You can reply to the notice through an advocate. You can challenge the same before Dy. Registrar once you get the notice from Dy Registrar in this matter.
Recovery Notice
I was operating cc account with a limit of Rs. 2 Lakh from co-operative bank against deposit of 80 thousand kept as lien. Loan was provided under hypothication of Debtors and stock. Interest on loan was paid regularly for almost 20 years. In 2013-14 bank suspended all activities under RBI guidlines and is now about to merge with other bank or close down for ever.Now I and my wife have received recovery notice under section 107 of M.C.S.Act 1960 to pay around 5.6 lakhs calculated at compound rate of interest and after deduction of Deposit amount(without interest accrued).Meanwhile some of the debtors have closed their operations and amount due from them can not be recovered. My office building is demolished and I am almost retired being 68 years. My wife who was guarantor has no regular income.
Asked 6 years ago in Civil Law
8 Answers
You must reply to recover notice
2) dispute your liability to pay Rs 5.60 lakhs
3) the liability of principal debtor is co extensive with that of guarantor
4) amicable settlement is best option
You and your wife can reply the notice, since you have regularly paid the interest dispute the claimed amount by them.
Also go and talk to bank and ask them for a settlement amount if they are ready to settle on less amount without interest pay and take receipt of same.
when did you stop the interest payment?
was your account declared NPA?
As the bank has charged compound interest it means that the principal or installment thereof had become due and payable
also it is not right for the bank to give adjustment for your deposit without considering the accrued deposit
papers need to be seen here for more clarity
Dear Client,
Society is winding up, avoid the notice.
Hello,
please share the copy of the said notice received so that appropriate advise can be rendered
regards
You have to reply the said legal notice though your advocate after briefing him the facts of the case. If there is any way out, he will let you know there and then and if there is any lacuna, he will also inform you.
Since you have received notice to repay and the case is filed against you before concerned court, you may have to appear before the court and defend your interests accordingly.
You cannot claim exemption that the bank has closed down due to merger as reason for non payment of your loan amount, because you would have been notified about the dues that are to be paid by you and to remit the same to the merged bank, whereas you had remained silent over the issue hence you are facing problems now.
Engage the services of an advocate and proceed on the advise received.
