Right to plenty notice

1) A default does not strip you of your rights or make you a criminal. Banks have to follow process and give you time to repay dues before repossessing your assets to realise the arrears.

2) Typically, banks initiate such proceedings under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests (Sarfaesi) Act. If the borrower's account is classified as a non-performing asset (NPA), where repayment is overdue by 90 days, the lender has to first issue a 60-day notice to the defaulter.

3) "If the borrower fails to repay within the notice period, the bank can go ahead with sale of assets. However, in order to sell, the bank has to serve another 30-day public notice mentioning details of the sale,

1) when you made payment did you obtain letter from bank that x amount has been paid in full and final settlment of loan . if so bank cannot demand Rs 1,70,000 from you

2)if you have not done so ask bank to give a break up of Rs 1,70,000 demanded by bank

3)since you have already repaid the loan better pay the said amount and get back your original documents

The demand for Rs.1,70000/- alone for notice and advocate charges is atrocious and without any basis at all.

So refuse to pay such demand.

Since you are defaulter in repaying the loan you will have to repay the loan anyway with additional charge of penalty and interest but this amount is unjustified in all circumstances.

So send them a legal notice repay the loan amount except this huge amount towards notice and advocate's charges.

if they refuse to modify this figure then you can file case beofre the consumer forum for deficiency of service and unfair trade practice.

1. Since you have stated that you had 'settled the total amount with interest' did you obtain an acknowledgment from the bank wherein it acknowledges the full and final settlement? If the answer to this question is in affirmative then bank cannot demand any more amount, and consequently cannot refuse to deliver the documents. You are free to file a suit for mandatory injunction against the bank to compel it through a decree of the civil court to deliver the documents to you. Furthermore, the refusal of the bank to deliver the documents even after acknowledging the full and final settlement is tantamount to criminal breach of trust within the sweep of Section 406 IPC, for which you can file a criminal case against the bank.

2. If, however, you did not obtain the acknowledgment from the bank then serve it a lawyer's notice to return the documents and then depending on the reply of the bank you may chart out your further legal recourse.

Request for waiver of these charges, by moving a request in writing and pray for release of your documents.

If your request is paid no heed, approach the High Court by way of filing a writ of mandamus.

If you had given any letter of offer to the bank for OTS specifying the exact amount to be paid on or before a deadline in full quits and the bank had accepted your offer in writing, the bank cannot legally demand any more sum from you nor can it withhold your documents. In the absence of any such agreement, the bank will be within its rights to recover the legal expenses from you.

Send them legal notice with a warning to sue them

Is there any provision which governs such fees as part of the contract between you and the bank?

If yes, then the entire contract has to be examined in detail before answering this question.

If no, then, speak to the manager and find out the rationale and under what provisions the bank is demanding the fees? Preferably by writing. Even a legal notice shall help.

Then, based on the response, further course of action shall be advised.

Dear Client,

Your liability rest up to OD and interest changeable + penalty, no other charges. If bank is refusing to deliver documents, file suit for recovery of documents.

Issue Legal Notice to initiate legal action if failure to return documents.

Send a legal notice to the bank through the local lawyer to release the documents failing which you have not any remedy except to knock the door of consumer forum for getting the needful done at your costs and consequences.

On receipt of notice, they will come to settlement. If not, move the consumer forum for release of documents and seek compensation for mental harassment and agony and litigation also.

You can ask them to give then same in writing along with the breakup details.

Once you get the same in writing, you may challenge the same by filing a complaint with the consumer forum for the reasons of deficiency of service.

They have not included this advocate fee and incidentals in their demand notice hence this claim now made is unjustified and a matter of unnecessary harassment.

Hence you can ask the forum to direct them to return your title documents and also to pay compensation for your mental agony caused due to their irresponsible act.

1. IF the bank HAD settled the outstanding dues amount as "Full & Final payment" , THEN the bank now cannot demand any more payment, under any guise or pretext, whatsoever.

2. Serve legal notice to Bank, consequent to which make written complaint to RBI and follow-up with court cases.

Keep Smiling .... Hemant Agarwal