Loan from bank
Vipson
(Querist) 23 January 2016
This query is : Resolved
The santioned loan amount is Rs. 24.60 lacs under CGMSE scheme.. The category of loan santioned is Unit in North Eastern Region.... Inwhich 17.60 lac as term loan and 8lac as CC. The account had been sanctioned in 2013 and since then the entrepreneur has been paying the dues diligently . The CC had not been start yet.There was shortage of funds to take other place to start the project as the splace taken was not suitable for the project and for same he also asked to lend more money in other ways. He had already restructured the loan recently. But still he not able to start the project. The only primary security was Plant and machinery and other fixtures. The area is rented.
My query would be mostly from the Entrepreneurs point of view..i.e What proceedings could be undertaken against him considering it is case of NPA. More so what could the entrepreneur do to present his case strongly keeping in mind he cannot pay liabilities due....??? Please also light me one time settlement.
Parthasarathi Loganathan
(Expert) 23 January 2016
Please initiate legal action as it is mandatory to invoke claims under CGTSME.
Rajendra K Goyal
(Expert) 23 January 2016
Bank would try to recover its dues by all possible avenues.
However, bank's funds are not in risk to the extent it is covered under CGTSME, and bank would get credit on lodging claim as per procedure.
DR.VEDULA GOPINATH
(Expert) 24 January 2016
The entrepreneur to file a suit for damages in view of failure of disbursing CC undesr promissor estoppel. If cc was disbursed, the project would have been operable and profitable and bankers would have got the full amount.
Since the Bank would have taken Credit Guarantee benefit, they cannot file money suit or secuaritization laws.Without makng full disbursement, the Banker cannot proceed legally against the borrower.
It might be appropriate to mention here that BANKERS LEND AN UMBRELLA WHEN IT IS NOT RAINING AND TAKE IT BANK WHEN RAINS.
Borrower is also having right to approach Banking Ombudsman (of relevant jurisdiction)
Dr Vedula Gopinath Advocate/arbitrator
vgnath@gmail.com
c.p.s. ramachary
(Expert) 25 January 2016
Dear Mr. Vipson,
You have not clearly stated that, occ limit is not released. The bank will first invoke CGSTSME cover and the same would be settled subject to "condition subsequent" that is filing of suit in appropriate forum or initiation of action for recovery of the entire debt due and repayment of the same back to CGC on recovery of the same (i.e.in proportion to recovery made by the bank). CGC cover is made for the entire debt and not in parts.You have no alternative except facing recovery action
