In case the borrower defaults in repaying the loan, what are
smit sanjaybhi shah
(Querist) 15 September 2020
This query is : Resolved
In case the borrower defaults in repaying the loan, what are the legal remedies available to the bank (lender)?”what are the legal remedies bank have against Borrower under Criminal law IPC and civil law under CPC?
Rajendra K Goyal
(Expert) 15 September 2020
Full clear facts not given.
If any property of borrower or guarantor is mortgaged, Bank can proceed to auction it at its own level under SARFAESI Act after taking it in possession.
If no property mortgaged, it may take primary security in possession and can auction it.
Bank can file suit for recovery and can sell other assets / property (not mortgaged) of the borrower / guarantor through court.
In case of any fraudulent activity, Bank can file FIR also.
Rajendra K Goyal
(Expert) 15 September 2020
Query repeated at:
https://www.lawyersclubindia.com/experts/in-case-the-borrower-defaults-in-repaying-the-loan-what-are-722251.asp
Dr J C Vashista
(Expert) 16 September 2020
Same query has been repeated by an author named as "Anonymous", why ?
