Loan legal matter
Advocate M J
(Querist) 01 September 2012
This query is : Resolved
Good Afternoon respected learned members
Sir, My client had taken a home loan and was paying all the Emi's. He had paid 42 Emi's and due to some clarification in his account he stopped paying the EMI's. He had sent many letter from his end and even sent some legal notice to clarify his account details. but no reply was given from the financial institution.till feb 2012 he had paid his Emi's.
in the month of May 2012 the financial institution had sent him a notice under SAFASI act giving him 60 days to pay the full amount up to date or according to this act the financial institution will auction his property. Becoz of this fear my client paid the amount stated by the financial institution.
Now my query is:
1) Can the bank auction the property becoz the customer had not paid just 3 EMI's?
2) Is there any clause according to law that if these many EMI's not paid the property will be auction?
3)And the financial institution had taken extra 3 Emi's from my client telling to pay or they will auction his property.
Now under cheating can i file a compliant before the Hon;ble court on the particular bank officer, or any other section under IPC is applicable
4) Whn the bank financed the property of my client they had taken some cheques from him. Now after 1 1/2 year the bank had deposited the cheque and bounced it. the account had already been closed by my client of that particular bank which cheque was issued,
On this base the financial institution had sent legal notice under 138 oF negotiable instrument act to my client, but didnt file a case against him.
Now can i file a case of defamation on the financial institution. or any way to sue the financial institution
Thank u
ajay sethi
(Expert) 01 September 2012
do you have serox copy of cheque? was it with covering letter? was it a blank cheque?
if bank has not filed case against you under section 138 Ni wait and watch . dont file defamation case . 'as far as complaints regarding non furnishing of account staement is concerned complain to nank ombdusman .
if account holder fials to pay EMI on time the agreement signed by you with bank contains a clause that bank can in event of default take recovery proceedings . read agreement provisons carefully
prabhakar singh
(Expert) 01 September 2012
No!you can not file any case of defamation since you are still a debtor.
K.K.Ganguly
(Expert) 02 September 2012
1) No case stands out from any side.
2) The account becomes NPA if no amount is paid for 90 days.
3) After an account becomes NPA, Bank initiates SARFAESI Proceedings which starts with issuing Demand Notice u/s13(2) followed by Possession Notice u/s13(4) of the Act if no payment is made within 60 days even after receiving demand Notice.
4) Within 45 days after receiving the Possession notice, you can go to DRT for reliefs & no Court has jurisdiction to hear any complain arising out of SARFAESI Notices as mentioned in Section 34 of the Act.
5) So, if you have already paid the amount, you are left with no option to pray for any relief from any Court.
malipeddi jaggarao
(Expert) 05 September 2012
I also agree with expert Mr.Ganguly. As far as bank's silence in giving reply to the clarifications sought, you can file a complaint with their higher authorities including their chairman & MD (addresses available in website of the financial institution). Also file a complaint with Ombudsman, apart from the action suggested by Mr.Ganguly.
