Protection against sarfeasi act
Anjul Kumar Jana
(Querist) 29 June 2014
This query is : Resolved
X bank sanctioned a sum of 700000 as loan in 2006 to A. A has drawn 400000 from that account. A has already paid a certain amount of loan. Later CBS service started by the X bank, where A's account shown fully drawn. Manager of X stated that, it was technical failure. Thereafter bank is not giving any account statement. The loan A/c declared NPA on 30/04/2010 and outstanding amount is 500000 as unpaid loan of A. At present bank served notice u/s 12(2) of SARFEASI Act stating loan amount debt of A is 666700.
What relief A is entitled to?
Whether civil court has any juridiction?
ajay sethi
(Expert) 29 June 2014
reply to notice mentioning that on account of technical failure in maintenance of computerised account A account is being shown as full drawn . as against loan of Rs 7 lakhs only 4 lakhs has been drawn as per bank own admission . the loan installments are being paid on time and there is no default on part of borrower
R.K Nanda
(Expert) 29 June 2014
consult local lawyer.
Rajendra K Goyal
(Expert) 29 June 2014
After switching to CBS, the total limit used may be shown full, it would not effect any way till outstanding amount is changed to full. It seems such thing has not happened.
You must be receiving periodical statements from the Bank, you also must have maintained the account in your books, try to reconcile the difference in entry.
You can visit the Bank and take the statement from previous books. If no cooperation write to their Head office.
Presently reply the notice, consult a local lawyer.
J K Agrawal
(Expert) 29 June 2014
Civil court only has jurisdiction to resolve quantum dispute.
No BAR in SARFAESI on such a suit.
Anjul Kumar Jana
(Querist) 21 January 2015
THANKS SR. LD. J. K. AGRAWAL & DELAYED FOR UNAVOIDABLE CIRCUMSTANCES AND SORRY FOR THAT.
I WAS FRUSTRATED AS ALL THE SENIOR COUNSELS ADVISED TO TAKE SHELTER OF DEBT RECOVERY TRIBUNAL WHICH IS BARRED BY MY PRACTICE JURISDICTION EVEN IN CASE OF QUANTUM DISPUTE.
I HAVE ALREADY REPLIED THE BANK STATING ALL THE FACTS, BUT OF NO GOOD.
I AM WISHFUL TO KNOW THAT THE CIVIL COURT HAS THE JURISDICTION FOR THE PURPOSE.
PLEASE ADVICE ME TO FILE SUCH SUIT INCLUDING DRAFTING AND PLEADING.
