to recover shortfall due against borrower by Bank after auction sell under Securitisation Act
Querist :
Anonymous
(Querist) 14 December 2010
This query is : Resolved
A schedule Bank sold house building by public auction which was his security as secured creditor but the auction fetches less than the outstanding due on the loan account of debtor. The short fall is less than Rs one lakh INR , so to recover the above short fall whether Bank should file money suit(Civil Suit) in civil court having jurisdiction or in DRT. Please advise.
Parveen Kr. Aggarwal
(Expert) 15 December 2010
The bank should file a suit for recovery in the civil court.
Section 1(4) of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993:
"(4) The provisions of this Act shall not apply where the amount of
debt due to any bank or financial institution or to a consortium of banks or
financial institutions is less then ten lakh rupees or such other amount, being
not less than one lakh rupees, as the Central Government may, by
notification, specify."
