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Ajay (proprietor)     19 December 2010

can we use law torts in India

Dear sir

Bank has use sarfesi act against us where as we were not default in payment even after serving 13(2) notice we were paying instalment and interest,so we think our account were not NPA,bank publish 13(4) notice in newspaper damaging our goodwill and credibility.supplier stop giving credit and so many problem.

Now we have file counter claim on bank for 3.3 crore using law of torts.Can we use law of torts in India.

Reg

Aajay Kumar

Bangalore



Learning

 2 Replies

Vinod kashyap (Advocate & Legal advisor)     22 December 2010

Yes you can but you have to prove defimation and justify amount of compensation

SUNIL KUMAR (MAN)     27 December 2010

It is doubtful in the present case. S. 19 of SARFAESI Act provides right to the borrower to receive compensation on the DRT/ DRAT/ HC holding that the possession of secured assets under S. 13 (4) is not in accordance with the provisions of the Act and rules framed thereunder. Hence, a remedy is available under SARFAESI act and as such a separate suit for tortious liability will not lie.

In any case, please go through RBI circular on Asset Classification and Provisioning Norms, since default in payment of interest is only one of the reasons for classifying the account as NPA. You can also call prefer reply to the Bank requesting them to furnish the specific reason for classifying the Account as NPA.

The reason for classifying the account as NPA may be ascertained in any case before preferring any litigation.


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