Legal Question in Banking Law in India

Respected Sir ,

our bank has got cleared one cheque amounting to Rs. 1279100.00 by fully overdrafting our cc limit & now issue us notice under section 13(2)of SERAFESI ACT.we have replied to this notice.now tell us the opinion what we have to do.


Asked on 3/20/10, 9:57 am

1 Answer from Attorneys
J. Radhakrishnan independent Practice

If the cheque has been cleared without recourse to your limit, then it is unauthorized. You can contest the same. We do not know what reply you gave to 13(2) Notice. bank is expected to give you a reply within seven days. If not you have a good case to file an application under Sec.17 to DRT against the possession Notice under Sec.13(4) as and when it is served or published. Better consult your lawyer and proceed.

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Answered on 3/21/10, 5:37 am


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