Legal Question in Banking Law in India

DRT Limitation Period ???

I would appreciate advise on knowing the limitation as per law, the limitation period of the bank to file cases before the DRT after having issued notice under the SRFAESI Act and having received a peaceful take-over the assets.

BRIEF FACTS AS FOLLOWS: Bank issued notice in March 2007 to pay-up within stipulated period -- No reply was sent. Bank issued notice in September 2007 to hand over assets -- peaceful handover conducted. Bank does valuation -- valuation far in excess of amounts due to bank. Bank claims they tried to auction but did not get expected price. THEN, in April 2009, bank files with DRT to takeover personal assets as they are not getting requisite price. Summons and Show-Cause Notice issued only in June 2009.

Background Fact: There are parties interested in the takeover of the company assets at negleigable price and they are in cahoots with the bank. This is happening in collaboration with some shareholders - who caused obstacles when profitable sale.

Given this background, there are two primary questions:

1: Limitation period of the bank under various acts to file in DRT?

2: How can such a situation be handled before the DRT


Asked on 6/24/09, 5:56 pm

3 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: DRT Limitation Period ???

I fully agree with the said opinion.

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Answered on 6/25/09, 1:09 am
Pranav Desai PD Legal & Associates

Re: DRT Limitation Period ???

1) Within limitation

2) Appoint a suitable banking lawyer and contest the matter based on the documents you have.

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Answered on 7/02/09, 3:04 am
J. Radhakrishnan independent Practice

Re: DRT Limitation Period ???

The Bank having failed to get the proceeds in the SARFAESI proceedings in 2007 to 2008 is well within the period of limitation to file the case before DRT. The defendants viz the borrowers and guarantors should enter appearance before the DRT and put up their case including any proposal for restructuring the company and or its assets. Fight the case in the DRT. No point in questioning about limitation as the proceedings are well within limitation.

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Answered on 6/24/09, 9:42 pm


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