAESI Act, before jurisdiction D R T. DRT can stay further proceedings. DRT also has all the powers to determine the due amount. Go to an advocate capable and handling such cases in DRT and proceed immediately.
