Practically such situation does not arise since after notice the lender has powers to attach property and sale it. It is only for few expert debtors with proper legal advice to thwart such action and force the lender to bring legal order for attachement and sale.
Even after filing OA in DRT banks and FIs initiate SARFAESI proceedings by issue of Demand Notice
u/Sec.13(2) especially after the disposal of Transcore case by Hon'ble Supreme Court. There is no specific ruole to mention the date of NPA, in the Demand Notice. But the mortgagor/ borrower can challenge against the classification of account as NPA, if such classification was wrong.
If Bank resort to action u/s 13(2( and subsequently under 13(4) where the defaulted amount is less than 20% or RS.1 LAKH, whether bank is right. If not, what is the forum where this wrong declaration of NPA and taking action under 13(2) and 13(4) can be challenged.
The NPA is declared on account of irregularity in payment. As per RBI guidelines, if irregular dues are paid, the account should no longer be treated as NPA and should be converte into standard account. I am talking about irregular amount of dues due to which the account become NPA. The account in question is PC, Term Loan, OD in current account, interest.
If the default is for more than 90 days the banker can classify that account ( full loan dues) as NPA. If that due amount is more than Rs.1 lakh or more than 20% of principal+interest, bank can also take proceedings under SARFAESI Act.