Legal Question in Banking Law in India

personal loans

why do they give a notice of repossession of assets/security in terms of a peronal loan default?and how and what are the procedures to act on that notice according to the indian law?


Asked on 2/01/09, 2:40 am

3 Answers from Attorneys
Homi Maratha N.N. Maratha & Co.-Advocates

Re: personal loans

Already replied by adv. radhakrishnan.

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Answered on 2/06/09, 4:44 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: personal loans

I agree with the opinion of my esteemed colleague.

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Answered on 2/01/09, 10:04 pm
J. Radhakrishnan independent Practice

Re: personal loans

The notice is required under Sec.13(2) of the Securitisation and Reconstruction of financial assets and enforcement of Security interest Act. The borrower who has mortgaged/hypothecated his asset is called upon to pay up the loan outstanding within 60 days and if he fails to do, the bank takes possession of the secured asset and sells in public auction. If the borrower has objections to the notice he has to send the same within 60 days of the receipt of notice and the Bank is bound to reply within 1 week from the receipt of objections. The borrower has a right to file an application under Sec.17 of the Act to the Debts Recovery Tribunal if he has valid objections to the proceedings of the secured creditor.

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Answered on 2/01/09, 7:41 am


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