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Subhojit Sarkar (Proprietor)     16 January 2011

Sarfaesi act 2002

Dear All,

I have a property mortgage loan of 7lacs. I am repaying the loan from past 4 years. last year i have received two notices from the bank to pay the dues against the act SArfaesi act 2002 because i have defaulted 3 EMI s. Thus i repyes the bank the 3 EMIs plus the fine in full. Though the bank instructed me to write a letter to the bank that from nowonwards i will not default anymore otherwise thay can evoke the act again, and i have done that on a plain paper.

Noe, again i have defaulted 2 EMIs and the bank is asking to pay one Emi in two days time otherwise they will evoke the notice again. But i told them i can pay the EMis in the end of this month but they are not listning.

My questions is: Can the bank do so as they are telling?

2. Is my account is NPA?

Please advice.



 12 Replies



1 Like

Subhojit Sarkar (Proprietor)     17 January 2011

thank you sir,

can i have any other options also.

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     17 January 2011

Wait for recipt of notice which will have sixty days time limit and raise objections which they have to reply within seven days. You will get sufficient time.

1 Like

Subhojit Sarkar (Proprietor)     17 January 2011

thank you shashikumar sir.

Uday (Lawyer)     21 January 2011

From your query the following things are understood

1) Your loan account has been declared as NPA during the last year

2) Demand Notice under section 13(2) of the SARFAESI Act has been sent to you last year itself.

3) The sixty days period starts from the date when you have received the notice under section 13(2).

In the above said circumstances, the notice period of 60 days should have lapsed long back. If it is so, the bank can proceed against your property at any point of time.

I suggest you to send a representation to the banker explaining your genuine inability to pay the amount and request them to defer from the possession proceedings. However, the discretionary power is vested with the bank alone.

Subhojit Sarkar (Proprietor)     22 January 2011

thanks a lot for your values opinion.

Last year  when i have received the notices, i have cleared the dues with the fine at that time and then the bank has stopped the legal proceedings, no further notices received from the bank. after that i paid my monthly EMIs regularly. but right now i have two emi pending.

Uday (Lawyer)     24 January 2011

Dear Mr.Subhojit,

After issuing the 13(2) Notice, the bank can take action witin 12 years of the notice. This is the limitation period. Incase, if the bank has issued a notice recalling the 13(2) Notice and they have communicated that the legal action is dropped, then they cannot proceed with the possession without issuing a fresh demand notice under section 13(2). In your case I understand that none of the above has been done. On top of it, you have given requested them to defer the legal action by way of giving a letter admitting your mistakes. In this scenario, my sincere advice will be to approach the bank and explain your situation and gain their confidence. Pls don't wait for them to act.

RAJU O.F., (Advocate)     01 March 2011

See that your loan account is not defaulted for 90 days or more and avoid to slip your account into NPA.  Better switch over to another bank and service the account regularly

Sumit Bhatnagar (service employee)     20 June 2011


Dear Sir,

I have a single residential property in a prime location of gurgaon, I took 13 lacs loan from nationalise bank @ 8.5% floating reducing balance terms.

During the recessions I lost my job as my company winded up, I could not get job for more than a year, I tried to do some business, I opened my current account too with the same bank/branch.

I was continuing my EMI but some time I deposits 2 EMI;s together in the next month as & when I use to get payments in business. Which Bank has taken as my default, I requested bank in a writing to increase my tenure as the interest rate was also increased 3 times during the recession period so it was a 2 sided problem for me.

But bank has not considered, I keep depositing money somehow & maximum I could, bank has also taken all the funds in the current account without my permission to home loan A//c as a result my business to jeaopardized.

Now in spite of my payments more than my agreed EMI till last month, bank has taken a symbolic possession from Dist. Megistrate. 

I took 13 Lac in 2004, I paid around 9.5 Lac till now, still my outstanding principle is 11.97L bank has put all the penalties, Legal & ad charges on my account, Whatever I have been paying they are adjusting against their bills.

I just have single property in a joint name of my mother & myself, My mother also passed away in decemeber.

I have been going to the bank personaly every month with money to deposit, but it seems bank is more interested to take property & ignoring all my payments to them & increasing my due's to 15 lacs.

everytime they take my signatures on revival notices & other legal documents without a date.

What do I do, Please help. I feel like trapped by the bank.

Thanks & regards,



DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     20 June 2011

you can contest the possession if got though Dt court and go to appeal in HC.Take objections from other owners.

Uday (Lawyer)     20 June 2011

Dear Mr.Sumit,

No bank will be interested to grab your property when you have the intention to close or regularise the account. Banks have their own target of maintaining the NPA levels and Delinquency level and their performance is calculated mainly based on the above two things. From your representation, I understand that your account is very irregular. You have also mentioned that the amount paid by you is adjusted towards the legal expenditure and penal interest etc first and later towards the EMI. If the conditions in the loan agreement says like that, then the bank has every right to adjust in the same manner. I can better advise you to request the bank to furnish you the total due amountto regularise your loan account. On getting the same, please clear the dues and thereafter pay the EMIs every month without default. On doing this if you still feel that the bank tries to appropriate your property, it is better to go to some other bank for a take over of the loan.

c.p.s. ramachary (1500)     11 April 2012

I agree with some of the views expressed by Mr. Uday Advocate on the subject query. Your account once slipped to NPA was upgraded by the bank on your making payment and the account became performing asset. Again you have defaulted two installments. According to RBI Guidelines a term loan account (housing loan account) becomes "out of order"  if the installment is not paid on the due date and if this out of order status continues beyond 90 days the account becomes NPA. Therefore if a demand notice is not served to you afresh, you must hurry up and pay all the defaulted installments up to date with interest for delayed payment together with penalty if any charged by the bank to avoid unsavory action under the Act by the bank. Changing bank under takeover finance procedure does not make any difference since all banks have application of same RBI guidelines.  

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