Legal Question in Banking Law in India

remedy against securitisation process

My friend obtained a C.C loan from S.B.I. in the year 2006

in the tune of Rs. 10 lakh. During years his transacton with

Bank was O.K. In the year 2007 a client of my friend

defaulted Rs. 6 lakh ,His 6 lakh cheque bounced and my

friend prefered a crimnal case as a consequent my friend's

business collapsed, and his a/c become N.P.A. My fiend

apprised the Bank the actual situation and solicited their

help and ask a revival process,Bank instead of knowing

the facts threatning my firend and insisting if my friend

fail to clear the dues they will initiate securitisation process.

Presently my friend's business is collapsed and he is not

in a position to make any payment to the Bank.

How to prevent Bank's taking securitisation process?


Asked on 3/17/09, 11:01 am

3 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: remedy against securitisation process

The Bank may be right in initiating legal process for recovery of its dues. You need to make adequate arrangements to avoid Bank's legal/coercive steps. You may consider selling some of your assets to clear the loans; alternatively, you may consider filing for bankruptcy.

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Answered on 3/17/09, 12:33 pm
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: remedy against securitisation process

consult a banking lawyer.

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Answered on 3/21/09, 8:10 am
J. Radhakrishnan independent Practice

Re: remedy against securitisation process

Make a fervent appeal to the Bank projecting a realistic restructuring plan with the assistance of a local financial consultant. If the Bank does not agree, you have no alterative to facing the securitisation proceedings of the Bank.

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Answered on 3/18/09, 10:47 am


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