Availing loan with our noc from the existing bank by pvt ltd co
V MUTHALAGU
(Querist) 02 April 2012
This query is : Resolved
A Pvt Ltd Co which already got various limits against primary and collateral securities with due creation of charges with ROC, has again taken CC against warehouse receipt of NBHC, without NOC from the existing bank and without even informing them and ready to provide further assistance in the form of mortgage loan. The company has not disclosed the said loans any were in the CMA and FFR submitted for renewal and review of limits to the primary bank. Is it correct and also what is consequence if it is wrong.
A V Vishal
(Expert) 02 April 2012
It is the duty of the banker to check all those details in case of default may result in financial loss to the bank. If there is wilful supression of information with view of defrauding then bank can initiate criminal proceedings against the company and the directors.
ajay sethi
(Expert) 02 April 2012
if NOC was specific requirement and company has wilfully supreseed said fact the bank can action as provided under the agreement
V R SHROFF
(Expert) 03 April 2012
ADVISED : Do not suppress any of information
RAJU O.F.,
(Expert) 08 April 2012
Normally bankers include the clause in the loan agreement that no credit facility or operation in any other bank/FI by borrower without prior permission from the lender bank. In such case, availing another credit facility from others, would be illegal. The lender bank can recall the facility and initiate recovery proceedings if they don't approve this position.
