Legal Question in Banking Law in India

sarfaesi act......

applicant + co-applicant applied for higher education loan of rs.30 lacs.

- subsequently after 20 months, dispute between applicant and co-applicant. - applicant asks co-operative bank to bifercate liability of both the applicant and the co-applicant.- bank is silent- issues notice under sarfaesi act to pay within 60 days or else.....without issuing liability figures of both the individuals, can the bank move ahead with its plans,,,,kindly assist


Asked on 6/20/09, 11:34 am

4 Answers from Attorneys
RAMAN KUMAR BHARDWAJ R.K. BHARDWAJ & ASSOCIATES

Re: sarfaesi act......

yes, the bank, the agreement you have signed must have a clause, that both of you are "jointly and severally" liable to repay the loan amount. one can fix his liability to 50 percent only.

so it is advisable that you should pay the loan amount other wise bank will take possession of the property you have mortgaged with bank and they can even make sale of the same

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Answered on 6/20/09, 11:43 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: sarfaesi act......

Yes; both may be liable jointly and severally. the bank may take action against any or both of them simultaneously for the entire amount.

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Answered on 6/20/09, 4:08 pm
J. Radhakrishnan independent Practice

Re: sarfaesi act......

each of the applicant and co applicant is liable for the whole loan of Rs.30 lacs. It will not be possible to bifurcate the outstandings now and hold liable each of them for only half of the loan. Negotiate with the co applicant and try to discharge the whole loan with his co-operation. Else the applicant can be forced to pay up the whole loan.

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Answered on 6/20/09, 11:28 pm
Pranav Desai PD Legal & Associates

Re: sarfaesi act......

Yes, bank can take action. However, prior to taking action it wull satisfy your query with a response.

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Answered on 6/22/09, 5:58 am


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