Legal Question in Banking Law in India

Re: interest waiver

The facts given by you are not sufficient to guide you adequately. We may need to know the total loan amount, date of sanction, the default dates etc.

You should reach the Bank Manager of the branch for appropriate guidance. The settlement will be a question of reaching an amicable agreement with the Bank.

Re: interest waiver

You are request to contact a lawyer with your full details.

Re: interest waiver

You cannot claim interest waiver as of right unless there is any RBI Scheme as per which the Bank's are bound to give a one time settlement which is applicable to your loan. Banks frame their own compromise schemes. However a compromise under the scheme cannot be claimed as of right. The Banks would while considering your compromise take into consideration the value of the security, the time and expense that may be incurred in recovering the amount from you by legal process and then come to a conculsion regarding the amount for which your account can be settled. If the security is worth enough then the Bank may even insist for the full amount due with interest at the contract rate. You have stated that you have not received any notice under Section 13(2) eventhough the Bank had issued the same. If the notice is not served then the Bank's are bound as per the act to issue paper publication. It can happen that the notice send by you might have been returned and the Bank might have issued necessary paper publication as required by the act. You could make enquires in this regard with the bank and make necessary request to the bank to give you a copy of the notice. If you have any objection regarding the amount claimed then you could raise the same now by giving a representation to the bank by registered post. However it may be better for you to get the matter compromised if you are really bound to pay the amount due as per the notice issued, since you wont be now be able to approach DRT against the notice issued by the Bank and you will be entitled to approach DRT only after the Bank takes possession of your property, which may cause difficulties to you.