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Mortgage loan from bank and declared NPA
24-Nov-2023 (In Civil Law)
We started business by taking mortgage loan from bank and later I moved out from business for job in company. But, partner want to continue business. As he assured to release my property from bank soon. But, he failed to do and he without my knowledge he used money and invested outside. When I am asking again and again, he is telling he is in loss and has no money to repay. Also, he released his property from bank. He left my property in bank. Now banker sending notice for Auction due to NPA. Need support and advise.
The borrower’s account is classified as a NPA if the repayment is overdue by 90 days. In such cases, the lender has to first issue a 60-day notice to the defaulter. Letting go of an asset funded through life savings can be a soul-crushing experience. However, it is a possibility you need to be prepared for in case of a slowdown-induced job loss or business failure. Remember, even if a borrower defaults, she does not surrender all rights to the asset or to fair treatment.
Lenders have to follow the due process while initiating proceedings to recover their dues. In case of secured loans, the underlying mortgaged assets can be repossessed by the lenders under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act. However, they cannot do so without giving you adequate notice.
Lenders have to follow the due process while initiating proceedings to recover their dues. In case of secured loans, the underlying mortgaged assets can be repossessed by the lenders under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act. However, they cannot do so without giving you adequate notice.
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Adv. Raghuraman Balaji
Chennai | 500+ Answers
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When it becomes NPA, the bank will take legal actions through Debt Recovery Tribunal...So when you receive the notice under section 13(2) of SARFEASI act, you can raise objections immediately. The bank should give reply to the objections within 15 days from the date of the receipt of the objections..Then only you can move DRT to stop the proceedings of the bank...As far as your partnership is concerned, you can file a case in civil courts if the partnership deed is registered...
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Adv. Mohamed Kassim
Chennai | 25+ Answers
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