Legal Question in Banking Law in India

we have availed a loan of Rs.25 lakh for working capital under CGTMSE scheme. We have not provided any collateral nor any guarantee for the same. Due to unfortunate circumstances we have incurred the loss and now we have to close down the factory. I want to know what are the actions that bank can take against me? Its a proprietary company.

Asked on 8/07/12, 4:25 am

4 Answers from Attorneys

anil kumar legal aid forum

0 users found helpful

0 attorneys agreed

bank may file recovery suit

Answered on 8/07/12, 7:04 am

Mark as helpful

RAJIV GUPTA (Cell: +91 9811284735) [email protected]

0 users found helpful

0 attorneys agreed

suit for recovery and in case cheques given as security, then complaint under NI Act.

Answered on 8/07/12, 9:53 am

Mark as helpful

J. Radhakrishnan independent Practice

0 users found helpful

0 attorneys agreed

If the factory and plant have been mortgaged, the bank can proceed to take possession under the SARFAEASI Act and sell the same and or file a recovery application against DRT and through that Tribunal attach what ever assets owned by the borrower proprietor.

Answered on 8/07/12, 10:28 am

Mark as helpful