Legal Question in Banking Law in India

on a house building loan a nationalised due to non payment the bank charges penal interest,declares the account non performing asset,issue notice under sarfaesi act. does the bank need to appraise the lonee about the steps taken by them at different times or they can directly issue notice under sarfaesi act without any prior recall notice,demand notice


Asked on 9/08/09, 2:17 pm

3 Answers from Attorneys
J. Radhakrishnan independent Practice

The answer is Yes. only default is the criterion. The notice under Sec.13(2) of the SARFAEASI Act is sufficient.

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Answered on 9/08/09, 2:51 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

The loanee is NOT REQUIRED to be put to notice. The bank is entitled to pursue its remedies in accordance with law. However, the loanee may resent declaration of NPA if he did not default in repayment of loan instalments.

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Answered on 9/09/09, 8:22 am
Pawan Jangid

Only notice u/s 13(2) of SARFAESI Act will serve the bank's purpose, for which the account must be NPA.

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Answered on 9/09/09, 10:13 am


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