Poa & principal relationship

Kani (Querist) 08 September 2021 This query is : Resolved
Dear experts, kindly share your valuable knowledge. I am a banker and a person has taken loan from us. Now the loan has become bad and bank has to file suit for recovery/SARFAESI. The person also has another account with us under POA where he is the principal but the account is run by the attorneys holder under the principal’s PAN. This account is still running well. My question is whether I can attach the POA loan account to the principal’s bad loan account while filing suit/Sarfaesi process

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A banker is seeking advice on whether they can attach a loan account managed under a Power of Attorney (POA) for a principal's defaulted loan. The principal has a separate, well-performing account managed by an attorney-in-fact under the principal's PAN. Experts generally agree that separate accounts cannot be automatically combined for recovery. However, if the principal authorises the transfer of funds from the POA account, it might be possible, subject to legal counsel's advice and adherence to SARFAESI Act procedures.

Dr J C Vashista (Expert) 09 September 2021
You are maintaining two different accounts, each one is separate from another which can not be clubbed.
NPA has to be proceeded against principal borrower(s) as well as guarantor(s) after balance confirmation, recall notices, and notice u/s 13 (4) followed by 13 (8) and 13(11) of the SARFAESI Act.
What is the opinion and advise of panel lawyer(s) ?

kavksatyanarayana (Expert) 09 September 2021
Yes. What is the opinion of the legal adviser of the bank? I think if that person gives authorisation to transfer the amount for which he is due from the account which is maintaining by his authorised agent.

Advocate Bhartesh goyal (Expert) 09 September 2021
Agree with advice of above experts.

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