cpc

bank cc limit unsecured

BBA LL.B ( Practice at Rohini District Court & Dwarka District Court)

A , got a OD limit of Rd 10 Lk in state bank of Patiala now it's state bank of India .
Here. issue is that A's business has been closed and A is not in financial position to return OD amount in full amount. A already deposited a sum of Rs 2Lk .

Now bank demanding balance OD amount.

what is the remedy available in law for settlement of bank defaulter .

please suggest early because it's urgent need.

thanks
 
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Advocate

The posting suggests no legal elements.

 
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BBA LL.B ( Practice at Rohini District Court & Dwarka District Court)

sir I think that compromise is good option ?
 
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Advocate

OD account a regular monthly Interest charged and debited from the saving account of the customer. OD account can be renewed every year on provided payment. In these circumstances there is no issue bank will insist for refund the complete amount immediately. In most cases OD account is secured account with security pledged to the bank. Considering all these I don't think any problem dealing with the bank.
 
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Retired employee.

OD is always linked to stocks and a limit is against margins on stock.   Closing business without repaying the amount is criminal as the understanding as per agreement is that he should not draw the amount more than the prescribed margins on stocks.  This amount must be repaid.   Compromise etc., may step only if there is no adequate collateral security and third party guarantee.  Now Banks are directly proceeding for recovery through sale of property by following laid down procedure.   To my knowledge, no bank spares a fraud and permit any concessions when there is immovable collateral security.

 
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BBA LL.B ( Practice at Rohini District Court & Dwarka District Court)

Thanks a lot Prasad sir , there is not any collateral security and not third party guarantee for bank OD limit . it's only against stocks . it's purely unsecured OD limit .
Now A have not adequate fund for repayment OD limit .
please suggest how A remove his liability of OD limit.
 
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Retired employee.

It depends on the Bank Recovery Team decisions  If Bank Manager is tough, he can file criminal complaint to Police for cheating and criminal beach of trust and also attach properties in the name of borrower, though not offered as securities for this OD.  The same extends to Guarantors also and Guarantors properties can be attached  and there is no need to go to court.

 

 
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BBA LL.B ( Practice at Rohini District Court & Dwarka District Court)

thanks sir , please tell me what is procedure of compromise and what is the effect in future after compromise .
 
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Retired employee.

The bank must be worried, and if they are not taking any steps means whereabouts are not known or officers are lethargic in recovering public money.

Meet concerned manager at his branch.   Express your difficulties convincing them of your genuine incapability. Do not commit any thing or sign.  Speak to other relatives/friends on proposal of Bank.  Sort it out through negotiations.

 
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BBA LL.B ( Practice at Rohini District Court & Dwarka District Court)

A has negotiated with bank manager and recovery agent and bank and recovery agent offered that they need only principle amount and interest will be waived. But A can arrange only 2lk or 3lk and principle amount is 10lk . He has already deposited 2lk in OD account. Is there any option for 50-50 compromise according to law.
 
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