Bank hypothecation & Insurance related
bharat garg
(Querist) 01 April 2018
This query is : Resolved
Dear Sir,
I've a loan from Central Bank of India of 9 lacs under " Mukhyamantri Rojgar Yojna" for R O water purification plant for 7 years. Loan was sanctioned in 2014.
In Oct 18 due to short circuit, my plant caught fire and had an loss of an entire property.
After 6 months the Insurance company has reached on a settlement value of 6.30lcs compensation.
Since, I suffered huge monetary loss it took me almost 3-4 months to reestablish my business and rotation, So I was unable to pay my EMI of the loan. Hence, the account became NPA.
My query is, does the amount from the insurance company to the bank will go into the loan account completely or can the bank cut their over dues and return me the left amount so that I can run the business smoothly?
Bank told me that they are going to adjust the whole amount in loan. I objected to that as loan tenure is not over plus I have set up the business once again, so they can only ask for the overdue amount and not the whole amount.
Since it is a government loan, can they help me in this matter, as I would have to shut down the business without having liquidity that may result in unemployment of 8 people I've hired?
Please, guide me through your expert advice on this matter and my rights to fight this case.
Regards
Bharat
Guest
(Expert) 01 April 2018
Discuss and Submit an humble pleading to Senior Bank Officials. Insurance companies would settle the insurance amount sanctioned only to the Bank and they will not interfere in your Bank matters. Only your humble pleading and Request to the Senior Bank Officials of the Concerned Bank could fetch you a good result.
Guest
(Expert) 01 April 2018
Any Legal objection or Legal claim if you make with the Bank be sure it would damage the relationship with them.
bharat garg
(Querist) 01 April 2018
Dear Rajkumar Sir,
Thank you first of all for your valuable suggestion.
I have already pleaded to them but all in vain. Therefore, I am looking for the rights I've to pursue the matter in my favour.As someone told me that bank cannot hold the amount which is not due to them even if the account is NPA.
Guest
(Expert) 01 April 2018
Bank would have sanctioned the Loan Pledging your Industry as Security which was the source of revenue to you basing on which you would repay the Loan.
Guest
(Expert) 01 April 2018
Every mutual settlement was possible before your bank account going NPA on continuing with payment of your loan amount. Now after the event of NPA chances have become quite bleak for you to arrive at some mutually acceptable settlement with the bank.
