Bank recovery

No......... At best bank can serve notice for payment.. if payment is not made, the bank may have to approach co-operative court for a decree. The recovery proceedings will be thereafter...

regards

Mr.Imran, Under no Act, under no circumstances the Bank can force the borrower without a proper Court Order / Decree. NOt even Sarfaesi act. So there is no question of a Bank acting forcefully under the MSC Act. 

Dear Mr.Manoj, Under SARFAESI Act, bank need not go to any court for taking possession of secured property, please note.

Resp Raju Sir,

The Act provides that the Bank has to take symbolic possession OR remedy u/s 17 would be meaningless. And the Banker can take possession only when the property has been sold & it is to be delivered to the auction purchaser. 

In effect a borrower can file an Appeal u/s 17 against any action taken by the Bank in persuance of Sec - 13(4).

So henceforth be sure that the Banker can not take forcible physical possession in violation of a borrower's right u/s 17.

I have helped Borrowers to successfully deny the Banker possession after issueance of Sec - 13(4) Notice since 2007 in more than 5 cases.

Regards,

Bank can not recover loan from borrower by using  unnecessorry force. ( Repeted oral or written demands/ requests thereby  asking to repay the loan amount can not be treated to be FORCE)

But after taking  all  eforts (in mutual understanding/ or in practical mode) to recover dues from borrower the Bank may seek help of Legal provisions  i.e Local Co-OP. statutes, SARFERSI Act and DRT laws

Now due to strong restriction by reserve Bank  and to minimise the NPA it is necessory for Banks to keep all loan accounts regular.

It is also true fact that peoples (Borrower) always try to avoid the repayment of loan in time.......

in such circumstances the Banks has no any other option than to approach before the appropriate forum or to initiate recovery proceeding as per the provisions of Law.