Legal Question in Banking Law in India

Hi,
I am looking into a specific file. Suppose a borrower have been classified as NPA, but has not been handed the demand notice yet u/s 13(2) of SARFAESI.
Can the borrower now file a writ application questioning the NPA classification itself?
Can the borrower claim that the restructuring was done at excessive interest rates & unrealistic repayment schedules (though the borrower had accepted both in writing in sanction letters) and hence the NPA? How strong would this ground be?
Or would the above be dismissed with a view of alternate remedy being present in the form of DRT, even though the SARFAESI actions i.e. demand notice has not been served yet?
Look forward to your views and discussion on this interesting topic.

Asked on 12/22/11, 10:39 am

RAJIV GUPTA (Cell: +91 9811284735) [email protected]

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existing remedy needs to be exhausted before the writ jurisdiction is invoked but exceptions are there.

Answered on 12/22/11, 10:55 pm

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