Hi, you have to challenge the possession notice in the DRT and seek time to repay the amount. Apart from this you have no other options.
SARFAESI act when one guarantor died
My husband took bank OD facility for his proprietorship firm My husband & I were the Guarantor He died 2yrs back and the firm is closed Since 2yrs I have stopped paying intrest to bank I received possession notice for my house which has a collateral U/S 13(4) sarfaesi act in August 2016. In May 17 bank visited my house to tell I will get a legal notice soon if i dont pay the due. I dont have the money rigth now to pay the loan. What are my options ?
Asked 8 years ago in Property Law
Religion: Hindu
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6 Answers
Hi
You will get Summons from court once the bank reaches to the Recovery tribunal and you will have to appear before the tribunal with whatever defense available.
The proceedings in DRT is faster comparing to civil courts.
During this period or before the proceedings make a settlement with bank to avoid an attachment o f the house.
Once the order is passed for recovery the bank will proceed with the execution proceedings, from the date of summons to the execution proceedings you will get some time to pay.
if the payments are not done within the time the bank can attach and auction the collateral property, the house.
1) make an offer for one time settlement to bank
2) offer to pay the money within period of 2 years in instalments as you don't have money
3) in the alternative let the house be auctioned to clear the bank dues
1. if you wish to pay the loan amount buy have no sufficient means to pay then you should approach the DRT for extension of period of loan.
2. you should approach to stop the penal interest and not to declare it NPA. when interest is not being paid for long time then penal interest is levied by the bank. this penal interest may increase your loan and liability many fold.
The bank will take physical possession of the property under collateral security of the borrower and if the same is not sufficient to repay the loan and its accrued interest, the properties of guarantor also shall be brought into public auction.
