Legal Question in Banking Law in India
I have received a notice from a Bank under SARFAESI ACT (SEC.13/2). The loan amount was 20 lakh which was taken for business. Since the business has been closed due to heavy losses, I want to still settle the account by making one time payment of the principal amount ie 20 lakh but no interest. My simple plea is since I have lost the capital, the bank should forego atleast the interest part and even then they are getting full principal in one shot ie 20 lakh. Kindly advise how to contest this in DRT if the bank doesn�t agree.
1 Answer from Attorneys
You have to make a fervent appeal to the Bank for a one time settlement of paying the principal. If the value of the mortgaged property as per the bank's valuer is more or equal to the amount with interest, the bank won't agree to forgo the interest. If the matter goes to DRT, request for reference to LOK Adalat is there is one conducted by the High Court of that State and there try to bargain with the Bank.
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