Sarfaesi
MD JAMAL MUSTAFA
(Querist) 08 August 2013
This query is : Resolved
KINDLY PROVIDE ME CASE LAW WHETHER THE CC A/C HOLDERS BELONG TO SAME FAMILY TOOK THE LIMIT IN THE NAME OF THREE SEPARATE BUSINESS FIRST AND SECOND FOR BUSINESS BUT THIRD TOOK LOAN FOR HOUSE MAINTENANCE BUT THE BANK CLUBED THE THREE A/Cs INTO ONE A/C. AGAIST THE A/Cs HOLDERS POSSESSION NOTICE ALSO HAS BEEN ISSUED. WHAT COULD BE THE PROPER REMEDY? CAN THE BANK CLUB THE THREE A/Cs INTO ONE A/C? GUIDE ME
THANKS
c.p.s. ramachary
(Expert) 08 August 2013
ACCOUNTS ARE CLASSIFIED BORROWER WISE AND NOT FACILITY WISE.THE BORROWER IS OF SAME FAMILY.
HENCE CLASSIFICATION WOULD BE BORROWER WISE AND NOT FACILITY WISE.SEE RBI GUIDELINES WHICH ARE BASIC PRINCIPLES FOR CLASSIFICATION OF LOAN ASSETS. NO CITATION IS AVAILABLE AND NOR NECESSARY FOR THIS QUERY.
Rajendra K Goyal
(Expert) 08 August 2013
From the query it is not clear the title of each account, whether accounts are individual, partnership(who are the partners), HUF or otherwise. What is meant by members of same family. Are the borrowers in all the loans / limits are same or separate.
If the borrowers in all the accounts are same individually, one account NPA will result all accounts NPA of the borrower.
malipeddi jaggarao
(Expert) 12 August 2013
Agree with Mr.Ramachary. Bank has got right to club all the liabilities standing in the same name irrespective of the purpose.
Raj Kumar Makkad
(Expert) 15 August 2013
If the banker has already got an undertaking or power while issuance of the loan to that effect, a loanee can do nothing so first of ensure whether such agreement exists between you and banker or not.
c.p.s. ramachary
(Expert) 16 August 2013
RBI's Master Circular- Income Recognition, Asset Classification, Provisioning and Other Related Matters - UCBs RBI/2012-13/64 UBD.BPD.(PCB) MC No.3 /09.14.000/2012-13
July 2, 2012 provide as under:-
2.2.2 Treatment of NPAs - Borrower-wise and not Facility-wise
(i) In respect of a borrower having more than one facility with a bank, all the facilities granted by the bank will have to be treated as NPA and not the particular facility or part thereof which has become irregular
