prakashbmw123@gmail.com (Owner) 17 June 2011

Co-operative bank case

From

Prakash.L

572,6^th Main, 6th Cross

P.J Extension

Davangere

Karnataka

Email: prakashbmw123@gmail.com

M-09844488854, 9448112297

Dear Sir

We are having Overdraft Account with SKP Co-operative Bank, since from 10 years. We availed 26 lakhs loan by giving Collateral Security of our 1 residential House and 1 Commercial building. Due to heavy losses in our business we could not able to pay interest regularly but it came to NPA finally. From their banker started charging compound interest basis now it came to around 50 lakhs. Now banker went to DRCS Court from past one and half years.

In our agreement it has been agreed to pay 13% Interest and 2% panel interest. But they are charging 15% in total to our principle loan plus compound interest

In our agreement no where it is mentioned about compound interest clause

Due to heavy loss we don’t have money to pay accordingly to the bankers demand.

So I request you to please guide us with winning legal points to come out of this crisis.

If possible please provide your email id and contact details so it may more easy

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1 Replies

MANOJ HARIT (LAWYER) 19 June 2011

Mr. Prakash,

The following points need to be considered -

1. The value of properties mortgaged to the Bank. If the same is more than the out standing, it is better to settle the loan accounts. Otherwise the Bank would get a Certificate from the DRCS & auction the properties. And that too at throwaway prices.

2. Attend the hearings before DRCS. Ask for the details of documnets executed from the Bank & inspect the same. There u may find certain ommissions & commissions. Raise the issues & delay the action. The Bank may come forward to do OTS.

3. Get the Accounts Statement since the beginning & check interest calculation and the application of same. U would most certainly find over charge of interest. Get it cleared from the Bank.

4. Engage an experienced lawyer.