Legal Question in Banking Law in India

sarfaesi

sorry,i made errors so resubmit.i have a cc account above 1 crore for my partnership firm to execute govt. job orders. account default on account of dispute & payments & NSC bonds for EMD pending with govt.initiated legal step for recoveries. account NPA and bank issued sarfaesi in Jan'08. met bank seniors and after establishing my position as not a wilfull defaulter & no diversion of funds other than explicitly sanctioned my account was regularised, however transactions were poor and my a/c was frozen as of 30th oct.no intimation from bank but i have been corresponding keeping bank abrest of my business plans and had again paid the current quarterly interest in Nov.Bank sent letter in Dec. to regularise by 15th which i did.On the 1st week of Feb. when i met the cm of the bank to find out the status of my account, did i learn that my a/c was NPA since Oct 30th & has now been sent to the stress asset management for recoveries.my a/c has been active till 30th Oct as per the bank.Is there a 90 day & 180 day legal time limit before action?Will the sarfaesi issued in Jan'09 still be in force after my a/c was reactivated?If my a/c crosses the 180 day, will the previous sarfaesi notice be in force to initiate possession of property?


Asked on 2/17/09, 3:45 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: sarfaesi

You may need to consult a local lawyer alongwith your documents.

Read more
Answered on 2/17/09, 11:19 pm
J. Radhakrishnan independent Practice

Re: sarfaesi

The notice issued in Janary 2009 is effective. No question of 90 days or 180 days from the account having been declared NPA. Reply to the notice within 60 days setting out all the facts in support of the case and also requesting them to refer the matter in the alternative to the mediation and conciliation centre attached to the High Court (if there is one which you can find out from a lawyer practising in High Court) in whose jurisdiction, the notice is issued by the Bank. If the Bank persists in taking steps under Sec.13(4) of the Act, file an application within 45 days of the receiptof notice under Sec.13(4) like possession notice etc., under Sec.17 to the DRT and contest the same including your appeal to the DRT to refer the matter to LOK ADALAT. Please consult a local lawyer reputed to have experience in the matter (which you can find out by discreet enquiries in the office of the concerned DRT or DRAT having jurisdiction in the matter) and proceed.

Read more
Answered on 2/17/09, 8:37 am


Related Questions & Answers

More Banking Law questions and answers in India