Legal Question in Banking Law in India

22.01.2016

Dear Arif,

Any asset (movable and immovable) is covered by the Securitisation and Reconstruction of Financial Assets & Enforcement of Security Interest Act, 2002 (SARFAESI) Act. You should personally meet the Branch Manager and discuss and agree upon your repayment schedule, and immediately thereafter give a letter to the Branch Manager on what has been agreed between you and the Bank and obtain their acknowledgement thereon. You don't file a case and waste your valuable time and money running behind the Court; let the Bank do it. You only defend yourself.

Regards,

Already answered.

1) Representation/Objection: against the demand notice Sec13 (3A).

Communication of reply is mandatory in both the events.

2) After service of the notice if the borrower makes any representation or objection against the demand notice the A.O. should immediately send it to the secured creditor who in turn should send a reply or advise the A.O. to communicate reply to the borrower within �fifteen days� (recent amendment substituted for one week) of receipt of such representation or objection by registered post with AD or Courier. Evidence of communication is to be preserved for evidence.

Representation: seeking for extension of time for payment or OTS.

Objection: Challenging the validity of the demand notice on various grounds.

3) In case the secured assets are movable, the A.O. can take possession of them in the presence of two witnesses and draw a panchanama, as nearly as possible as given in Appendix-I [ See Rule 4(2) of S.I.(E) Rules] (Evidence to be preserved).