Drt
Kvijay12345
(Querist) 17 December 2014
This query is : Resolved
In case of Unsecured Personal Loans a recovery certificate is been issued in which there is no mention of any property owned by the borrower.This same order is challenged by the borrower in DRAT with the waiver application for the fees.However the recovery certificate holder, Asset Reconstruction company has filed a miscellaneous application for the attachment of the flat,and got the order for attachment of flat fromn DRT while the appeal in DRAT is still pending and also sent a legal notice to the chairman of the society in which the borrower owns a flat requesting the society not to allow anybody to deal with the same flat in whatsoever manner.The asset reconstruction company have stuck the order of attachment on the doors of the flat.The flats mentioned are already mortgaged with other banks and the dispute over the home loan agreement is also pending in court. What will happen next? What are the remedies left with the borrower to stop the recovery proceedings?
Nadeem Qureshi
(Expert) 19 December 2014
File an interim application before DRAT for stay the execution proceeding is only the remedy for Borrower.
K.K.Ganguly
(Expert) 19 December 2014
1. The Asset Reconstruction Company and the lending Bank will now litigate on the property and will share the sales proceed between them with the approval of DRT,
2. There is no legal method to stop recovery proceeding legally initiated by the lending Bank,
3. lawyers can only identify deviation of the lending Bank from the Act while initiating legal proceeding,
4. If the proceeding is legally carried out, it can be stopped.
malipeddi jaggarao
(Expert) 20 December 2014
If the outstanding is Rs.10 lakhs and above, though it is unsecured loan, it will be within the jurisdiction of DRT and any known movable/immovable assets can be attached in the recovery process. Even though appeal is filed and pending before DRAT, the attachment process need not be stopped unless a stay is granted by DRAT.
If some other Bank has financed for property by taking mortgage, it has to file I.A.before DRT.
Biswanath Roy
(Expert) 20 December 2014
By a lawyer's letter you inform the Assets Reconstruction company that the flat attached by them is a mortgaged property to such and such Bank against home loan debts and agreement related to being the subject matter in court case no...... in the ......Court your alleged attachment without any process of that court stands ab-initio void and also it stands as interference with due course of justice to that court and you are liable for the legal liabilities thereof.
T. Kalaiselvan, Advocate
(Expert) 24 December 2014
Besides above advises, you may take the help of your own lawyer for all further issues since you have stated to have approached DRT already, so your lawyer will be able to handle the issues based on the prevailing circumstances.
