common man (ER) 13 November 2009

Misuse of SARFAESI ACT

Hi,
Good Evening.
I need a help very urgently.
My friend is unable to pay his home loan (principle and int) of 33L of which outstanding due is 2.8L (less than 20%) of the outstanding.
Bank is threatening t use SARFAESI act and not hearing anything regarding the reschedule of the loan. He lost his job due to layoff and currently surviving on his savings.
Meanwhile he vaccated the house and let it for lease with which he was planning to pay the EMI and the overdue. But recovery people went to the house and bullied, and harrased the tenants because of which they vaccated. He lost the money that they provided as well.
Inspite of asking many times to reschedule the loan and reduce the EMI bank people never bother. They are only interested in repocessing the house.
Is there any way to stop the repocession or the sale of the property by the bank?

Please advice.

Thanks,
Common man.

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8 Replies

Kiran Kumar (Lawyer) 13 November 2009

dont worry, wait for notice of the bank at this stage...they will send under S.13(2) of the act.

on reciept of notice move to the Debt Recovery Tribunal, there it will be easy for u to bargain with the bank or to reschdule the loan period.

Y V Vishweshwar Rao (Advocate ) 13 November 2009

Teh Possession of the Falt be can be taken after issuing the Notices under the Act

Wait as suggested by Mr. Kiran Kumar and file application beofre the DRT then try for settlement with the Bank !

PJANARDHANA REDDY (ADVOCATE & DIRECTOR) 13 November 2009

BOTH LEARN CONSELS ARE WELL SUGGESTED, KEEP CORRESPONDECE WITH BANK ABOUT UR FINANCIAL STATUS AND YOUR COMFORTABLE LEVELS OF EMI AND ANY MORITORIUM PERIOD IF ALREADY NOT AVAILED BY YOU INCASE OF BUILDERS DELAY ETC.,AND ALSO EXPLAIN YOUR PAST TRACK RECORD WITH THE BANK.

THOSE GROUNDS WILL DEFENITLY HELP YOU IN DRT SETTLEMENT, DO NOT FEEL SHY PUTTING ALL ASPECTS OF FINANCIAL IN BLACK&WHITE.

Niloutpal (Advocate) 14 November 2009

Hello, I want a suggestion in respect of Muslim Law. One of my client ( Muslim widow) filed an application before the revenue authority for recording her name in respect of a plot of land of her father-in-law after his death as one of the surviving legal heirs. Earlier to the death of her father-in-law, her husband died leaving her and a son and a daughter. Now, the brother-in-law has objected to the same by taking recourse to Sec. 53 of the Muslim Law.Please suggest if there is any remedy.

P.K.Haridasan (Advocate) 14 November 2009

Dear Niloutpal

The widow of the predeceased son has no right over the property as per Sunni Law. The brother in law has the absolute right as residuary. I do not feel that your client's claim will be entertained by the authorities.Hope your client is a Sunni Muslim.

J. P. Shah (RTI & CONSUMER ACTIVIST) 14 November 2009

Common Man,

Pl represent your entire problem and harassment to Chairman of the Bank directly by speed post, by visiting its website. RBI has issued many directives against abusive method of recovery and has advised banks to use legal recourse as a last resort. Pl visit website www.rbi.org.in also.

If U receive 60 day notice under SARFAESI, immediately file appeal to Authrised Officer who issues notice and convey him details of your problem and request him not to proceed further. If he does not respond postitively, pl file application with Debt Recovery Tribunal of the state [ which is at State capital] for staying the process.