Raja Lakshmanan (Software Engineer) 24 October 2014

Need help on sarfaesi act 2002 proceedings

My father availed home loan of Eight lakhs on Aug 2010 from Union bank of India .Till now we paid Rs. 2,79,000 still we having an loan Outstanding of Rs.9,02,000 and overdue amount of Rs. 1,65,000 . Our loan account skipped in NPA category on November 2013 .During the month of March 2014 I made a payment of One lakhs to my loan account and give a letter that requesting bank officials to regularize my loan account and stop the legal proceedings to sale my home through SARFAESI Act. Still I didn't received any reply from the bank end. In this meantime bank served SARFAESI act 13(2) possession notice on June 2014 .After the expiry of demand notice bank served 13(2) notice to take possession my asset on 8-10-2014 in this notice they mentioned the date and time of the surrender possession of my asset .Already we explained brief about our current financial situation to bank branch manager But there are not willing to grant time for remitting the overdue amount.

What should i do now ?? kindly reply to my below queries..

(1) Shall i request the bank to reschedule the loan account (ie) increase the loan tenture

(2) Wait for the 13(4) sarfaesi act physical possession notice challenge the same on High Court (or) in DRT

(3) If i challenge the 13(4) physical possession notice on DRT means how much amount i should deposit to get a stay for stop the sale process .

Now,I am not in a position to remit my full overdue amount. But i am ready to remit Rs.50000 and give post-dated cheques for my next six months EMI and They replied me back on 17-10-2014 .But obviously my offer is not favoured by bank and they asked me to remit full dues immediately falling which bank can proceed with Sarfaesi Act without any letup . Please give me your valuable advice . Thanks in advance ! Advocates who are practicing in Debt. Recovery Tribunal Madurai and Madras High court madurai bench means please contact me through personal message

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V M DAHAKE (PROPRIETOR) 25 October 2014

Dear Sir,

1) It is not advisable to pay anything unless bank agrees in writing to your proposal. Kindly make sure that all proposals / offers you make to bank are marked " Without Prejudice" so that their contents can not be used against you in court / DRT. You may work out your cash flows and give proper OTS proposal to the bank, envisaging certain down payment and repayment of rest in installments.

2) You could also consider shifting loan to some other co-op bank who may not mind financing NPA.

3) You will have to challenge 13 (4) notice before DRT. There is no choice; else bank will take forcible possession and sell it. High Court will not entertain it.

3) DRT would typically, depending on merits and general discretion, stipulate payment of 10 to 25% of notice amount to lender before granting any interim injunction. You could request it to be credited to ' No Lien' account as you have submitted OTS proposal.

Please do not hasten with any payment to bank for the present and work out your complete strategy, since issue involves your residential house. Bank officials are also considerate in such cases. If you are in Mumbai feel free to contact.

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