Legal Question in Banking Law in India

Securitization of asset by bank

our company was banking with from 1988 and from past two year's there has been dispute on the account statements and practice and sudden stopage of sanctioned limit which resulted in heavy loss to the company and also after verification of statment of account several discrepencies were noticed in bank statements like non credit of FD interest excess debit and non supply of several details. company as borowers has been writing several letters to the bank but so far no solutions has been arrived and bank has not bothered to reply. also in the mean time bank has sent notice for possession of the properties of the gurentors, i am also one of the gurentor of the company and now it appears they want to sale the property. borrowor found out several discrepencies in the accounts and has intimated to the bank and also informed that it will settle the matter if all the discripencies are rectified on value dating basis, how ever this descripencies does not include huge losses suffered by sudden stopage of credit facilities by the bank with out any default by the borrower nor bank informed any thing about stopage of credit facilities. possession notice was issued dated 28.05.2007. i am also a gurentor for the loan taken by the company.


Asked on 8/16/07, 10:06 am

5 Answers from Attorneys
Vijay Chandavale Advocate Vijay Chandavale & Associates

Re: Securitization of asset by bank

you may file a DRT case under RDDB Act challenging the discrepancies . You can also file instead of DRT case before Consumer Court . But your actions should be prompt

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Answered on 9/14/08, 12:47 pm
Pravin Vaidya Independent

Re: Securitization of asset by bank

Under Secu.Act Banks have power to seize & sale the assets charged by the borrower. To prepare the defence I need the following

(i) Debit & Credit summations of accounts of last 3 years

(ii) Details of additional interest charged over contracted rate

(iii) Copy of documents executed by you with the Bank

(iv) Terms of sanction of credit facility by the Bank

(v) Details of the properties (including collaterals) charged to the Bank

(vi) Whether any major variations in Terms of sanction of credit facility allowed by the Bank to the borrower without your consent?

(vii) My contact no. is 09426334688

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Answered on 8/18/07, 1:21 am

Re: Securitization of asset by bank

file an application u/s.17 of SARFAESI Act 2002 with DRT Pointing out the discrpencies.You may also file wrot challenging the notice for possession.

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Answered on 8/16/07, 10:14 pm
G. M. Gupta gmguptaandassociates

Re: Securitization of asset by bank

you can tell the descrepencies to the concerned authorities like DRT etc.

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Answered on 8/17/07, 9:11 am
J. Radhakrishnan independent Practice

Re: Securitization of asset by bank

Two courses are open (1) To file a complaint before the Banking Ombudsman after serving notice on the chaiman of the Bank to answer the discrepancies and to pay damages for violation of lender's liability (2) File an application under

Sec.17 of the SARFAESI Act to the DRT setting out the discrepancies and impugning the possession Notice. It is advisable to consult a local lawyer well versed in banking matters and proceed.

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Answered on 8/16/07, 1:57 pm


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