Legal Question in Banking Law in India

SARFEASI ACT13(2). One Housing Finance company issued a notice

1) Not payed emi for 6 months due to POA issue.( POA not elected by me and had corrections)

2) Requested for clarification since 6 months and after HFC fully recalled the loan ,asking to clear full sum

3) Payment made for the dues within 20 days after the notice date and they are not accepting it.

I guess I violated the 90 day rule as per the act and also under section chapter 4 section 31 item J, which says all the ACT rules will not apply , if the outstanding amount due is less then 20% of prinicipal. How can they classify this as NPA under SARFEASI act as this section voided it ,even though 90 day rule applies.

They have the check and no accept it for the dues paid. POA is an issue , they knew and trying to recover the money this way. What options I have ,as they issued a notice in paper to auction. Will they send another notice before sending to DRT/DART. Should I appeal in DRT. How to proceed after 60 day period is ending soon.As they were no regulations regarding this NHB about corrections in poa. What are the options I have to proceed.


Asked on 6/25/10, 5:32 pm

1 Answer from Attorneys
J. Radhakrishnan independent Practice

It is better you file a writ petition before the High Court. or wait till they take action under Sec.13(4) and file application to quash the action of the HFC under Sec.17 of the SARFAESI Act

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Answered on 6/26/10, 4:55 am


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