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
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.
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.
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
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.