query about ots of urban cooperative bank
sanjay
(Querist) 18 February 2011
This query is : Resolved
we a pvt ltd company had taken 3 loans from surat people cooperative bank surat gujarat. the loans became NPA in 2000. the bank got a decree from board of nominees against us. the bank did not allow the sale of the machinery of the pvt ltd company instead they pressurized for the sale of the house of the guarantor. after the sale of the house there was an ots scheme of rbi in 2006. the company applied for ots in sept 2006 for 35.61 lacs for all 3 loans. the bank did not give any letter of acceptance of ots. the company paid 25% (8.90lacs) in dec 2006. then the company paid 5 lacs in may 2007. the bank GM said that the scheme was extended and we could pay til march 2008. then co paid 21 lacs in march 2008.later the co again paid 3.16 lacs in may 2008 towards interest of ots. during the entire period the bank GM was saying that we were in OTS. after may 2008 the bank GM promised to give NDC and Form 17 for release of charge of the collateral. but the same was not given. then till march 2010 there was no communication from the bank. now we started writing letters to the bank for the NDC and Form 17. now the bank says that we had defaulted in the ots as we did not pay in time and so now we are out of OTS. there is no letter from the bank about acceptance of OTS nor there is any letter about our removal from OTS. we now need guidance and legal assistance on this issue.
malipeddi jaggarao
(Expert) 20 February 2011
Though there is no letter accepting OTS, since you have paid in different periods, is the payment is voluntary or on the basis of some reminders of the Bank? Bank might have sent you reminders for payment under OTS. That is sufficient proof that there is OTS. Whether your application under OTS inSept.2006 is acknowledged by the Bank? What is the correspondence in this regard? There is any correspondence evidencing acceptance of your payment under OTS or reminders to pay the amounts under agreed OTS, bank can not deny the same now. Yes, they can demand interest for default in repayment under OTS. This has tobe intimated in the acceptance letter. Since there is no acceptance letter, you request the Bank to accept the reasonable interest for default in payment of OTS and settle the matter.
