Jurisdiction to decide interest of loan
Vinesh K Chhaya
(Querist) 23 December 2011
This query is : Resolved
My client has borrow Housing loan of Rs. 3.25 Lacks from multi state scheduled bank at the rate of interest 14% reducing in year 2000 His account converted into NPA in 2007 now bank demands Rs. 14 lakhs so the dispute arose and he went to DRT against the SARFAESI section 13(4) and get interim status quo.... he deposited pricipal loan amount Rs. 4 lakhs according to order fo DRT...Bank still demands Rs. 10 lakh with interest....Then DRT said it as no power to decide interest under section 34(CPC) so which jurisdiction My client has to apply to count proper Interest?
V R SHROFF
(Expert) 23 December 2011
Nationalised Bank have no option but to go to DRT, in city, for Recovery.
Now let Bank find out any other Jurisdiction to recover interest. Your client should relax . Let Bank Proceed.
ajay sethi
(Expert) 23 December 2011
you have stated bank is demanding 10 lakhs as interest against principal amout of rs 3 .25 lakhs .
first request bank to furnish detailed statement of account . as borrower you are entitled to said statement of accounts .
since you have got an order for maintenace of staus quo let the bank do the running around .
after you have received complete statement of account try to arrive at an out of court settlement with the bank under OTS scheme
Vinesh K Chhaya
(Querist) 23 December 2011
Dear Friends I want to Know about the policy of counting rate of interest for multistate scheduled bank
Nadeem Qureshi
(Expert) 23 December 2011
send a letter to RBI or file an RTI application in rbi & get proper answer from rbi
Sankaranarayanan
(Expert) 24 December 2011
yes for your query you follow mr nadeem's advise
Jai Karan Nagwan
(Expert) 24 December 2011
Rule of damdupat though is the relic of ancient india that principal amounts and interest threon together shall not exceed double the principal is one of the rule. However under the contract act section 73 & 74 will be awarded compensation to make good loss of the bank by the civil court not by the DRT.
prabhakar singh
(Expert) 24 December 2011
While Mr.Jai Karan Nagwan is right in his expression interest is largely governed by the clause in agreement it self.
