Legal Question in Banking Law in India

Respected Sir/Madam,

I am running a hotel in West Bengal. I had taken a term loan for this project which I have not been able to repay as planned.

The hotel is currently in running position and the Property has been declared as NPA (Non Performing Asset).

We and the Bank have filed the case in the court to settle the loan. The bank had once settled the loan verbely at an agreed price but it rejected the propsal later on and is now demanding more money.

The case is going on in the court.

Recently, I have heard that the bank has assigned our case to a private aseest reconstruction firm (ASREC India Limited). The next court date is on 2nd June 2011.

Please advice me what can I do? Can the bank or the ASREC take over my property? Can they auction it? The value of the proprty is more than the loan amount. Please help.


Asked on 5/17/11, 11:09 pm

2 Answers from Attorneys
Sanjay Kalra Sanjay Kalra & Associates

The answer to your queries in a concise manner are here in below for your perusal :-

1)Yes the bank can take over your property .

2) Yes they have right to auction the property to recover the loan amount.

I need answers to few of my questions to guide you to save your property.

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Answered on 5/18/11, 12:13 am
Professor SOMNATH MUKHERJEE MUKHERJEE ASSOCIATES(Cell +91 9874753359/ 9477781578)

i can give you the answer but before i give you that answer i need details discussion with you.Roughly i can say that the bank has not file any case against you till now. but they can start proceedings under securitization act and take your property .so it is better you contact with me immediately in my number 9874753359

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Answered on 5/18/11, 8:32 am


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