Dear Law Experts,
Please find below are the queries pertaining to SARFAESI ACT, 2002, and make me understand on the followings:
1. What are the defensive mechanisms in Securitization Act?
2. Is there any way-out to stop/postpone/hold the possession u/s 13(4)?
3. Is that been possible to get stay/interim order by make an appeal with DRT before possession?
4. Can anyone pay any partial or part amount (1/4th or 1/3rd) of the total amount outstanding and stop/hold/postpone the action u/s 13(4)?
5. If there’s no reply from banker side for our Representation u/s 13(A), shall we go appeal at DRT? If so, what are all the procedures?
6. To appeal with DRT, is it mandatory to send Representation/Objection letter to the concerned Banker, in prior? And are we needed to wait till the notice period of (usually given) 60 days to complete/serve for appealing at DRT / DRAT?
7. If they go for possession, is that symbolic or critical possession that they must enact first?
8. What is the timeframe for Symbolic as well as Critical possession and how long it will take for them to achieve the auction / sale?
9. If we appealed with DRT, considering the (poor) financial situation, can we get some benefits like interest free installments (3 or more instls) when disbursing the Loan amount? Also, can we get any additional time to settle our loan amount?
10. Can we request the Bank Manager or DRT officials to Re-schedule any (Mortgage) Loan and request them to grant some 'Re-payment Holiday / Moratorium' at this point in time?
11. If we are not succeed at DRT? Then, can we approach DRAT/Consumer Court/High court? If so, what are the procedures/fair practices? And how long one can prolong/drag out/extend these type of cases to get some buffer time benefited?
12. When an account has been declared as NPA? Is that the 90 days period is of Collective or Intermediate terms? While the amount Overdue comes around 1 Lakh, then immediately the account has been classified as ‘NPA’ or is there any time limit / cut-off date to declare so?
13. What can be done if anyone made any reasonable transaction / paid any amount (Principal/Interest) within the period of 90 days although there’re some past due less than equal to 1 Lakh (apprx.)? So, at this scenario, shall the banker do re-classify/declare the account as ‘Standard A/C’ or Not?
Thanks & Regards,
Siva
