• What is dispute case all about? Due to improper repayment I have got a notice against my property?

My father has taken a loan during 2003-04 of amount 3.5L from a cooperative society in bhubaneswar and could repay 70000 approx, due to financial crisis he couldn't continue and the tenure was of 10 years. Now the amount to be re-payed is about 12.5L with interest compounded.As my father is physically ill,i am willing to repay but only principal plus some interest not the compounded. I have been paying some so called LIC amount which is yearly 3600 as they said. I have given several attempts going for OTS, even I have written letter which the manager agreed to help me but he said I have to pay 7.5L at least, buy at the end there is no result.There is high chances of looting the amount as they say that would not give my"kabala" ,home papers back even of I repay the while amount and they ask money for there expense as well. 

Now the dispute case has started I just want to know how can I resolve this and save my home from being captured by them.

It would be a great help if I could get a permanent solution legally.
Asked 4 years ago in Property Law
Religion: Hindu

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13 Answers

1. Well,for your information this loan has become bad debt as it is time barred and it can not be legally recoverable loan anymore.

2.Since no action was taken during the 3 years since the amount last fallen due after so many years it can not be claimed in court anymore.

3. however if you still wish to repay then you can do so at your choice though it being an unsecured loan his proeprty would not be attached as well to recover the loan.

4.If your house was not kept as mortgage then it cannot be put to attachment and sale to recover the loan.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Hello sir , either you can file a case at DRT ( debt recovery tribunal ) or at permanent Lok adalat , to arrive at a compromise and achieve a suitable solution

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

The only best solution is to get agreement with the LIC on final payment amount on the property.

If the amount agreed is closed to 7.5 lacs just try to negotiate if possible else the Corporation will declare the possession of the property.

To meet the financial crisis you may apply for a house loan on the same property. Discuss with home loan from HDFC and you may get a solution to this problem.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Even in that case you may ask for the repair or extension loan from HK companies to save your house.

These LAP are coming on the usual interest close to HK interest.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

1) request society to give you detailed statement of account

2) request society to agree for OTS of Rs 8 lakhswherein you repay the principal amount

3) if society refuses to agree for OTS they would take legal proceedings to rec over principal with interest

4) if your father fails to pay society can get decree for outsnding amount and in execution of decree can sell the property to re over the loan amount

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0

If loan is not repaid society would file suit and obtain decree for loan amount

Property can be sold to recover the outstanding dues

It is in your interest to repay loan amount as property is valued at Rs 60lakhs whereas loan amount is Rs 12lakhs

Ajay Sethi
Advocate, Mumbai
87976 Answers
6207 Consultations

5.0 on 5.0

Dear Sir,

Now the procedure is very easy for co-operative banks to get dispute registered and get award even exparte and they will attach your house and sell the same. Before that happen you please approach higher ups and have some influence of co-operative ministry of your State and get settle loan.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

1. Your query is not clear. Is it the 'kabala' for your house or your father's house? Is it a secured loan taken by your father by depositing the title deed of his property creating mortgage thereupon?

2. It appears that your father had taken loan from the said society on agreed terms by mortgaging his property allowing the said mortgagee to sell of the said mortgaged property to recover the dues in case he failed to repay his loan with interest as agreed by him.

2. The Society is with in its right to file an application for enforcing its mortgagee right on the said property to sell of the same to recover the outstanding lying in your father's loan account.

3. If the Society has agreed to settle the dues as OTS by collecting Rs.7.5 lakhs in place of Rs.12.50 lahs, then grab the offer immediately and settle the issue.

4. Get the said OTS proposal accepted in writing by the society and handover the entire settled amount while collecting the original title deed of the mortgaged property and 'no-due' certificate across the table.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

1. The loan was taken by your self or your father?

2. Was the original title deed of the property been deposited with the Society to create mortgage on it?

3. If not then it is an unsecured loan for which the Society shall have to file a Money Suit against you and get attachment order on your properties for selling the same to realise the outstanding.

4. However, such Money Suit may take 5 to 15 years to be disposed of.

Krishna Kishore Ganguly
Advocate, Kolkata
26614 Answers
726 Consultations

5.0 on 5.0

See, your home papers are with the co-operative society. You have not repaid the loan. You have not mentioned what action the Society has taken so far. You said you got a notice against your property. From where you received the notice, Society, Court or Arbitrator, Tribunal, etc.

If the notice is from society what is mentioned in the notice and if the notice is from court what is mentioned in the notice. Without getting complete information no proper opinion can be framed.

Contact a local lawyer dealing with the cases of cooperative society and he will guide you property. It is always better if the case is settled in the court with the condition that the permission to sell the house be given to you and after payment of loan, the remaining sum is returned to you.

Dalip Singh
Advocate, New Delhi
1040 Answers
36 Consultations

5.0 on 5.0

If the manager is not cooperating or not acceding to the fervent requests made then you can escalate the matter to the top management with a written representation along with your proposed settlement plan

Your father should convincingly express his difficulties and hardships he is facing in this regard.

It's the discretion of the management to accept or refuse your proposal.

Alternately you can challenge the same in the court of law on merits.

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

If it's an unsecured loan then they cannot take possession of the property without following procedures of due process of law

You may file a caveat petition and also an injunction suit in advance

T Kalaiselvan
Advocate, Vellore
78133 Answers
1543 Consultations

5.0 on 5.0

The opposite party has filed dispute against your father' loan for recovery of the same. You need to contest the same. Try to resolve it amicable with society if you are willing to pay. You can propose them to pay the principal amount and waive the interest. If they don't agree you need to contest teh case in court.

Prashant Nayak
Advocate, Mumbai
27291 Answers
88 Consultations

4.4 on 5.0

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