Can the Creditor demand EMI from borrower when matter(SARFAESI) is pending in DRT?
Querist :
Anonymous
(Querist) 18 May 2011
This query is : Resolved
Summary -:
1.The Non Banking Financial Company(NBFC/HFC) issued a notice under SARFAESI_Clause13(4) with total demand "(LOAN CLOSURE)".
2.Borrower approched DRT under section 17(1) for interim relief.
3.DRT ordered "Stay On Possession" while directing the borrower to deposit "fixed amount" with in 30 days against LOAN CLOSURE.
4.Borrower complied with the Order before 30 days and the matter is pending/SUBJUDICE before DRT.
5.After 5 to 6 months of the Order Compliance Creditor(NBFC/HFC) is demanding EMI/dues using various means (phone/written/goons/recovery agents).
6.Also the NBFC deliberately bounced the "Security CHQs" for the above EMI amount and threatening use Sec 138 NI act.
Question -:
1.Can the Creditor(NBFC/HFC) demand EMI/dues from borrower when matter is pending before DRT ?
2.Can the NBFC deliberately bounce the "Security CHQs" for the above EMI amount without borrower knowledge ?
malipeddi jaggarao
(Expert) 19 May 2011
What are the grounds for DRT's order "Stay on possesion"? In normal course the credit institution can demand EMI from the borrower even a case is pending if the the defendant does not dispute the credit. As far as presenting "Security Cheques" you can ask the Institution not to present these cheques till the legal matter is settled quoting relevant portions from the DRT Order and in case if the cheques are presented in spite your advice, you are not responsible for the consequenes attached to the bouncing of the cheques. These all depend on the subject matter of DRT order.
Guest
(Expert) 19 May 2011
Depends on the language of the stay order.
Querist :
Anonymous
(Querist) 20 May 2011
Following is the Order Given -:
Interim Stay of taking physical possession of the property untill further Orders.
The applicant is directed to deposit sum of "X amounts" on or before "DATE".
Urgent notice to respondent by "DATE".
Question -:
1.Can the Creditor(NBFC/HFC) demand EMI/dues from borrower when matter is pending before DRT ?
