Legal Question in Banking Law in India

Dear sir

Bank has been sold our JCB bachoe loader a 9 months old machine to throw away price of 850000 and we purchased for it 2300000 out of it 800000 margin money and 1500000 of loan from Hdfc now Hdfc bank has told they are filling a arbitrations and concelation act to recover the shortfall so can they attach our only home which is in my father name

How can we handle it after termination of the loan agreement can they appoint sole arbitrator recover the shortfall

Will arbitrator help us regarding throw away price sale

please reply us briefly

Thanks regards


Asked on 3/07/15, 10:49 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

08.03.2015

Dear Sir / Madam,

Although I have already answered this query earlier, I'll answer it again. You or your organization ought to service the loan by paying the EMI's as agreed regularly. If the JCB loader is used by you for Municipal Works or Government projects, you may take a stand that they take 3-4 months to settle payments of contractor's monthly running bills. Take into consideration the loan duration, and if it be for two or three years, if you exclude the 3-4 months for bill payment settlement as above, five months is too short a period for the Bank to seize the asset. And when the Bank seized your JCB loader with the intention of auctioning it and recovering the proceeds, the minimum bid amount of the tender should have been Rs.17 lakhs or more (WDV after 9 months @ 35% Depreciation per annum), You should also submit the present Valuation Certificate of the JCB Loader done by a Government Approved Valuer or a Chartered Accountant to the Bank. Mention all these points in your reply to the Arbitrator.

Regards,

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Answered on 3/07/15, 5:47 pm


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