Securitisation act
atul mehta
(Querist) 21 January 2014
This query is : Resolved
i'm a director in a pvt ltd company had taken a loan from canara bank,baroda,Gujarat,for the company Rs. 2.5 Crore had mortgaged my house and a flat of my daughter as third party guarantor.
I failed in repayment after 3 years of dealing with bank,account become NPA and Bank did all the procedures and sold my house and not back the NPA notice amount in full of 2.5 crore.
Now between recovery and NPA classification it took 8 months time. Now bank is demanding Penal interest/Interest/legal expenses amount to Rs. 70 lacs for 8 months otherwise they will sell daughter,s flat.
Bank got the original demand notice amount in full.
Approached many advocates but no body seems knowledgeable and all have different views but no body was confident.
Can you suggest me a way to save my daughter,s flat i'm ready to pay some amount but not the huge amount bank is asking.
I met the manager of bank but he says he is helpless as the flat is mortgaged with them if flat was not there they would have bargained in amount.
Please help.
Best Regards
DEFENSE ADVOCATE.-firmaction@g
(Expert) 21 January 2014
Create third party lien in form of lease prior to bank agreement and take objection in normal court through that third party.
If handled properly the case will go on and on.
R.VENKATESAN
(Expert) 21 January 2014
Securitsation act is a special act. Your daughter being a guarantor and the mortgagor is jointly and severally liable alongwith the principal borrower. Thus your daughter is a borrower as defined under SARFAESI ACT is answerable to the debt due to the secured creditor viz. Bank. If Net Present value of the property is morethan the liability, then the bank will not accept any OTS proposal. The only rrecourse open to you is that you can find out whether the bank has capitalised the penal interest. If it is done seek recalculation of the amount due and seek waiver of penal interest and seek charging of interest at simple for the ultimate book balance and immediately offer to pay the said amount on or before 31.03.2014 and the bank may accept the same and release ur daughters flat. Still decision lies with the bank only.
Advocate. Arunagiri
(Expert) 21 January 2014
Normally when the loan is fully secured the bankers will not come for a reduction in interest or principal.
It seems that the bank had taken majority of the loan amount by selling your property. Now you can approach the DRT, seek time for settling the loan amount. Untill then get stay from the DRT.
But, you can request the bankers to cut down the penal interest and some portion of the interest.
In my experience some banks had considered the request of the borrower.
You try your level best.
Rajendra K Goyal
(Expert) 21 January 2014
Since your daughter is guarantor in the loan and her property is mortgaged, Bank would agree for some compromise is doubtful.
DEFENSE ADVOCATE.-firmaction@g
(Expert) 21 January 2014
DRT has been created by FINANCE MINISTRY for recovery of bank loans so no stay is granted unless part payment is made.
More ever going to DRT is not cheap and once order is given for part payment even HIGH COURT WILL NOT ENTERTAIN WRIT.
The method suggested by me is SLINGSHOT method
Raj Kumar Makkad
(Expert) 22 January 2014
ell advised by experts hence no more to add except that the DRT has also power to grant stay order.
