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Meha Harish (Proprietor)     20 March 2017

Liability of maintenance charges after possession by bank

Bank took symbolic possession of my self occupied personal flat at Mumbai in July'08 under sarfaesi act. This flat was a continuous security to loans to my Pvt Ltd company and I and my wife are directors and guarantors. Bank has received outstanding amounts of the pvt limited company as claims from ECGC in July'07. They have approached DRT for recovery of the claim paid amounts from the company as well as guarantors for repayment to ECGC. We have contested the NPA classification claims because there were no overdues and the accounts were not classified as NPA at all as is evident in account statements, on the NPA date claimed by bank in demand notice and also accounts could not be classified as NPA before even claims were filed with ECGC, etc.etc. and the matter is sub judice at DRT since OA filed in 2009. We have observed that in the copy of 'Memorandum of deposit of title deeds' document submitted by bank at DRT, the bank officials have unilaterally inserted the details of this flat given as continuous security on their own without our knowledge and consent. I had given another flat as collateral security to loan of my company and this document was for the flat given as collateral security which the bank has sold in 2008 under sarfaesi act (without newspaper advt, auction process, private treaty, independent valuation etc etc) Due to closure of our SSI unit due to banks illegal recovery actions, and this was our only source of income, we could not pay the monthly dues of the housing society since 2008 and the dues have mounted to over Rs 15 lakhs. Society has initiated legal action for recovery at Co-op court. I have informed the society about illegal actions of the bank and given the copy of symbolic possession notice which states that nobody should deal with this property. Bank has not issued newspaper advertisement, auction sale notice, official valuation since taking possession in 2008. I have written to housing society to lodge claim with the bank who has taken possession and not from me. Am I legally correct?? Can the bank recover ecgc claim paid amounts from guarantor???. What remedy do i have.


 1 Replies

Uday (Lawyer)     30 August 2017

Can you make the query simpler?

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