Legal Question in Credit and Debt Law in India

Took an educational loan from a bank and the loan became NPA. Bank refused to cooperate in restructuring and filed case with DRT. DRT has judged the case in the bank's favor. Judgement says that bank has to right to recover the loan amount of 11 lakhs through any secured assets, movable and immovable property. There was no security or guarantee or guarantor to the original loan.

1. What are the things covered under secured assets, movable and immovable property?

2. Will the bank have authorization to search my living premises?

3. What if I am living with parents or relatives? will bank have power to enter their premises?

4. Who will do this on behalf of the bank?

5. Is property of parents under threat of attachment? They were not guarantors to loan in any way.

6. Is property in name of wife under threat? Was not married at time of loan disbursal or case judgement.

7. Is any new property i acquire liable to be appropriated by bank?

8. Will the bank attempt to contact employer and appropriate salary if regular job is taken up? Is the bank entitled to do that? No mention in DRT judgment is made of salary appropriation, only "secured assets, movable and immovable property" is mentioned.

9. Judgment came out 3 months ago. No intimation or action from bank yet. When can action be expected?

10. Would police assistance be taken by the bank?


Asked on 9/03/15, 6:16 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

03.09.2015

Dear Sir / Madam,

If you have availed of the educational loan and you have benefited from it, you should look at ways and means of repaying and settling the outstanding loan amount at the earliest, rather than raise questions of what the Bank can and cannot do to recover the outstanding loan amount from you. Simply stated, the Bank has all the legal right to initiate recovery proceedings against you in the manner the Bank best deems fit to.

Regards,

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Answered on 9/03/15, 7:21 am


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