Legal Question in Banking Law in India

sarfaesi act

MORATORIUM PERIOD ?

education loan - repayment 24 months moratorium period

onwards - is silent for the period starting from.

loan started 15/7/2006, loan ended 15/3/2008 - education

over, convocation in MAY 2008.

interest paid upto oct 2008 - bank called for repayment of principal + interest w.e.f.november 2008 - stating moratorium period 24 months over - stopped paying interest also, seeking clarification -

moratorium period starts from MAY 2008 from convocation date and expires on MAY 2010 (24 months from convocation date)

bank issued sarfesai act 2002 notice to repay total dues within 60 days - else mortgaged property

(residence premises) to be auctioned -

is the notice premature ? as issued in MAY 2009 instead of MAY 2010 ?

notice issued, asset termed as NPA.

can the notice be challenged ?

I intend to pay loan amounts w.e.f.MAY 2010 as per moratorium period understood.

remedy please...........


Asked on 6/25/09, 11:22 am

5 Answers from Attorneys
Rohini Kumar Tenneti R.K.1080 LEGAL SERVICES

Re: sarfaesi act

I suggest you to go through the banking rules and also to search the meaning of morotorium.In education loans the banks/NBFCs would effect the date of morotorium period right from the beginning of the date the loan was disbursed.The bank is very much right and you may not have any defence.

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Answered on 6/26/09, 3:49 am
Pranav Desai PD Legal & Associates

Re: sarfaesi act

Suggest you to consult a local lawyer and show him the agreement with the bank to understand the date when moratorum commences. Though, from your query it appears that the bank is justified in its action.

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Answered on 7/02/09, 3:17 am
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: sarfaesi act

In order to find out the effective date of moratorium period we need to refer to the loan agreement.

The bank's interpretation may be right. You may negotiate with the Bank and try to reach an out of court settlement avoiding unnecessary litigation.

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Answered on 6/25/09, 11:53 am
Fahri Toga TOGA//OKSUZ

Re: sarfaesi act

We think that we can help you to solve your affairs forthwith, please send us your documents or write an detailed e-mail in order to notify the circumstance. We checked over the documents thereafter, we will return your added phone number, e-mail or address, as soon as.

Please do not hesitate to contact with any questions.

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Answered on 6/30/09, 5:21 am
J. Radhakrishnan independent Practice

Re: sarfaesi act

moratorium period starts from the date of disbursement of the loan. The Bank is right. If interest is not paid for two consequtive months, the Bank is at liberty to treat the loan as NPA. Negotiate with the Bank and arrive at a settlement. No use in litigation

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Answered on 6/25/09, 11:51 pm


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