Time limitations for debt recovery application at drt
10 months ago
What is the time limitations of filed OAcase against the borrower? At dtr?
A.Dear Sir,
Normally, three years is the limitation to file any recovery suit. But renewal of loan etc, documents will be taken by Bankers by way of your signatures on blank forms and thereafter they will fill the same saying that you have got renewed the loan etc.
Normally, three years is the limitation to file any recovery suit. But renewal of loan etc, documents will be taken by Bankers by way of your signatures on blank forms and thereafter they will fill the same saying that you have got renewed the loan etc.
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Anonymous
Replied 10 months ago
Sir, bank loan disbusal letter given me a on dated 13/5/2016, and NPA date is 28/02/17 , bank (13)2 notice served on 30/05/ 2017, then the till date no recovery OA suit filed by bank so what is the limitation period is barred for fied case?
A.Section 19 of the DRT Act enables a bank or a financial institution to recover any debt from any person by making an application under the aforesaid section before the appropriate Debt Recovery Tribunal having jurisdiction.
A secured creditor may also simultaneously pursue its remedies under the SARFAESI Act 2002 as well as the DRT. For the application of the SARFAESI Act, the account of the borrower must be classified as Non-Performing Asset(NPA) by the secured creditor and must have an outstanding balance of INR 100,000 or above. A time limit of 45 days for filing an application under Section 17 of SARFAESI Act is provided for quick enforcement of the security.
A secured creditor may also simultaneously pursue its remedies under the SARFAESI Act 2002 as well as the DRT. For the application of the SARFAESI Act, the account of the borrower must be classified as Non-Performing Asset(NPA) by the secured creditor and must have an outstanding balance of INR 100,000 or above. A time limit of 45 days for filing an application under Section 17 of SARFAESI Act is provided for quick enforcement of the security.
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A.Dear client,
The time limitation is a maximum period of four months from the date of making such SA. Pertinently, the DRT is required to record its reasons in writing for extending the such period.
Thank you
The time limitation is a maximum period of four months from the date of making such SA. Pertinently, the DRT is required to record its reasons in writing for extending the such period.
Thank you
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