Symbolic possession notice under 13(4) by bank

This query is : Resolved 
 

(Querist)
07 May 2017

hi experts
my father is 63 years old and is retired. he became guarantors of his cousin in setting a poultry business and mortgaged our residential house to bank as collateral security. Now account has become NPA and 60 days period is over. with in week of this we got a symbolic possession notice pasted on our house as well as on his farm. his farm and machinery are at no.1 point our house is at second point.bank outstanding is around 63 lakhs which can be recovered auctioning the farm only. we want to save our residential house from auction. what should be our move now.and what procedure bank will follow now. how much time will take the bank in whole procedure. is there any chance of getting stay from DRT on auction of our house at compassionate grounds considering his age and good intention. we are ready to pay any balance left over after auctioning the farm.my father met bank officials and they said ok we will give sanction of farm only to auction. should we believe on their words and if they do not keep their words and give sanction of both properties, can we still go to DRT after sanction. pls guide us and tell the stepwise procedure as i have no idea of this field.
thanks


Sudhir Kumar (Expert)
08 May 2017

Your farther is guarantor to the loan and it is in his interest that bank recovers the maximum by sale of property of your cousine or else whole amount will be paid by your father selling his own assets if you want the poultry farm to remain intact.

Sudhir Kumar (Expert)
08 May 2017

how much time will take the bank in whole procedure.

BETTER ASK THE BANK. THIS FORUM IS NOT SPOKESPERSON OF BANK

Sudhir Kumar (Expert)
08 May 2017

is there any chance of getting stay from DRT on auction of our house at compassionate grounds considering his age and good intention.



PRIMA-FACIE NOT VIEW CAN BE FORMED WITHOUT SEEING PAPERS.

BUT SOME EXPRESSIONS YOU USED

"COMPASSIONATE GROUND" what compassion can be expected from Bank in not recovering the loan given.

"AGE" IF THE AGED PERSONS ARE ALLOWED TO EVADE LIABILITY BECAUSE OF AGE THEN BANKS WILL NOT EVEN HAVE THE MONEY TO PAY RENT OF PREMISES AND PAY SALARIES OF THE RETRENCHED STAFF.

"GOOD INTENTION" what is the Good intention in being guarantor of a nephew and not being able to prevail upon him to pay the due and then trying to evade guarantor's liability on account of age.

DEFENSE ADVOCATE.-firmaction@g (Expert)
08 May 2017

There are mountains of bad loans all over country and Govt is bringing new laws every other day still no solution in sight.

So no mercy for repayment at bank level or even at DRT. And bank can auction any property.

Yet there are legal ways to delay the auction for a much longer time and persuade the the main borrower to pay up.

show all the papers for proper step by step guidance.

rajeev sharma (Expert)
08 May 2017

lets take up your question one by one

1.Your father despite the age is able to understand the nature and consequences of his action e is no defense.

2. Your father is guarantor of loan and his liability is co extensive and concurrent with that of borrower.

3.As a prudent borrower you should contact bank and cooperate with them in selling the form at the highest possible price . You may yourself arrange the buyer and present that before bank and should move this proposal in writing along with consent of the buyer. To satisfy the bank the buyer may deposit some amount in the bank under no lien account.Even if the bank do not accept your proposal it will not be able to sell the farm for a lessor price.Undertake to pay balance amount of loan under loan compromise scheme of bank.

5 Since bank has taken symbolic possession of the property it will move an application before DM/CJM for taking possession and DM/CJM at maximum period of 60 days will take over the possession

6 You may move DRT but DRT may make an order of paying the debt amount admitted by you.

You may get rid of any debt by paying that off so discuss with bank and find out an amicable way of repaying debt an able counsel by litigation may get the period of repayment but may never get you absolved you of your liabilities.

Rajendra K Goyal (Expert)
08 May 2017

Agree with the expert DEFENSE ADVOCATE.

Dr J C Vashista (Expert)
10 May 2017

Well advised by experts "defence advocate" as well as Mr. Rajeev Sharma, I fully agree and appreciate their acumen-ship, analytical ability and legal preposition applicable in your case.

Nothing more to add.

rajeev sharma (Expert)
10 May 2017

Thank you very much expert Mr. Vashisth

Priti (Querist)
10 May 2017

Thank you so much Mr rajeev Sharma ji and defence advocate.you advised very well after understanding the problem and thanks vashisth ji for supporting.
I request sudhir kumar ji,you may be an expert of your field but you should not use such a hard language which can increase tension of people who are already in tension.
thanks

rajeev sharma (Expert)
12 May 2017

Priti JI we are here to serve the society to the best of our ability. we donot want to increase tension of any person asking for advise. You are always welcome.

krishna mohan (Expert)
16 May 2017

Well advised by experts. I would like to add .. you can ask the Banker for time to settle the NPA and try to get a good buyer so that bank cost for recovery efforts are avoided. Yes your nephew need to be convinced to shoulder liability to re pay back as much as he can to minimize your liability and tension.



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