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OTS Settlement

(Querist) 08 August 2009 This query is : Resolved 
My unit became a NPA in 1998. A decree was passed in 2003. The Bank called for an OTS settlement in 2004. I paid the upfront. Then, I could not fulfill my commitment. Again the bank called me for an OTS. in 2005. I started paying in instalments. There was one year time ,up to june 2007, I with the good intention, promised to pay before Dec 2006. I paid , but a percentage could be accomplished oly during March 2007. The bank accepted my payments. I deposited the amount ina joint account with my husband in the same bank. After getting the ratificationfrom the LHO, they transferred the amount to my company;s laon account. The Bank also gave me a No due certificate , not in a letter format but in the form of account statement. I made frequent reminders to the branch and LHO to return my documents. There was no response. Suddenly ,the recovery officer , from DRT ,wanted to attach the properties in Oct 2008. I submitted a petition to DRT, my petition was dismissed. I am perplexed. The no due statement ,according to the bank's contention , is not exact , there is a shadow balance. They have quoted from Narasimhan Committee. I am at a loss now and totally disillusioned with Indian Banking.
sheeba (Expert) 08 August 2009
Hello,
After going through your query, I could understand that a no due certificate can be issued if no amount is due from your side to the bank. You have to see whether the account statement given by the bank contains any balance outstanding in company's name.Again you say that all of a sudden recovery officer came to attach your property. Without notice to you and due process of law , how can an attachment be made. So please see whether registered notice from DRT had been accepted by you or any adult member of your family. Then contest the matter.
Y V Vishweshwar Rao (Expert) 08 August 2009
1- Decree is passed in 2003 by DRT !

2- 2005 OTS - Terms - payment by December 2006 -not complied

3- Paid up to March /June 2007

4- OTS Terms appears to be not complied
The manager Received the Amoutns and transferred the Joint Account in to Loan account and Statement show that there is no due - in Statement of account - NPA A/c Statement

5- The Recovery office attempted to Attach the proerty in October 2008

6- with these facts it is clear that the OTS is settled with conditions and not complied - OTS Letter stands revoked - these Words will be mentioned in the OTS Letter -

7 After NPA the Accoutn will be kept in NPA Account - Interest will not be added(booked) to the Loan accoutn/NPA A/c - but interest will be caluclated and kept separatly - ( the same is called as shadow accoutn for Accrued interest from to time )

8 The Loan Accout became NPA in the year 1998 - DRT Case & Decree is pased in 2003 - It is better, again , try to negotiated with Higher Officials of the Bank and Streessed Assets Recovery Center( SARC) of the Bank

9 I advise You to approach the Higher Officials of the Bank and explain all the facts and request them to reconsider the previous OTS & Payments made by You !


Kamal Grover (Expert) 09 August 2009
Mr.Vishweshwar is right, you should contact to the higher authorities of the bank and after getting the reply, you may file a writ in the High court against the order of DRT.

Your further clarification is welcome at nominal consultation fee;
adv.kamal.grover@gmail.com
Regards
KAMAL GROVER (ADVOCATE)
PB. & HRY. HIGH COURT CHANDIGARH (INDIA)


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