• Darkhast by Scheduled Bank for recovery of NPA loan.

Due to worldwide recession, my loan account in a scheduled bank became NPA in 1999. The bank obtained recovery order from court in 2001 which was never implemented. In 2002 bank approached court again for loan recovery implementation after which bank,s advocate and bank officials failed to attend 13 dates successively up to 2016. 
Myself and bank were asked to attend Lok-Adalat on a date. I attended that date in 2016 along with my advocate, but the bank ,s advocate and bank officials were absent again.
Hon Court passed order that the decree holder is not interested in this proceeding. therefore the DARKHAST is dismissed in default for want of prosecution.
My question now to all learned advocates is can the bank approach the court again for loan recovery ?
Can bank recover amount from me or loan will be written off ?
Asked 4 years ago in Civil Law

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17 Answers

1) it darkhast is dismissed for want of prosecution bank can take out application for restoration

2)restoration application should be filed within period of 30 days

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

The bank will approach the court for restoration of the previous darkhast the new execution is time barred.

The bank will try to restore the old recovery proceeding it can be recovered from.you in case there case is restored if not restored they cannot proceed against you.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

bank can make an application to recall the dismissal order

for that it will have to give valid and sufficient cause for not remaining present when the case was called out

if the bank takes such an action then you will have a chance to oppose and reply to the bank's recall application

if the court allows the recall application then the matter will be revived and the recovering proceedings through Lok Adalat by way of settlement or mediation between disputing parties will begin again

so it depends what next steps the bank takes to set aside the dismissal order

if you want to informed about such action in advance then you can file caveat in the lok adalat and also in HC (in case the bank moves the HC by way of writ petition for setting aside the dismissal order)

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

bank will not give you no dues certificate as you have failed to repay the loan

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

bank will not give no dues certificate as you have failed to repay loan and decree was passed against you

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

1. They can file an application for recall of the order but they will have to explain the delay in filing such applications.

2. Without getting the order recalled bank can not recover the account

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Dear,

Yes bank has right to file restoration application in court.

But i think in your case the time limit to file application is passed.

If they already filed in time limit then court hear both the parties and

if court is satisfied with reasons of bank then you have to follow court order.

Tarun Agarwal
Advocate, Jaipur
769 Answers
3 Consultations

4.9 on 5.0

The bank will not give NOC as the bank has not waived off your loan

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

If you however have this knowledge that the bank has waived your loan and therefore they were not attending the court proceedings then you can get a NOC.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

The bank will not grant no dues at this stage.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Hi,

The bank has right to recover loan provided limitation is not over.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Bank have to file applcaiton to set aside dismissal for default order than case will proceed.

NO dues cannot be available to till loan not cleared.

recovery limitation 3 years. than no recovery.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

The bank can file Restoration application to restore the execution period, if the application for restoration is allowed then you would will happen to still pay the loan. If not, you do not have to pay anything to them.

This application should be filed within 30 days of dismissal.

Siddharth Jain
Advocate, New Delhi
5925 Answers
101 Consultations

5.0 on 5.0

The bank would not issue no objection certificate as recovery in your case could not be done.

Siddharth Jain
Advocate, New Delhi
5925 Answers
101 Consultations

5.0 on 5.0

Bank will only issue no objection certificate after all the dues have been duly paid by the borrower and not otherwise.

Siddharth Jain
Advocate, New Delhi
5925 Answers
101 Consultations

5.0 on 5.0

My question now to all learned advocates is can the bank approach the court again for loan recovery ?

Can bank recover amount from me or loan will be written off ?

The limitation for filing an execution petition to execute the decree is 12 years

If that period is expired then the bank may not be able to recover.

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

Can I obtain No Dues certificate from bank ?

When you owe money to bank how can you get no due certificate from bank?

The bank cannot give any such certificate

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

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