Legal Question in Banking Law in India

Dear , Sir/Madam ,

My client is Ex director of an co operative bank , and has a loan with the same bank .

The same account went in NPA in 2001 , when my client went for OTS scheme the bank said no as RBI Dos'nt allows directors or Ex directors to get benefits of OTS Scheme.

Kindly help me out with any ways or Advice you can give .

Your help will be most appreciated .

The matter is in Maharashtra State .

Regards ,

Aditya Sarda .


Asked on 5/05/16, 2:11 am

2 Answers from Attorneys
Fca Prashant Chavan Expert Edge LLP

05.05.2016

Dear Aditya,

Other than adjusting the unclaimed / unpaid salary, if any of the Director from the total loan amount outstanding, I do not see any way in which the Director can get any concession(s) in the repayment and settlement of the loan.

Regards,

Read more
Answered on 5/05/16, 2:50 am

1) Is the loan given to ex-Director in his personal capacity or under loans to Directors of Company?

i) as a part of the conditions of service extended by the company to all its employees; or

ii) pursuant to any scheme approved by the members by a special resolution

2) OTS is not applicable to company Directors.

3) If any amounts due to/payable to Directors can be set-off against outstanding NPA.

4) Civil Liability to the Company- director�s liability to the Company may arise where

(1) the directors are guilty of negligence,

(2) the directors committed breach of trust,

(3) there has been misfeasance and

(4) the director has acted ultra vires and the funds of the company have been applied for such an act.

Read more
Answered on 5/05/16, 4:06 am


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