In response to an Exparte RC in favour of the bank the recovery officer of the DRT issued a show cause notice to the CD (former director and guarantor). On appearance the affidavit of assets were filed and the bank kept taking time for verification. After 5 years of the above, the RO has again asked the CD to appear in person, with the threat that he will be sent to civil prison if he does not settle with the bank. The assets of the company and the directors have already been auctioned by other consortium bankers who are denying the small bank its pari-pasu share.
Can the RO arrest the CD after so many years of the show cause notice? Despite regular appearance through lawyer on every date and no negative reports from the bank?
Help will be much appreciated.
