Dear Sir,
I had taken an overdraft facility from a local bank in East UP in January 2005 on security of LIC Policy. After September 2006 no transaction took place in that account except a payment on 08/10/2007. Business itself has been closed in 2006. I continued to pay premium on LIC. Bank has not categorized this account as NPA. Till date I have received three Notices from bank requesting to renew the account but I never replied. In meantime I approached to bank to settle the account but bank has refused it. On 03/04/2010 bank has directly received a cheque from LIC on mortgaged policy without my knowledge.
Now I wanted to know whether bank has any right to enforce the payment. Is it a time barred debt now? What are the remedies available to me? Can I recover my LIC Policy back? What actions bank can take?
Please suggest me about my queries.
Regards,
Manoj
