Account is npa and possession is taken

Question

Sir two properties were loaned and both the properties were npa the value of 1 st property is 65 lakh and second 3 cr and the loan being worth 93 lakh...so cant we save the second property which is three storey building by asking bank to sell the first property completely and second property that is 3 storeyed building floor wise.is their any procedure aur letter we can provide to bank

Vidhikarya · Accepted Answer

How come when the valuation of the first property is INR 65 lakhs and the recoverable outstanding dues is INR 93 lakhs. Since both the property is declare NPA a proceeding against both the properties will be initiated by 60 days demand notice under the Sarfaesi Act to discharge dues within the stipulated period mentioned in the notice from the date of receiving the notice. Where the borrower does not discharge dues in full within 60 days THEN WITHOUT INTERVENTION OF ANY COURT OR TRIBUNAL Secured creditor bank may take physical possession i.e. collateral and auction it to recover the debt. In certain cases it is not feasible for the bank to take physical possession because of XYZ reasons. The secured creditor issues symbolic possession notice and then proceed with the auction based on symbolic possession.If you have received a 60 days demand notice then you may contact Vidhikarya for allotting a local DRT lawyers. An objection needs to be raised under sub-section 3A of section 13 of the Act within 60 days time period of such notice and thereafter the bank shall communicate within one week of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower You may take your chance by making an offer in such representation of repaying full dues auction of the first property worth INR 65 lakhs and the remaining balance in liquid assets.  This acceptance of your offer is absolutely at the discretion of the bank. If the bank does not accept your offer and proceed with the take possession of your property of auction then you may approach firstly DRT by filing a case to stop bank auctioning your properties and if you feel that there is an error in the DRTs decision you may prefer an appeal before DRAT. The limitation period is 45 days and 30 days respectively. Note  Alternatively you can make an offer to the bank under OTS scheme. However while entering compromise settlements in NPA accounts the Bank shall ensure that the Net Present Value NPV of the settlement amount should generally not be less than the net present value of the realizable value of securities. There is another way of impeding the taking of possession or sale by the bank in the event of default if tenants have been set up and inducted by the borrower after the creation of the mortgage by creatingantedating documents. These Tenants would resist efforts of the Bank to take possession of the property by contending that they cannot be dispossessed except by following due process of law i.e. after a civil suiteviction petition has been filed in a regular Civil CourtHouse Rent Control Court and a decreeorder of eviction has been passed. Such litigation would take a long time and consequently delay the process of recovery and thereby defeat Sarfaesi Act.Every case is different from the other and has its own merits and demerits.

Vidhikarya · Answer

Bank can recover its money by auction of both loaned properties.

Vidhikarya · Answer

Sir now Bank loan recovery is strictly executed. Any bank not taking any excuses about loan recovery.  Its highly recoverable monetary matter. Better way to hire best property lawyer and consult with it. You can approach to vidhikarya lawyer for procedurel aspects.

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