Your provident fund account cannot be attached by bank
2) bank can as per court orders attach your property
3) notice would be issued to you
4) bank can negotiate after filing case before DRT
Bank loan outstanding
I took a home loan of 20lac from idbi bank but unable to pay back loan.bank auctioned property in 20lacs in March 2018.i already paid 9 lacs extrain 5 years as emi against principal amount to bank.but bank is still asking for 6.5lacs more as interest and other charges.bank sent my case to DRT.no notice received from DRT yet. Can DRT attach my mutual funds,pf,pension,elss(lock in tax saving mutual fund) to recover this amount without notice?If i am a coborrower of another home loan can DRT attach that property also if it is not in my name? Will DRT inform me before attaching my assets,if so then how? Does bank negotiate after sending to DRT? I have sent letter showing willingness for OTS.on phone bank agreed to reduce but in reply of my letter they have denied to reduce the amount from 6.5 lakhs. Please guide what I should do next?
Asked 7 years ago in Property Law
Religion: Hindu
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11 Answers
1. Yes, if the money is still due from you even after selling the property on auction, DRT can pass an order for attachment of movable assets for recovery of balance loan amount.
2. Ask from the bank the actual amount payable by you. There must be some basis to this amount. If not then you can defend yourself accordingly in the DRT.
First get an injunction order/stay for further proceedings by the Bank from the High Court. Then you can pay the amount and come to negotiations with the Bank.
Hello,
DRT will send you a notice, no action can be taken by the court before hearing you as the same will be against the principles of natural justice. Yes you may appear before DRT after notice and seek permission for Settelment.
Regards
Hi,
You are supposed to get notice from DRT, otherwise be vigilant and be present in DRT on day of case hearing and present your facts. The banks may be asked by DRT for OTS.
Hi
1) First and foremost , bank has auctioned your property and now the claim is for Rs6,50,000-/-
2) Under law, DRT job is done once the property is auctioned and sale proceeds are received by the bank.
3) In your case, the remainder of monies is Rs6,50,000-/- and Bank has to approach Civil courts for recovery of monies as Jurisdiction of DRT will be applicable only if the remainder amount exceeds Rs10,00,000-/-
4) Also banks cannot attach monies in Provident fund monies or pension monies in lieu of outstanding amount.
5) In the event of you being a co-borrower, the bank has a right to recover money by attaching the property, subject to the property being in your name. If the property is not in your name, the liability of co-borrower is akin to that of a guarantor only.
6) In all probability, since the property has already been auctioned, banks might be attempting to invoke your personal guarantee(as proceeds of sale of property was not communserate with outstanding) and that personal guarantee can only be claimed through CIVIL Court and not DRT.
7) You have plenty of defences in your side such as
a) EMI of Rs9LAKHS Paid.
b) Sale value of property through auction was intentionally lower than estimated value (banks have to get valuations from 3 engineers and also share with you the same prior to putting the property for auction etc),
c) Number of bidders in auction was not as per SARFESAI rules etc
8) If you intend to stall the proceedings, file an appeal in DRAT (Debt recovery appellate tribunal) against the bank
Hope this information is useful
Dear Client,
No recovery will proceed through suit.
Bank will file recovery suit against you and you will get notice. Will file reply and than case will proceed and than order will delivered which will take years, if no recovery from funds than bank will apply for attachment of your properties. Pension, PF cannot be attached. Mutual funds can be attach.
OTS always possible while pending of suit.
Dear,
DRT can not attach your pf account.
DRT attach your property in your name.
You will received notice, and in front of DRT you are allowed to present
your things.
Yes DRT inform you
Yes you both are free to negotiate any time.
1. You had availed loan of Rs.20 lakhs and it accrued interest which the bank could not recover by auctioning your mortgaged property as per SARFAESI Act,2002.
2. Now the Bank has filed Original Application (O.A.) before the DRT for which you should get notice and shall be allowed to contest the said application.
3. Finally, if you do not contest the case, the DRT will pass ex-parte order and the Recovery Officer will recover the balance amount for the Bank by auctioning the properties standing in your name.
4. Such case will take years but you can sell of the properties standing in your name if you have not yer got any order from DRT restraining you in selling of your properties before the O.A. is disposed of.
The PF or pension or mutual funds cannot be attached for the purpose of repayment of home loan by DRT.
The house property mortgaged for another home loan cannot be attached to this.
The bank will send notice under sarfaesi act and then if the re is no response or compliance then they may take possession of property and bring it to auction.
If the bank is not willing to reduce the loan repayment amount then you dont have any option than to pay it in full and retrieve the property.
Dear Sir,
Pension and gratuity cannot be attached according to Supreme Court judgment please refer the following judgment.
Pension, gratuity cannot be attached for debt recovery: SC
NEW DELHI: The Supreme Court has held that retirement benefits like pension and gratuity cannot be attached by authorities for recovery of dues.
The apex court passed the ruling while quashing a Rajasthan High Court ruling which had ordered attachment of the retirement benefits of Radhey Shyam Gupta, who was a guarantor in a mortgage deal.
The High Court had ordered attachment of Gupta's retirement benefit deposited in the Punjab National Bank (PNB) as principal debtor Durga Prasad, for whom he stood guarantor for a loan of Rs 83,000, defaulted in the repayment of the loan taken for a vehicle. The vehicle mortgaged by Prasad was also untraceable.
The High Court ordered the attachment of retirement benefits after recording the submission of the bank that the matador van of Prasad which was mortgaged was not traceable. It also ordered Gupta to produce the matador vehicle so that it could be auctioned and the loan amount recovered.
Aggrieved by the ruling, Gupta filed a special leave petition in the apex court.
The apex court agreed with the submission of Gupta's counsel Shobha that proviso (g) of Section 60(1) of the civil procedure code precluded the authorities from attaching retirement benefits of a person.
