Recall notice before Sarfaesi act demand notice was notice issued.
As on NPA date mentioned in the 13(2) Demand notice, the balances in all accounts were within sanctioned limits / no discounted bills were overdue nor was there any other type of irregularity.
Is it mandatory for banks to file claims with ECGC and get paid before issuing demand notice under Sarfaesi act?? In our case, bank filed claims after Demand and possession notice.
If demand notices are issued against third party mortgagors before filing claims with ECGC, how could sureties be liable to pay any dues since they are entitled to benefit of all securities held by bank as per sec 141 of Indian Contract act.
Can bank recover ECGC claim paid amounts from other sureties / mortgagors.
Can bank take possession of third p[arty mortgagors properties for recovery of ECGC's claim paid amounts??
ECGC pays to banks 75% and 90% of Pre & post shipment defaults respectively. Bank is co-insurer for balance. Can they recover these balance amounts from principal debtor and other sureties??
Once ECGC pays the claim of Bank, the bank is no more a creditor - ECGC adorns the role of creditor. This way there is no debt due to bank. ECGC subrogates the claim recovery process to the bank. ECGC website states that it gives cover to banks to reduce their NPA's. RBI guidelines state that advances covered by Guarantees of Central Govt, even if overdue, should not be classified as NPA till invoked guarantees are repudiated. RBI states that guarantees of ECGC are by a sovereign entity. Therefore, can bank file OA at DRT to claim ECGC claim paid amounts from principal debtor and also Personal guarantee of directors or other mortgagors??