List of Documents Denied by Banker

Dear Client,
A borrower of a loan or over draft(OD) facility is held personally liable for his or her debt for non-payment of the outstanding amount of the loan, and legally, there is no escape route to get rid of that liability. Once the repayment of the outstanding loan stops for 90 days, the Bank/NBFC initiates a routine course of legal action for recovery of the loan from the borrower marking the loan as a bad loan/NPA before approaching the Debt Recovery Tribunal or a Civil Court and after hearing both parties Court may even pass an order for attachment of immovable or movable property of the borrower for recovery of the loan apart from the engagement of recovery agents. However, in case, a provision for resolving the dispute through arbitration under the Arbitration and Conciliation Act, 1996 exists in the OD agreement, before marking dues against the OD as bad loan/NPA, the lender exhausts its course of action as stipulated in the loan agreement and send a Notice under Section 21 of the Arbitration and Conciliation Act, 1996 to the borrower who failed to repay his/her debt/dues against such loans to resolve the matter at the pre-litigation stage which is mandatory before referring the disputes for Arbitration. So, go through the O D agreement to find out whether that contains the provision of arbitration to resolve the dispute and approach the Bank accordingly. You can approach the bank about converting your OD into a personal loan. A term loan comes with a fixed repayment schedule (EMIs), which can make the debt more manageable. Further, debt consolidation is a popular loan repayment strategy that can help you manage multiple debts more effectively. Debt consolidation is an exceptional strategy to repay your debt faster, reduce your financial burden, and become debt-free. However, with debt consolidation, it is important to stay on top of your payments and stick to your payment schedule to avoid accumulating further debt. However, a better option depends on one's financial situation and preferences. In case all of your attempts failed, you can escalate your grievance before the regulatory authority, RBI, online on its grievance redressal portal under the Integrated Banking Ombudsman Scheme at https://cms.rbi.org.in for a quick resolution in the matter. From the contents of the query it seems that the commercial shop which was secured against the OD facility was jointly own by your father along with your uncle and in the absence of NOC from the joint owner, the bank might be unable to take any legal action for procedural lapse on their part. Your uncle can file a civil suit seeking permanent injunction from the civil court to prevent the bank from attachment of the secured assets obtaining an order from the Court. Often, a quick counselling session with a certified credit counsellor can help you to discover your options and choose the right path forward to settle the dues lying unpaid against the OD facility with the Bank.