Legal Question in Banking Law in India

Bank overdraft
I owned a petrol station in Hyderabad. Since sptember 2008 my business closed as my manager fruadulently squeezed me of all my assests and ran an overdraft of 50 lacs. The bank ahs given me time till 31st March 2009. I still could not make arrangement for repayment. How long before my account gets declared as a NPA and bank starts proceedings. The property mortgaged to the bank is a joint property in mine and my two sisiters names. They are the guarantors. I have not other property and dwellings to live in. What is the bank liable to do in this situation? I will appreciate your response in this matter.

Asked on 5/03/09, 12:41 am

5 Answers from Attorneys

Pranav Desai PD Legal & Associates

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Re: Bank overdraft

Since the property is mortgage in default bank can recover the property from you and sell the same for recovery of its debts.

Answered on 5/05/09, 6:43 am

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Fahri Toga TOGA//OKSUZ

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Re: Bank overdraft

We think that we can help you to solve your affairs forthwith, please send us your documents or write an detailed e-mail in order to notify the circumstance. We checked over the documents thereafter, we will return your added phone number,e-mail or address,as soon as.

Answered on 5/11/09, 3:35 am

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Aniruddha Pawse Aniruddha.P.Pawse Advocates

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Re: Bank overdraft

they may initiate recovery proceedings.

Answered on 5/05/09, 9:10 am

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J. Radhakrishnan independent Practice

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Re: Bank overdraft

you could have applied to the Bank for restructuring the debt by appllying before 31 March 2009 explaining your difficulties and suggesting a viable repayment programme. But that you have failed to do so, any time, the Bank will declare your account as NPA and proceed first against the mortgaged property under the SARFAESI Act. These are usual hazards in borrowing and you have to live with that.

Answered on 5/03/09, 2:42 pm

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