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Sayed Maqsood Ahmed   16 November 2023

loan recovery agent

dear learned advocates

one owner of our housing society has defaulted in payment of bank loan. Can we allow the bank recovery agent access in our society to meet the defaulter flat owner. or deny access to bank recovery agents.

what action can we initiate against the member of our society, etc.

please advice immediately

kind regards


 10 Replies

Shashi Dhara   16 November 2023

He is liable to repay the loan, if he is unable anyone in society  or society can pay that instalment to bank agent and recover from that defaulter.

Sayed Maqsood Ahmed   16 November 2023

Thanks for your valuable advice 

Best regards 


T. Kalaiselvan, Advocate (Advocate)     16 November 2023

The society cannot stop the bank loan recovery agent from having access to the defaulter living within the complex of the society.

The Society can  instruct the recovery agent to not to indulge in any illegal method in the name of recovery and if the condition is breached, the society can warn the agent that proper legal action would be initiated against him for this offence, through local police


The person in question owns only an apartment in the housing society and not the whole society. He might have taken loan from the bank and from the housing society. 

The dispute is between the person who has borrowed money from the payee and not between the housing society managing committee and the apartment owner (it needs to be noted that societies are owned by the apartment owners and not by the managing committee. Managing Committee's job is only to manage the admn. and oversee the welfare of the apartment owners and not to take the law in it's hand.). The payee of the loan amount has every right to demand the amount, paid to the apartment owner for which the payee has to abide by the law of the land. 

Society can't stop the payee from visiting the apartment owner who has borrowed money from the payee but can't create any nuicense within the complex and society can't be part to the same. 

It is suggested to ask both the parties to settle the issue as per law of land but not within the complex and disturb other apartment owners.



Sayed Maqsood Ahmed   17 November 2023

Many thanks sir for your valuable advice and guidance.

Best regards 

P. Venu (Advocate)     17 November 2023

The query is too pretentious. A Society is not a fortess and the managing committee its gate keeper. Please post complete facts if there are deeper issues.

T. Kalaiselvan, Advocate (Advocate)     18 November 2023

You are welcome for your appreciations 

Sudhir Kumar, Advocate (Advocate)     19 November 2023

Actually some societies are adopting a way that they do not allow entry of anyone inside withou permission of the person towhom they are visiting.


This regulation of access.


At times so society goe too far and even stop public officias (health survey / COVID worker / BLO / Censu etc) the have got theyr own ways of entry . At times some gaurds are taken to task by the police.


However loan rrecovery agent?

Pleae see the society constitution.   Does any clause authorise you to protect loan default of residents?

In case the society still is adamant to ensure that loan agents will not enter they it is likely that the address of the society may get blacklisted and no resident may be given any loan by any bank.


In that way are you working in the intrest of residents?

Do you have any arrangement to arrange aons for reidents?

bhagwat patil (Property due diligence 9422773303)     20 November 2023

To borrow a amount ie loan and right to recover it is a contractual right.

To live peacefully is fundamental right, which is superseds contractual right.

If he as a lawful authorised by bank and legal authority to visit the borrower by entering in borrowers apartment you shall allow him .

Otherwise you can stop him at meeting in visiting room and call the person ie borrower to meet him.

As the personal space of member of society starts from the gate of society.

Inspite of all this better way to pay legal amount . If not possible ask him to contact bank higher officials for compramise.

Sayed Maqsood Ahmed   20 November 2023

Many many thanks for your valuable suggestion 

Best regards

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