Urgent need advocate to file drt

your mother has signed documents as co applicant . further your mother has agreed for mortgage of property standing in her name . in the event of default Fi is justified in recovering the loan amount with interest .

I want to know if a letter is given for request of one time settlement and has a acknowledgement from the FI before defaulting and being declared NPA, and the letter has not been formally rejected by the FI.

Can a presumption be drawn that it is under active consideration of the bank and the borrower cannot be faulted for non payments of dues during the period?

Dear Amar

As per your query, the FI/Indiabull issued any latter under section 13(2) of Sarfaesi Act and provide to your mother a 60 days time to represented her view or not. if the FI not issued the latter under section 13(2) of the sarfaesi the notice issue u/s 13(4) is illigal.

feel free to contact me on my mob. 9953809956 and also wrote me on nadeemqureshi1@gmail.com

no such presumption can  be drawn that it is under active consideration of bank . merely because one time settlement offer has been received by Fi does not mean that you stop paying install ments .

India bulls is not a Securitization company or Reconstruction company as per SARFAESI Act which acquired NPA from any bank which lent you.  And it does not fit into the definition of "bank" under Section 1 of SARFAESI Act.  Hence it has no locus standi to issue notice under SARFAESI Act.

Indiabulls is not a bank but it is a financial Institution which does come under the sarfaesi act.

India Bulls is a Non-Banking Financial Institution.  It is not a Public Financial Institution.  The government is yet to make a decision with regard to bringing NBFCs under the ambit of SARFAESI Act.

The Department of Financial Services, Ministry of Finance, Government of India notified Indiabulls Housing Finance Limited, as financial institution under Section 2 (1) (m) (iv) vide Notification dated 19.9.2007.

still you can get solution without going to DRT.

According to 45-I (c) of RBI Act,1934 ‘‘financial institution’’ means any non-banking institution which carries on as its business or part of its business any of the following activities, namely:–

(i) the financing, whether by way of making loans or advances or otherwise, of any activity other than its own.  It is evident from this definition that every “financial institution” must necessarily be a non-banking institution.  A financial institution which is not a non-banking institution is not a financial institution. According to same RBI Act, 1934, Section 45-I (e), ‘‘non-banking institution’’ means a company, corporation 3[or cooperative society].  Hence a “financial institution” which must be a “non-banking institution” according to 45-I(c) must also be a company, corporation or cooperative society.  According to 45-I (f) of RBI Act, ‘‘non-banking financial company’’ means–

(i) a financial institution which is a company;

(ii) a non-banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner;

(iii) such other non-banking institution or class of such institutions, as the Bank may, with the previous approval of the Central Government and by notification in the Official Gazette, specify;]

Now the question is whether India Bulls Housing Finance Ltd falls under (i) or (ii) or (iii) of the above according to 45-I(f) of RBI Act.  It surely does not fall under (iii) because it is a company.  When we say it is a company it is needless to say it is a Financial Institution too because it makes loans and advances.  But all financial institutions must be necessarily non-banking institutions according to 45-I(c), because 45-I(c) does not talk of any financial institution which is not a non-banking institution.  Hence the financial institution which is a company under 45-I(f)(i) must also satisfy the condition of being a non-banking institution.  But according to 45-I(f) (ii) a NBFC becomes a non-banking institution only if it has as its “principal business” the receiving of deposits, under any scheme or arrangement or in any other manner, or lending in any manner.

However, under under section 29A of the National Housing Bank Act, 1987, India Bulls Housing Finance Ltd is not an institution valid for acceptance of Deposits.  In this weblink you can find List of Housing Finance Companies granted Certificate of Registration (COR)
NOT VALID FOR ACCEPTANCE OF PUBLIC DEPOSITS
under section 29A of the National Housing Bank Act, 1987.

As India Bulls Housing Finance Ltd cannot accept deposits under Section 29A of the National Housing Bank Act, 1987, it does not fit into the definition of non-banking institution under Section 45-I(f)(ii).  If it can’t be a non-banking institution it can’t be a financial institution under Section 45-I(c) of RBI Act.  Hence it is not a Financial Institution.

Hence the Central Government has no right to notify it as Financial Institution under Section 2(1)(m)(iv) of the SARFAESI Act, 2002.