Regarding the Act of God Clause in Crop Loan recovery
2 years ago
Sir, I wanted to understand the Act of God clause in Loan recovery from the Bank. Crop loan or KCC loan was taken in the year 2016, but there was severe flood and landslides in my place in Kodagu district of Karnataka in 2018. Around 10 acres of coffee plantation was submerged inside the landslides and the connecting roads are all damaged and yet to reconstructed. The loan was taken for improving the plantation estates. We are not able to pay back the loan now and bank officers are threatening to use the SARAFESI Act and take over the estate. SARFAESI act is applicable for cash crops like Coffee, Rubber, Pepper.
My question is that, can we use the Act of God clause to save our property. Please guide us.
If there was such a clause in the agreement, you can use that as a defense in court and save your property. You have to refer to the agreement deed and in case of any further advice, please contact a lawyer.
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Thank You
As far as Act of God or force majeure clause is concerned it depends on whether this clause there as part of the loan agreement or not. If it was there then you can take the benefit of this clause.
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