prasanna kumar (individual) 13 May 2011

damages against bank

Further to my previous post. I had availed facilities for my ssi unit. due to various reasons including not release of sanctioned funds from the bank my industry went sick. bank initiated serfasea action. I contested the same in DRT. But my advocate did not conduct the case properly at DRT. He did not raise any valid points in the case which is recorded by the DRT order and my case is dismissed. I went on appleal with DRAT. However I could not pay the mandatory deposit of 27 lakhs as prescribed by the DRAT. But the case is still pending.

I have from day one asked bank to offer me OTS which they have rejected .

I want to claim damages against the bank for their wrong doings because of which my industry completely closed and the property is in possession of the bank. Since I have lost the case in DRT can I file damage suit against bank. If so, where should I file the damage suit. Is it in the DRT again or in a civil court, Banks claim from me is about 1.08 crores. I have lost several crores of business and reputation and am completer devastated.

learned advocates, kindly guide.

Thanks in advance

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6 Replies

Narendra Sharma (Consultant) 13 May 2011

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RAJU O.F., (Advocate) 17 May 2011

When banks initiate proceedings under SARFAESI, the borrower has to immediately find out a good advocate who is conversant with the said Act provisions and who has been handling similar cases on behalf of the borrowers. For this purpose, the best way I advise the borrower, is to go to the jurisdiction DRT and watch the arguments and then he will find a good and suitable advocate, to take proper grounds under the Securitisation Appeals, before DRT and DRAT. In most of the cases, since the amount involved is large, unfortunately some advocates who don't know anything about DRT and SARFAESI take up such cases and the borrowers land up in trouble.

pervez (adviser) 17 May 2011

Dear, you may consider filing CRP ( Civil Writ petition) in High Court challending the order of DRAT on the gorunds, which your advocate would be in position to decided.. I have seen few cases in which such action had been taken and the process was stalled in High Court. In fact regarding your claim for damages, you could have filed counter claim in DRT itself but that stage has gone.. perhaps your advocate has not guided you properly .. regards..

prasanna kumar (individual) 22 May 2011

sir,
Thank you for the information. Now appeal is still not dismissed as of now. but my advocate say by 26th May if I do not pay the amount required by the court the case will be dismissed. My questin is whether the CWP is to be filed before hight court after the dismissal from the DRAT or even before that the CWP can be filed. As for as the damages is concerned, even while my petition in DRAT and the court is pending can i file a damage claim suit in civil court without waiting for theDRAT or CWP order in high court.
kinldy advice

AV Bagur Advocate (Advocate ) 22 March 2013

The right to file Counter Claim is available till pleadings are completed. Once peladings are completed you can not file Counter Claim. Civil remedy is not barred, but for this you need to consult an appropriate advocate, as it will not only be costly but also a torturous process and you must have ample legal apetite to under take this journey.

Surendra Gupta (Banker) 23 March 2013

Please let me know whether you are covered by Sick Unit definition or wilful defaulter as per RBI's guidelines. Let me know whether you had submitted your proposal for OTS in writing to your bank and have acknowledgement thereof from your bank. Also let me know the reply of the bank to your OTS proposal