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Bank mortage vs personal property

(Querist) 24 August 2017 This query is : Resolved 
Hi I am a Managing Director of A pvt ltd company Which has taken a loan from a Nationalized bank.Due to Heavy loses in the Industry ,the industry was not able to pay back the loans.The account was declared as NPA by the bank one ago.Industry property and Lot of Other Urban properties were mortgaged for the loan in the bank. Bank eAuction Process is going on. Bank valuation on properties much lower to market value which created recovery gap. Bank filed a case to acquire personal properties of directors. Could you guide me how do I safeguard my personal property.

My personal property which I was referring not mortgaged to the bank but title documents are lying with Home loan department of same bank in other state which they have hold documents due to internal communication about the bank dues.

Could you guide me how do safegaurd my property and get the documents from the bank?
Rajendra K Goyal (Expert) 24 August 2017
It seems the directors have personally guaranteed the loan. If so, the same can be recovered from their personal properties even if the same was not mortgaged.
kavksatyanarayana (Expert) 24 August 2017
I agree with advise of Mr.R.K.Goyal sir.
Ms.Usha Kapoor (Expert) 25 August 2017
Generally, a Director is not personally liable for any debt of the company unless fraud on the part of such Director can be established.ALSO IF HE PERSONALLY GUARANTEED THE LOAN BANK CAN RECOVER ITS DEBTS FROM THE DIRECTOR'S PERSONAL PROPERTIES.
Ms.Usha Kapoor (Expert) 25 August 2017
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DEFENSE ADVOCATE.-firmaction@g (Expert) 25 August 2017
This is a finer point of law. Directors are not personally liable and they can not create personal liability for any loan to the company.

However due to huge NPA in banking industry this aspect is over looked unless you fight it out with an expert advocate.

First of all you can demand copy of the agreements from the forum where cases are filed and they have to supply it.

Though it is lengthy process but you can file a suit before a court having jurisdiction for cancellation of all those agreements. It will take time but all such agreements will be cancelled and even if the property is attached or sold it will have to be returned to the original owner.

If you have holding power and can afford legal expanses the final bonanza will be that the bank will be able to recover only original money advanced and all other dues such as interest and expanses will have to be waived.

We are fighting similar cases and you are welcome to watch the progress.
Rajendra K Goyal (Expert) 25 August 2017
As a matter of practice Banks take personal guarantee of the directors for loan sanctioned to the Pvt. Ltd. Company.

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