Legal Question in Banking Law in India

In an order passed by High court, the court has ordered as follows

"the petitioner shall approach the bank for a comprmise settlement of dues and the bank shall after considering the age etc of the petitioner give a fresh offer to the petitioner"

Normally when a borrower approaches for compromise, the borrower has to state the amount for which he is ready to settle the account.

However since the high court has used the words "give fresh offer" the borrower is contending that the Bank should inform her regarding the amount for which the Bank will settle the account and is not specifying any amount which he is willing to pay.

Is the bank obliged to inform the borrower regarding the amount for which the bank is ready to settle the account. Is there anything wrong in giving the offer without the borrower requesting for settling the account for a specific amount.


Asked on 2/07/10, 2:51 am

1 Answer from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

The bank in obliged to inform the borrower in terms of high court order. Even otherwise, it is lender's duty to inform the borrower about settlement amount. There is no requirement for a borrower to make request for settlement more particularly in view of RBI instructions as interpreted by the Supreme Court requiring "non discriminatory" policy to be adopted by banks.

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Answered on 2/08/10, 5:53 am


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