Section 101 of mcs act applied by bank after rickshaw stolen
Sadanand B. Panchal
(Querist) 27 December 2023
This query is : Resolved
Respected Experts,
In the year 2011, I obtained Autorickshaw through Bank loan of Rs. 1 Lacs by mortgaging Autorickshaw of third person A and I forced to become guarantor in loan secured by person A for his Autorickshaw. In such a way I and the person A obtained Autorickshaw of each other. (This procedure is often adopted by Banks while granting loan). After 4 years, my Autorickshaw was stolen. I registered FIR in the Police Station and informed Bank. In the meanwhile, I paid all insurance amount of Rs. 62,000/- which was transferred to the Bank by Cheque in my name. Bank did not made efforts to trace my Autorickshaw. Thereafter, the Bank obtained Recovery Certificate from the Assistant Registrar of Societies without notice to me. Now I received a Notice from the Recovery Officer of the Bank under Section 156 r/w Sections 101, 91 1nd 98 of the MCS Act stating that the Bank is going to auction my father’s room if I fail to pay the loan amount with interest. I have not mortgaged my father’s room for securing loan. My Symbolic possession of my Autorickshaw is with the Bank till I repay full loan amount.
Kindly inform be as per following:
1) Whether Bank have right to auction my father’s property where I am residing?
2) Whether the insurance paid to Bank can be treated as 50% amount for purpose of filing Revision Application under clause (2A) of Section 154 of the MCS Act (Before the Assistant Registrar of Societies.
3) Whether Application under Section 101 filed by the Bank before the Assistant Registrar of Societies is Applicable to my case where my Autorickshaw is not available for recovery?
4) Kindly suggest me what to do in this matter.
Thanks in advance,
Regards,
Sadanand Panchal
T. Kalaiselvan, Advocate
(Expert) 28 December 2023
1. If it is your father's property, then he only can object and protest this because the bank cannot attach a third party's property to recover the loan from the borrower.
2. You can enquire from the office of the registrar of societies.
3. The bank has followed due process of law, you may challenge it if it is in violation to the prevailing law.
