Validity of Documents Towards Loan & Advances.
TRIBHUVAN PUROHIT
(Querist) 05 August 2011
This query is : Resolved
Respected Sirs, With reference to above subject, Please let me know the "validity of document of loan and advance" (in depth) in the court of law. As we use to see generally bank professionals just give us forms containing various pre-printed terms and condition and they just use to take our signatures and fill it up by themselves and do the needful and due to this peoples always get confused. Kindly reply in depth as required. Thanks well in advance. Tribhuvan Purohit
prabhakar singh
(Expert) 05 August 2011
BANK LOAN DOCUMENTS ARE ALWAYS IN STANDARD FORM,WHEN ONCE SIGNED ARE BINDING ON PARTIES
BUT PARTIES SIGNING THEM HAVE RIGHT TO ASK FOR COPIES THEREOF AS IT IS EXPECTED THAT PARTIES HAVE READ AND UNDERSTOOD THEM BEFORE PUTTING SIGNATURE.
ALTHOUGH PRACTICE IS THERE AS YOU STATE BUT THAT IS NOT A LEGAL WAY TO WHICH BORROWERS DO NOT OPPOSE PERHAPS UNDER FEAR THAT THEIR LOAN MAY BE REFUSED IF THEY PUT SO MANY QUESTIONS TO BANK MANAGER.
Ajay Bansal
(Expert) 05 August 2011
See A.I.R Manuals in depth.
Surendra Gupta
(Expert) 06 August 2011
The bank's printed documents, even if signed in blank initially and later filled up by the bank's officials are binding on the borrower and it is extremely difficult to prove later on that the borrower had signed the same in blank. However it is advisable to obtain copies of the same from the bank within a few days of the signing thereof either by verbal/written request or through RTI. The bank is bound to supply copies as per RBI guidelines
RAJU O.F.,
(Expert) 08 August 2011
In the hurry to get the loan released, everybody would sign whatever blank documents, asked by the banker. They take signature in a bundle of blank forms, even in the acknowledgment of debts, which will be utilised just before 3 years from the original loan, for extending the limitation, for further 3 years. I have seen such documents produced before the court, wherein the signatory partner of the acknowledgment of debt, deceased 2 years prior to the date of AOD. If you want to strongly contest the date of execution of a particular document, then forensic verification by expert may help you. Immediately after releasing the loan amount, you ask for the xerox copies of all documents executed by you. Even though RBI had directed all the banks to give copies of all the documents to the borrower, 99% banks will not abide this direction.
