banking
mathi vadhana
(Querist) 25 October 2010
This query is : Resolved
what are the possible legal remedies under all heads available to the bank for getting back the loan amount from defaulted customers in case of unsecured loan and in case of mortgaged property?
s.subramanian
(Expert) 25 October 2010
File a civil suit. Mortgage is a secured loan for which you have to take recourse to Sarfaesi
Act.
mathi vadhana
(Querist) 25 October 2010
wat are all the cases that u can institute to get back the unsecured loan from customers?
Devajyoti Barman
(Expert) 25 October 2010
For unsecured loan- recovery of money suit or summary suit.
For secured loan- Steps for attachment u/s 13 of the SARFAESI Act, Suit for Foreclosure and sale etc.
Parthasarathi Loganathan
(Expert) 25 October 2010
Let Legal course of action be the last resort for recovery of loan dues from the defaulter. I have effected sizeable recovery of NPA purely on the basis of personal follow-up with the defaulters and understanding their correct position with regard to non-repayment. We can even reschedule their Pay Plan to get the overdues realized. If the author is a banker I can share all my experience of NPA management
s.subramanian
(Expert) 25 October 2010
Yes. I concur with Mr.Loganathan.
R.Ramachandran
(Expert) 25 October 2010
While the approach of Mr. Parthasarathy is quite acceptable only till such time the limitation for instituting the suit for recovery subsists. If in spite of such gentle persuations and discussions with the borrower, the amount does not get recovered or re-scheduling does not materialise, then legal course cannot be avoided. Otherwise, action would be taken against those officers who did not take timely legal action. So the approach should be one of guarded optimism.
Parthasarathi Loganathan
(Expert) 26 October 2010
Even for revival of documents before it gets time-barred bankers require the co-operation of the borrowers which can be achieved only by maintaining best relationship with the defaulters. I have even revived time-barred debts purely on the basis of maintaining best banker-customer relationship protecting the interests of both officers and the bank. Legal course of action hardly delivered the desirable results. OTS/OCS and out-of court settlement procedures are even approved and recognized by the Regulatory authorities and the results are very encouraging. Author to exhaust all the processes related to normal recovery guideliness prescribed by the bank.
mathi vadhana
(Querist) 26 October 2010
Thnx for the answers but Only when all the possible ways are exhausted after conciliation with the customer , the bank is forced to move to legal remedies, and what is the possible way to get back loan amount from customers for agreements covered under arbitration, will money suit override arbitration clause?and what cases can be especially filed under what sec for credit card dues or unsecured loan?
RAVI B SHAH
(Expert) 26 October 2010
Agreed with Mr.Parthasarthi but it is not possible in all the cases.For some cases you can take help of Police for recover the dues with filing a simple application.
Parthasarathi Loganathan
(Expert) 28 October 2010
Recovery cases referred to police department have not yielded the desired results in practice.
pawan sharma
(Expert) 02 November 2010
Agree with Mr. Loganathan.
