Recovery of agri loan written off amount after death
arunjoseph
(Querist) 03 February 2015
This query is : Resolved
My father had an agri loan (KCC) for 50000 rs from SBI. This was closed in 2008(was written off under central govt scheme). My father passed away in 2012.
Today (FEB 2 2014) i received a call from my village officer informing me that an order to perform Revenue Recovery for this SBI loan has come up.
I contacted the SBI Keralasserry Manager and she informed me that, in an audit conducted in 2012 a decision was made by SBI to recover the written off amount from 2008 . She tells me she had sent a Registered POst in my Father's address which went back owing to his death. SO she couldn't contact anyone and inititated an RR.
Is this legal? Can this be stopped? 6 years after loan closure (write off) they are initiating an RR.
Can someone please provide advise on this
Dr J C Vashista
(Expert) 04 February 2015
Contact the bank manager personally along with government order on the subject matter and get the issue resolved amicably otherwise the bank has a right to recover the loan with interest thereon.
If required (subsequently) contact, consult and engage a local lawyer to take on your case.
Advocate Ravinder
(Expert) 04 February 2015
I Agree with Vashista Sir. Show the Manager the Government Order. Even otherwise the debt is time barred. The Bank should have filed money recovery suit within 3 years from the date of default of payment or declaring NPA. No need to worry. You can win the case by engaging an experienced lawyer.
T. Kalaiselvan, Advocate
(Expert) 04 February 2015
The case appears to be not maintainable for:
1) Written Off in the year 2008 by a government's police, hence the auditor of the bank cannot make an observation or objection tho this effect,
2)The loan is barred by limitation;
3) As the loan was availed by your father whom is no more now, recovery cannot be tenable.
You may consult a lawyer and decide further course of action accordingly.
c.p.s. ramachary
(Expert) 05 February 2015
Dear Mr. Arunjoshep,
Write off of an account is internal norm for banks to maintain clean balance sheet and not for the benefit of defaulting borrower. Write off is for the convenience of bank. Write off of an account does not mean that the account is closed for the benefit of defaulter. After write off, the bank maintains the account in shadow/mirror account and add the ccrued and undebitable interest to the written off amount and claim it within limitation in the forun having jurisdiction. Therefore do not be under wrong impression that the loan account is closed. The bank is right in claiming the same if not time barred.
Biswanath Roy
(Expert) 06 February 2015
Agricultural Loan is under Government Sponsored Scheme and the borrower farmer is personally liable for the liabilities. Secondly, the loan was written off in accordance to Central Government Scheme and related Circular. Hence, audit report and their recommendation if any cannot override the Central Government Scheme and notification related to. Thirdly, subject debt is hit by Law of Limitation.
