Request for decisions for notices regarding npa declaration etc.

K.K.Ganguly (Querist) 22 December 2012 This query is : Resolved
While discussing with a senior Bank Manager while fixing defense for a SARFAESI Application filed by a defaulting borrower, the following points came up:

1) Why is it necessary to send a notice before declaring the loan account NPA since it has not been mentioned anywhere in the Act? and
2) Why is it necessary to send a notice to the defaulting borrower stating that the A.O is going to take possession of the mortgaged property on or after such & such date?

Though both are based on decisions passed by High Court Judges in the interest of Natural Justice and for the second question there is a decision passed by Ld.Justice Ashoke Ganguly in Orissa Division Bench, I do not have the decisions with me.

Would the Ld.Experts kindly favour me with the decisions to satisfy the above two questions?

A detailed discussion will be much appreciated.

Thanks.

Follow Query

Report Abuse