Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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DAVID (MANAGER)     16 February 2011


Dear Sir,

This is David from Chennai -TN, I like to get some clarifation from the lawyersclub member for the below case.

I have taken a Home loan from one of the Private Indian Bank in the year 2004 amount Rs.8.5 Lacks till date I have paid an amount of Rs.4.97 Lakhs for some reason i was not able to repay my EMI for 8 months closely to Rs.85 thousand and i was planning to sell the property and settle the entair loan amount ,when I approched the Bank the bank said me that they  have issued a notice under Sarfase Act Section13(2) and claiming a out standing amount of Rs. 10.25 lakhs .If i pay the i will be ending up paying the bank Rs.15 lakhs for an loan amount of Rs.8.5 lakhs with in a span of 6 years. With the concern of a Lower I have filed a case in City Civil Court -Chennai and want to take up this case with DRT also but DRT refused to take up the case saying that the Bank has not issued notice under 13(4).

Sir Iam willing to pay a reasanable outstanding and settle the issue in the court but I dont want the bank to take possition of my property.


Kindly advice ,Section 13(2) issued on 24 Nov 2010. sixty days passed.






 2 Replies

sheela subbarao (Advocate)     19 February 2011

The case is already in the court. To get out SARFEASI Act is difficult. You can request the court to refer the case to mediation if there is any in your state. Try to negotiate through your counsel and settle the debt with the Bank. Don't be panicy. I think your house fetches more than the debt due.

ajay (SELF)     05 March 2011


In my openion you have to file suit for accounting before the civil courts. If you have arrangement of money then you may also  offer to court the reasionable security in terms of money or security and tried to got appoint account commissioner so that the true and actual figure of your account came in to picture.

as far as notice u/s 13 ( 2) of the act is concern you may file your representation before the Authorised officer u/s 13 (3 A) of the Bank and got clearification about your accounts  and may settled the matter.

Although it is very much clear that u/s 35 of the act no court has jurisdiction to try and look in to the matter relating to proceeidng initiated under sarfasi Act. But in Maradia chemicals the Supreme court has stated very clearliy that accounting suit may be filed before the civil court if there appears any discripency in the accounts.

It is just my own view


ajay varshney


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