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vijay (consultant)     31 July 2010

bank recovery

The Opponents and borrower has recd. notice from Court for recovery.Bank has submitted some documents alongwith the Bank Account statement.It is mentioned in the statement that the balance was written off and shon the balance as 000.00

since the bank has mentioned writing off the amount anfd even if they show on the new page the outstanding amount.

Whether the borrower can get benefit of this in dismissing the case contemplating the view that he does not owe any amount any more as mentioned in the statement which itself a proof.

We have asked client for getting certified copies of these documents.

we seek the opinion.



Learning

 3 Replies

Balaji M V (Regional Manager)     31 July 2010

If the loan is still unpaid, you can't take the stand there is no outstanding.

Banks have a process wherein they are supposed to classify overdue accounts as NPA after 90days.

After certain point of time ( 3yrs ), they supposed to give 50% to 100% provision for loan outstanding depending upon the value of security offered as collateral.

Beyond a point of time  ( after 5yrs ) the bank can decide to techinally write off the dues by offseting the profit to claim income tax benefit.  This is purely on technical perspective.

Also there is a possibility that principal is nil, but accrued interest and other charges is still unpaid.

Satya Narayana Palukuru (Advocates & Mediators.)     31 July 2010

A technical write off is only in their books which will reduce your liability sir

If documents are alive they can go ahead for recovery

Satya Narayana Palukuru (Advocates & Mediators.)     31 July 2010

please read as it will not reduce  your liability


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