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Applicability of sarfaesi act on loan account bought by bank from nbfc

(Querist) 26 October 2013 This query is : Resolved 
My home loan account was with NBFC, which closed the business and was not available for collecting dues.
Suddenly after 2 years a Bank has contacted me to pay the Principle + Int as one shot payment. They have also served me notice under section 13 (2) of surfaesi Act, please guide the remeady avialble to me, as per Banker they have purchased the Portfolio for 50% and are claiming 100%+ int from me, other wise they would take possession of my Housing property. Please guide and help.
Devajyoti Barman (Expert) 26 October 2013
Reply the notice controverting its contents.
If notice u/s 13(4) of the Act is served then challenge this by filing application u/s 17 of the Act.
malipeddi jaggarao (Expert) 27 October 2013
Well advised by Mr.Barman.
First challenge the application as above.
Simultaneously you should write back to the Bank though they are the purchasers of the portfolio of closed NBFC, they can not deviate the original contract that was entered into between you and the NBFC. If you are capable of paying the instalments which you were normally supposed to pay to NBFC, you can tell them that you are ready to pay the instalments. If you are not capable of paying the instalments due to till now at one shot, ask the new bank to reschedule your loan instalments and extend the period of repayment.
The Bank can not charge more interest than that was agreed with your original financier. Moreover, the Bank which acquired the portfolio is supposed to give notice to the customers of NBFC about their right on the assets of the NBFC and should intimate you to repay your loan directly enclosing the proof of transfer of assets.
Serving SARFAESI notice is a mere threat if they wish to fall back on the act for recovery there would be many loopholes which would come in your favour. The best course is to go the new Bank and have a dicussion.
prabhakar singh (Expert) 27 October 2013
Very well advised by experts.

If arrears of instalments for two years can be paid by you just now then offer them pleading that not you but creditor has breached the contract and ask them to continue the forward installments.

Incase you can not pay the arrears just now
you should reply them asking to reschedule the installments extending recovery period
for two more years on the ground that original creditor closed the business and when present bank bought their business did not approach and intimated timely.
Requesting rescheduling this way would in circumstances of the case would not amount to asking for any alteration in original contract and they are bound to do so.

However you can not ask them that since they have bought loan portfolio for just
50% they should not ask you 100%.
ajay sethi (Expert) 27 October 2013
agree with experts you are not liable to repay the principal together with interest at one shot . offer to repay the loan in installments
R.K Nanda (Expert) 27 October 2013
nothing to add more.
Rajendra K Goyal (Expert) 27 October 2013
Well advised by the experts, nothing more to add.
SANJAY (Querist) 27 October 2013
Thanks to all the experts, It was really useful.
prabhakar singh (Expert) 27 October 2013
You are most welcome!
Kolla V. Raman (Expert) 27 October 2013
You reply to Section 13 (2) Notice under SARFAESI Act, 2002. contact free advise GLOBAL LEGAL SERVICES, Cell No.9290673693, Email: globallegalservicesindia@gamil.com
Devajyoti Barman (Expert) 27 October 2013
you are welcome.
Raj Kumar Makkad (Expert) 27 October 2013
You have rightly been advised by experts so no more to add.


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