SECURITISATION ACT- INSTANCE OF MISUSE
umapathi.s
(Querist) 18 June 2008
This query is : Resolved
sir,the bank has initiated proceedings under securitisation Act against me for non-payment of loan installment after wrongfully terminating me from service. the loan was sanctioned to me under staff category at concessional rate and repayment was used to be deducted from my salary. After wrongful termination from service, the matter is before the High Court and now is at final stage of hearing. during this process I was out of salary and hence my loan was treted as NPA on account of non-payement of installment linked to salary. despite my request bank is continuing its proceedings for symbolic possession under the ACt. I am unable to pay any amount due to severe financial problems. I am requesting the bank to wait till the disposal of the case before the High Court of Karnataka which can decide about my reinstament and backwages so that incase of favourable order, I can pay out of the backwages towards the overdue.morevoer, I am requesting the bank to adjust the overdue from my PF Balance laying with the bank. since the bank had taken Lien on my PF at the time of relaese of Loan so that I may be relieved of my immediate possession of property.so, i am in fix since the bank is neither waiting till the dispoal of the case before the High Court nor giving me my retirement benefits . they are maintaining that PF is additional SEcurity and the case before the High court is independent action and can't be linked to Securitisaiton Proceedings.What are my alternative ? kindly advise with any decision of the earlier court judgement.can the bank continue its proceddings when the matter of employee and employeer relationship is penidng to be decdided. since the Loan was sanctioned under staff Category and that relationship of staff and the bank is in dispute. please advise.
Kiran Kumar
(Expert) 19 June 2008
firstly approach the Debt Recovery Tribunal and seek for the stay on the proceedings under the Securitisation Act...you have got quite a genuine case.
if you do not find any relief over there then approach High Court.
umapathi.s
(Querist) 19 June 2008
sir,Thanks for your advice. sir,any instance of securitisation proceedings by the Bank against its employee ? please give the details of the case law if any. thanks once again. Regards
Y V Vishweshwar Rao
(Expert) 02 April 2009
There are two securities , one is Property and another is PF/benifits
whether in the service Termination orders any observations are made regardign PF / benifits etc or there are no amount to be paid to you .
In the given situation it is better to approcah the DRT and obtain the Stay orders agisnt the proceedigns of the Bank under Security Act
Hiralal Das
(Expert) 05 April 2009
I do agree with the opinions of the learned members.
