Set hold account by bank
kishorbhaihora
(Querist) 05 June 2014
This query is : Resolved
bank have set hold my saving account for repayment of my agricultural loan account for which the bank have given me No Due certificate. what can i do.
Kumar Doab
(Expert) 05 June 2014
Submit a written complaint under proper acknowledgment addressed to BM with a copy of NOC issued by bank and demand to beg apology in writing and vacate the lien at once in writing on the spot by letter under original seal and signature by hand.
Even if the BM claims that central office has exercised the lien obtain acknowledgment of your complaint, and if BM declines submit by redg. post and mention that on dated……………………….you had visited the BM in person and BM declined to receive your complaint under acknowledgment.
Keep some witness preferably with you and preferably record the meeting (audio/visual).
If the BM does not comply escalate to Chairman of the bank and demand to beg apology in writing and vacate the lien at once in writing on the spot by letter thru redg. post,so as to reach you in say next 7 days.
If the Chairman also does not provide any reply or relief you may approach BO/DCDRF thru your lawyer.
If the bank claims that NOC was issued by error and some amounts are still to be paid by you then the Bank should have supplied the notice(s) to you by effective mode of communication e.g. redg. post well in time. Usually if the bank issues notice(s) then it is seen that the notice reaches after the lien has already been marked.
The bank is duty bound to substantiate its claim by supplying the authenticated copies of relevant documents.
Your lawyer may opine that Bank is deficient in its service and you can lodge complaint in a forum like BO, DCDRF.
Rajendra K Goyal
(Expert) 05 June 2014
When and how the no dues certificate was given for agri. loan. Whether language says that it is no dues or not overdue. Meet the Manager and ask him about the hold on account. If your loan account is overdue Bank has right of set off on the account.
Kumar Doab
(Expert) 05 June 2014
Author : kishorbhaihora
Similar Query by author: narenbhai h.hora is at:
http://www.lawyersclubindia.com/experts/Bank-can-set-hold-account-476241.asp#.U5BJQHLWIqE
v. Lien
Banks have a right to exercise lien under section 171 of the Indian Contract Act against the dues from constituents/customers. However, the banks cannot exercise lien over the personal account of a customer on the ground that money was due to the bank in another account where he acts in a different capacity, if there is no agreement to that effect.
xi. Limitation
A bank may exercise lien under section 171 of Contract Act even where the debt is barred by limitation.
A consumer can initiate proceeding against a banker for non-release of securities even after the expiry of the period of limitation. This is based on the principle that the banker holds any goods as security from a customer as trustee and the security is not intended to be transferred to him, nor can he acquire any title to it, except on the basis of legal proceedings.
http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=171
