Legal Question in Banking Law in India
A housing loan taken by a borrower turned out as NPA and demand notice was issued and symbolic possesion of the property was also taken under SARFAESI Act. Subsequently the borrower requested for rescheduling of the loan and the same was allowed by the Bank and the account was reclassfied as a performing asset. However the borrower has again committed default and the account is again classfied as NPA. Can the bank now again issue a fresh demand notice under the SARFAESI Act. Should the bank again give 60 days time. While issuing the fresh notice should not the bank mention regarding the earlier demand notice, possesion and rephasement of the loan.
3 Answers from Attorneys
Yes, the Bank in a fresh notice must grant 60 days time to borrower.
The Bank can issue a fresh notice. No need to refer to the earlier notice which for all purposes stand rescinded.
The Bank can certainly entitled to issue a fresh notice & start recovery process afresh. It is neither obligatory not relevant to refer to the earlier notice.
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