NPA

Dear client,
As per the Section 13(2) of the SARFAESI Act: A lender must issue a written notice to the borrower to discharge their liability within 60 days if there is a default in repayment of a secured debt. If the borrower fails to repay, the lender can take possession of the secured assets under Section 13(4).Section 13(3A): After receiving the notice under Section 13(2), the borrower can make a representation or raise objections. The lender must consider this and respond within 15 days if the objections are not accepted.
In the ITC Limited v. Blue Coast Hotels Ltd. & Ors. (2018): The Delhi High Court reinforced that the lender must consider the borrower’s objections before proceeding with taking possession of assets. Hope this answer will help you.

Dear Client,
Out of two loans, if one is marked as NPA by the Bank for non-payment of dues on successive occasions that damages your credit(CIBIL) record and adversely affects the other loans, The Bank/lender takes the usual course of action to recover the debt from the borrower following provisions of relevant laws. As per sub-section (2) of Sec.13 of the SARFAESI Act, a creditor/lender is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt. If the borrower fails to discharge his liability despite the service of notice, the creditor is free to recover the debt through the modes prescribed in sub-section (4) of Sec.13 of the Act by taking over possession of the secured assets of the borrower. Sub-section (3A) of Section 13 of SARFAESI Act was introduced by way of an amendment in the year 2004 whereby the borrower is allowed to make representation or raise an objection to the notice issued under subsection (2) of Sec.13. A further duty is imposed on the creditor to consider such representation/objection and if the creditor concludes that such representation or objection is meritless, he shall communicate within fifteen days of receipt of such representation or objection the reasons for non-acceptance of the representation or objection to the borrower. The Delhi High Court observed in the judgment of the Supreme Court passed in ITC Limited v. Blue Coast Hotels Ltd. & Ors.: 2018 that the intention of the Legislature in introducing sub-section (3A) is to ensure that objection/representation of a borrower against any action for enforcement of security interest is considered before a creditor proceeds to take possession of the secured assets in terms of Section 13(4) of the SARFAESI Act. In the given situation, you may negotiate or settle your dues against loans with the Bank by following the steps like lowering your interest rate, arranging for a reduced interest rate is one of the most common requests a defaulter borrower can make to the Bank, creating or restructuring a repayment plan or extending the tenure of repayment of a loan, looking for debt forgiveness. considering loan consolidation, offering a one-time settlement payment. Following these steps, you may write an application requesting for settlement of dues to the concerned Bank stating why you cannot repay your outstanding dues lying against the loans. Also, write that you want to explore alternative repayment terms. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path to resolve or settle the matter with the Bank.