DEMAND NOTICE ISSUE WHILE MATTER IS IN LOK ADALAT
3 years ago
The matter is related to a case where the loan borrower has died four year ago, his house is mortgage to bank against a loan of Rs. 4Lakhs. At the time of death only 1.80 lakh was deposted after death. legal heir (wife, 2 Children, and mother) have deposted 1.80 Lakhs. Prayed the office for waving off the balance amount but they refused. Legal heirs file an application in lok adalat for requesting the court for settlement with principle amount ,the matter is in lok adalat now, mean while bank issued a demand notice for balance loan with interest. and saying the will put the house on auction under sarfaesi act 2002 .Now my question is :
01 - Can bank issue a demand notice when the matter is lok adalat.
02. What are the chances of waiving off the loan with principle amount.
03. if the matter is in lok adalat can they start the process of sarfaesi act
Ayantika Mondal @ Prime Legal
Responded 3 years ago
1. Yes, they can still serve notice.
2. This is unlikely, but will depend on the circumstances surrounding the case.
3. Yes, they can. However, you can request them to defer from doing this until the Lok Adalat comes to a verdict.
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1. Yes, this would impose no bar on the serving on notice.
2. This will depend on the facts and circumstances of the case.
3. Yes, but you can file for extension of time period.
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A; Yes, a bank can issue a demand notice when the matter is lok adalat.
02. What are the chances of waiving off the loan with principle amount.
A: If the Home loan / Mortgage loan is insured then the entire balance is collected from the insurance company & if it is indivdual settlement then it depends on cases to case basis.
03. if the matter is in lok adalat can they start the process of sarfaesi act
A: yes
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