Legal Question in Banking Law in India
debt recovery
A preliminary decree was passed in
banks favour in 2002 by civil court.
However no application for final
decree was filed within 3 years.
However now the amount due to
the bank exceeds 10 Lakhs. Can
the Bank now file a petition under
Section 31A of the RDB Act for issue
of recovery certificate. Can a decree
under Section 31 A of the Act
include even a preliminary decree
and whether the limitation for filing
a 31 A application can be treated to
12 years even for a preliminary
decree.
5 Answers from Attorneys
Re: debt recovery
The delay may be condoned. The bank may file an execution in DRT.
Re: debt recovery
The bank may approach the DRT for RC. You may file your objections taking all available grounds. The result may not be predicted at this stage. A number of factors may determine the result. The litigation needs to be pursued carefully.
Re: debt recovery
Hello.
The Bank may take appropriate actions by approaching the DRT courts.
You may contact a local lawyer and file your objections in lieu to the same.
Re: debt recovery
the delay may be condone by Drt
Re: debt recovery
Filing an application for passing of final decree in the Civil Court has to be done within 3 years from the date of expiry of the time fixed for payment in the preliminary decree. Code of Civil procedure or the procedure for passing of preliminary or final decree does not apply to proceedings in the DRT for recovery of debt. Even If the Bank has failed to obtain final decree and if the decree amount now exceeds i.e. in 2009 Rs.10 Lakhs it can still file an application under Sec.31A of the RDDBF Act as it is a decree which has not been executed (the date of preliminary decree being 2002, limitation of 12 years for its execution is available). No question of limitation will arise.
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