Banking law
V.N.K. MENON
(Querist) 01 February 2014
This query is : Resolved
May I solicit opinion of ld. experts in the following situation.
A loan was taken from a Bank in 2001 by a party. EMI used to be paid on monthly basis. Due to some unprecedented reasons of loss of employment, the EMI was not paid since 2002. The Bank also kept quite since 2004 after some initial harassment and there was no activity since then from the part of Bank. The query is, Does recovery proceedings has locus standi in Reovery Tribunal/ Court in 2014, i.e. after about 10 years as it is clearly time-barred? If the Bank sends legal notice, what stand should be taken by the borrower. Unfortunately, borrower is still has no livelihood.
Thanks for valued opinion.
ajay sethi
(Expert) 01 February 2014
raise the plea that claim is barred by limitation . . cross check with your client whether he has signed on blank paper or not . banks generally obtain signature on blank documents and then subseqently fill in details to come within the limitation period
Guest
(Expert) 01 February 2014
Loan by "a party" denotes that the case does not relate to you, neither you seem to be related with the bank, which granted loan.
Can you please intimate in what way you are concerned with the case, as a chairman of some organisation?
Rajendra K Goyal
(Expert) 01 February 2014
Please reply the question raised by the expert PS Dhingra ji.
V.N.K. MENON
(Querist) 01 February 2014
Mr. Dhingra,
The problem is of a close relative of mine who has no livelihood.
Guest
(Expert) 01 February 2014
You seem to be chairman of some organization. If I am not wrong, you are capable of providing a livelihood to your close relative.
However, in connection with the issue, you have not provided with the information what actually is the present problem about the loan dues, what was the loan amount, what type of loan was, i.e., secured by some mortgage or unsecured loan, the purpose for which the loan was taken, what is the outstanding amount of principal for which EMIs were not paid, etc.
In fct your question is of academic type, not representing any problem for the present, as your own statement, "if the Bank sends legal notice," clearly indicates that the present query has been raised just for academic interest.
To be frank, I prefer to provide solution only for the real type of probelms, not on hypothetical and academic issues based on presumptions, as there is no end of subsequent supplementary queries one after the other on academic & hypothetical perceptions.
