Legal Question in Banking Law in India

Sarfaesi Act and attachment of collateral property
Sir,

My father and his three brothers were equal joint-holders of tea companies which were financed by PNB. About ten years ago, the business started to lose money and the loans started rising. The bank gave additional credit against a collateral of our family house where my father and his brothers stayed with their families. The house was in a different company where the four brothers' families were equal share-holders.
Recently one of of my cousins fraudulently increased his own share to about 80% from the earlier 25%.
Now, he is colluding with the bank (PNB) to get the house sold where we all stay. This is the only place we have to live and we own no other residential property. Now, the bank has given us a notice and a deadline to vacate the house by the middle of November.
What can we do and what recourse do we have? My side of the family is financially insolvent and we cannot afford to fight legal cases.
What can we do to continue living in our house despite the banks' insistence that we either sell the house and repay most of their dues or to hand the property over to them.
The tea companies which borrowed the money from the bank still have more sale value than the banks' dues.
What can we do?

Asked on 10/30/07, 6:19 am

2 Answers from Attorneys

Vijay Chandavale Advocate Vijay Chandavale & Associates

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Re: Sarfaesi Act and attachment of collateral property

the captioned matter appears to be fraud . You can well go and file criminal complaint . However if once possession is taken by Bank under Securatisation Act then only you get cause of action to file suit before DRT . The bank dues can be settled by some viable proposal . if you want to save the property you would be required to settle bank otherwise undue advantage is bound to be taken by your relative or bank

Answered on 11/02/07, 7:18 am

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