Banking letter of revival

Querist : Anonymous (Querist) 04 December 2011 This query is : Resolved
i have bank account in canarabank and got two wheeler loan for 39000/-.
to issue the letter of revival they blocked my account and ATM also with out prior notice to me.At that time i was in out of station and faced financial problem.
is this correct way to get the signature on letter of revival.

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jeevan1950 (Expert) 04 December 2011
The Loan and revival letter are independent issues connected with your liability as borrower. The bank cannot block your account as a measure to compell you to sign the said revival letter. you can file a complaint with local police for breach of trust OR you can approach the consumer forum for 'deficiencies in services and claim damages for the financial crisis u faced.

ajay sethi (Expert) 04 December 2011
when you had obtained loan from bank did you sign any agreement wherein bank was enttiled to exercise its lien on your accoun
Banks have a right to exercise lien under section 171 of the Indian Contract Act against the dues from constituents/customers. However, the banks cannot exercise lien over the personal account of a customer on the ground that money was due to the bank in another account where he acts in a different capacity, if there is no agreement to that effectts .

Kiran Kumar (Expert) 04 December 2011
I agree with Mr. Sethi and as a general practice the banks get the signatures on such documents.

prior to taking any action against the bank please work upon the agreement between you and the bank.

J. P. Shah (Expert) 04 December 2011
Please peruse:

Bank problems:
http://www.box.net/shared/12ijyj35xivah5ft3tt8

In your case bank has acted high handedly. You can move consumer forum for compensation for deficiency in service. Bank cannot block your accounts for revival letter. Bank should have given you prior reasonable notice before doing so.