section 31(j) of sarfaesi act regarding exemption

managing director

Section 31(J) of Sarfaesi Act stipulates that no action can be taken under the Act if the amount 'due' is less than 20% or Rs.1 lakh.

An account is declared NPA on 1.10.2010.  The outstanding in various limits is Rs.175 lakhs.   The overdue interest and principal instalment of term loan are Rs.17.5 lakhs even though 90 days have elapsed.   Can the Bank invoke action u/s 13(2) or should allow the amount to build up above Rs.35 lakhs(20% of Rs.175 lakhs).   RBI norms states that if this overdue amount is paid i.e. Rs.17.5 lakhs, then the account should become standard and regularised.

 


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Adv P & H High Court Chandigarh

In case 17.5 lakh has been deposited then such account shall become standard and regularised as per guidelines of RBI so if bank refuses to do so then file a complaint under DRT.

 
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Adv P & H High Court Chandigarh

In case 17.5 lakh has been deposited then such account shall become standard and regularised as per guidelines of RBI so if bank refuses to do so then file a complaint under DRT.

 
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Adv P & H High Court Chandigarh

In case 17.5 lakh has been deposited then such account shall become standard and regularised as per guidelines of RBI so if bank refuses to do so then file a complaint under DRT.

 
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POWER OF DEFENSE IS IMMENSE

DRT is legthy procedure first the lender has to comply with other requirements such notice and reply to the notice.

 

Even after that let the lender go to THE  DRT. If possession is tried resist by legal action since most of the time the lender do not follow all the step given in the act and rules.

 
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Manager

@ JSDN

 

Please let us know what act and rules the lender / bank needs to follow

 
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Manager

@ JSDN

 

Please let us know what act and rules the lender / bank needs to follow

 
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If you have paid the entire "amount in defalt" to the bank, the bank has to treat your accounts as standard as per the guidelines of the Reserve Bank of India pertaing to Non Performing Assets (NPAs). Since your accounts are no more NPAs, the bank cannot proceed afauinst you Section 31(J) of Sarfaesi Act

 
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POWER OF DEFENSE IS IMMENSE

1) the lender has to give notice and has to give sixty days time for reply.

2) get and expert to reply and raise as many objections as possible.

3) lender has to respond within next seven days.

4) You can agains counter objections on that reply.

sufficient time is available to take further legal action for that an expert is needed.

 
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Manager

@ jsdn

How and on what basis Banks  sanction Loans, even bank can do mistakes for sanctioning loan can you please highlight that point majority of the bank officers take bribe to sanction loans.

 
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