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Unable to pay ATL because of bank's failure to release funds
01-May-2023 (In Banking / Finance Law)
Applied for Agricultural Term Loan (ATL) in end of 2006 at SBI. ATL is for expanding the Dairy Farm. After great delay loan was sanctioned in November 2008. (Note: sbi Did not sanction all the components that were mentioned in the project proposal). Monthly Installment Starts on April 2009 after Gestation Period of 6 months. Untill March 2009 that is upto the end of Gestation Period only less than 20% of the Loan Amount was released. One year from the loan sanction date that is upto November 2009 only less than 55% of the Loan amount was released. (Note: Only less than 95% of the Sanctioned Loan Amount was released). Bank did not release full loan amount on time. So project not able generate income. Since no income not able to pay EMI. Bank declared my account NPA. Now bank gone to Debt Recovery Tribunal. How to solve this issue
If you have enough documentary evidence on hand to support your contention, you may successfully defend your case at the DRT. If not, better opt for an out-of-court settlement with your bank, requesting for favourable consideration under RBI norms.
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Adv. Swaminathan Neelakantan
Coimbatore | 400+ Answers
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