declare your self an insolvent
2) you dont have any money to repay the loan
3) machineries covered under the loan have been taken away by the money lenders
4) you have no option but to take insolvency proceedings to declare your self an insolvent
Lost the assets covered under CGTMSE scheme
I have started a CNC machine shop after taking loan for amount 33lakhs under cgtmse scheme from Bank. Due to the unhealthy market conditions I lost the business and I couldn't pay back to the bank. Added to that I took unsecured loan from the money lenders for higher rate of interest and later since I couldn't repay them, they took away my machineries. Now iam not able to repay the bank and even the machineries covered under the loan. Bank is threatening me to pay back, otherwise they will file a suit. What should I do?
Asked 8 years ago in Business Law
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3 Answers
you can file an application before the DRT for settlement of loan, stopping of penal interest on the loan and payment of loan in extended installment. if DRT refuses the you can file a writ before the high court for same relief.
supreme court has held that bank cannot recover loan by threatening. if it gives threats you can approach the high court directly under section 482 crpc for preventing any threats.
The bank may file a recovery suit against the repayment of the loan advanced to you.
If there any properties on your name besides the collateral securities furnished they may try to seize the same by first filing an application for attachment of the said properties before judgment.
You can have an audience with the bank manager and request for restructuring the loan and for easy terms for repayment.
If there is no cooperation from bank you may wait for the bank to initiate necessary recovery proceedings.
The court case may run for years by which you can gather funds to repay the same.
