Advocate Mallika Gunde

Questions Answered by Advocate Mallika Gunde

Q: NPA home loan - filed OA in DRT Pune but wants to regularise it

I had taken home loan in April 2019, I paid loan emi upto 6-7 months, then Covid started I got the moratorium of one year, then after 2021 I never paid emi till 2025 due to very bad situation, but last year I started paying the Money directly into the Loan account 3.5L, I requested them to regularise my home loan and provide me some concession for last 4 year's missed emi/interest payment which is around 10L, but they refused total due amount is 30L, loan amount 22.5L, now what to say in DRT

Advocate Mallika Gunde answered
You may submit a written representation to the Bank requesting reconciliation of the account, correction of any wrongly levied charges, waiver or reduction of penal charges and consideration of loan restructuring or a One-Time Settlement (OTS), depending on your repayment capacity. If the Bank has initiated proceedings under the SARFAESI Act, you may challenge the relevant measures before the Debt Recovery Tribunal (DRT) under Section 17, provided the statutory requirements are satisfied. Place proof of your ₹3.5 lakh payment, the loan agreement, the account statement, and your correspondence seeking regularisation on record. The appropriate remedy depends on whether the Bank has issued a demand notice, taken possession of the property, initiated an auction, or filed recovery proceedings.

Q: Interim Stay Order under Section 38(8) to freeze loan account status

I took an auto loan of Rs 2,13,722 from IndusInd Bank. Paid all EMIs on time, but within 5 months, the vehicle was destroyed in a fire. I filed a case in Consumer Court. The insurance company paid Rs 2,00,000, and I paid the remaining Rs 13,903. The entire loan stands 100% cleared "UNDER PROTEST". The bank suffered zero loss and earned a profit.As per Clause 1.1 of the agreement, the bank has technical provision for Asset Substitution (amending engine/chassis numbers), which they admitted in writing. However, now the bank is rushing to unilaterally close the loan account to stop hypothecation transfer to my new vehicle.The Hon'ble Judge asked if there is a past precedent for vehicle substitution. Most accident victims are defaulters, so no such precedent exists. Since the bank has provision but is denying it, how can I obtain an Interim Stay Order under Section 38(8) to freeze the account status?

Advocate Mallika Gunde answered
Consider Order XXXIX Rules 1 and 2 read with Section 151 CPC, as applicable to the proceedings. Emphasise Clause 11.1, the bank’s written admission regarding asset substitution, complete repayment of the loan, payment under protest, and the prejudice caused by unilateral closure or refusal to transfer hypothecation. Seek preservation of the account status pending final adjudication, supported by the agreement, correspondence, insurance settlement, payment receipts, and evidence of the proposed replacement vehicle. You can seek an interim injunction directing the bank to maintain the status quo regarding the loan account and restraining it from taking any action that would defeat your claim for asset substitution, subject to the terms of the loan agreement, general principles governing contractual obligations and interim injunctions can support your case. The relief will depend on the exact contractual wording, the bank’s rights after repayment, and the nature of the pending proceedings.