Recovery of bank dues.

Arun Shukla (Querist) 17 January 2012 This query is : Resolved
After declaring the Bank Account as NPA, what whould be the best remedy for a bank to undertake for effective recovery of dues of the Bank, particularly when the underlying security is a agricultural land.

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Nadeem Qureshi (Expert) 17 January 2012
Dear Arun
Bank have many remedy but the best remedy is civil suit for recover Under Order XXXVII CPC and get decree, after getting decree file an execution petition & file an application for attachment of Immovable property, when the court passed an order for possession/attached the immovable property, attached the property & recover money with all the cost.
SARFAESI ACT is also applicable section 31 clause (i0 any security interest created in agriculture land.
in this Clause the security interest is very most important point & it have very wide meaning and interpretation.
feel free to call

Sudhir Kumar, Advocate (Expert) 17 January 2012
Agricultural land can be attached. Agricultural implements (including tractor) can't be.Advise of Mr Querishi is short and concise and selfcontained.

Raj Kumar Makkad (Expert) 18 January 2012
Such land can be got auctioned to recover the arrears of the loan as well to recover the expenses incurred in such process.

Shashikant V. Patil (Expert) 18 January 2012
Yes after attachment of land under security for recovery, the said land will be auctioned. However, experts are right to suggest in all.

J K Agrawal (Expert) 18 January 2012
Dear Sir

The SARFAESI is not applicable in your case.

Civil Suit is not advisable as if you go for a civil suit you may have a decree but still you can not attach creditors ag land.

Further the creditor is if agriculturist or belong to SC or ST he may move an application even after decree under "Agriculturist indebtness Act" of your state and as such your decree of civil court can be defeated easily.

You should apply in "Agricultural Indebtness Act" of your state. This act is different in each state but provisions are almost same.

By this way

You will save Court fee.

You have a dceree in which agricultural land can be attached and sold.

The recovery is as a public debt recovery so the Collecter assists you.

You save yourself from double trial of the same case.

RAJU O.F., (Expert) 18 January 2012
Enforcement of security in agricultural property is exempted from SARFAESI Act proceedings. Hence bank can file suit in civil court or if the dues are more than Rs.10 lakhs file application in DRT, which can sell the property for recovery of dues and also can obtain personal decree against the borrowers.