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One time settlement

Querist : Anonymous (Querist) 19 June 2024 This query is : Resolved 
Hi Sir, My Father bought Educational Loan - 10 lakh in 2009 , for my sister to pursue MBBS. She Died in 2015 while working as a Government Doctor due to Septic Shock. After a Year My Mom (Guarantor ) Died Due to Kidney Failure.Both the Borrower and Guarantor Died. Bank Filed a Case on DRT Three years Ago.Now the Final Order from drt has came.

Now bank sent me a sarfaesi notice u/s 13(2) two months ago with demanding an amount of 34 Lakhs. I Sent an OTS Offer of Rs. 12 Lakhs and I have waited for their reply for two months but there is no reply from bank. So I Approached the bank after 60 days. Now they told me that we can't do anything and we are going to auction off your house.

To Avoid Auction process, I Sent an Another OTS Offer of Rs.18 lakhs but still no reply from bank.

I Never Want My House to be Auctioned.

What Should I Do Now? How to Approach this Matter?

Isaac Gabriel (Expert) 19 June 2024
Better seek to settle the matter through Lok Adalat.
T. Kalaiselvan, Advocate (Expert) 19 June 2024
The case has been decided against you by DRT also hence the bank cannot accept your offer for OTS at this stage.
Especially the outstanding amount is above Rs. 34 lakhs whereas you don't even offer to pay even 50% of the outstanding amount especially when the matter has already been decided by DRT against you.
You can visit the bank's branch, negotiate with the manager in case you want to save the property.
Law cannot sympathize you especially when you have not properly represented your case before DRT and did not bothered to negotiate or offer OTS at that time may be due to some misguidance.
You perhaps have lost all the opportunities that was before you, hence you may as a last attempt request the bank manager and better offer a higher OTS amount and of course, it depends on the discretion of the bank manager.

kavksatyanarayana (Expert) 19 June 2024
Yes. You have the least chance if you pay higher OTS, otherwise, you may approach a civil court but there also you may fail. You'll be able to try your luck consulting a local advocate.
Approach the Bank with a reasonable and realistic one-time settlement (OTS) proposal. There is no alternative other than that.
Sri Vijayan.A (Expert) 20 June 2024
The matter has already been decided by the DRT.
The banks are handling the public money, so bank officials do not have power to negotiate at this stage, so you cannot expect fruit.
Act wisely. Dont waste time in trying for compromise. You wont get any favourable result in lok adalat, that stage has gone.

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