In reply to notice mention that all EMI are paid on time
2) there is no default committed by you and accou t is not irregular as alleged by bank
3) in case bank seek to auction gold ornaments CO tact a lawyer and obtain stay of auction
Bank is sending notice regarding auction our gold ornaments in a gold loan account
We have three loan account with SBI in Himachal. Loan one is a taxi loan ( it's irregular by 3 EMI and civil case is going on) but every month we are paying money in this ac and by nov 2020 it will close. Loan two is a taxi loan ( it's irregular by 3 EMI and civil case is going on) but every month we are paying money in this ac and by nov 2020 it will close. Loan three is a gold loan it's from different SBI branch( it's not irregular and all emi are made on time) Now the problem is that the SBI branch is sending us notice in gold loan account that our account is irregular and pls regulaise it by paying off the completed amount of Rs 89000 and close it, bank is giving pressure to us that u pls pay and close this account, else they will auction the gold ornaments. Our only concern is that why we should close it as this account every month emi is goin in this case. We wrote to bank also that this account is operated fine why they are doing this to us ..but bank people not ready to this. We have hired a advocate also who is fighting our two taxi cases but he also saying that in gold account he can't fo any thing . Pls advise me what to do as i was thinking off sending a legal notice to bank or can i take a stay order to stop auction gold ornaments.
Asked 4 years ago in Civil Law
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I also told my advocate earlier to take a stay order but my advocate told that in gold loan case stay order is difficult to take as the judge will say that there two loan account are irregular and a civil case is under hearing is in those account so why we should give stay order to bank to not sell the ornaments. Actually this is a small town so my lawer was saying not to fight with the big fish (SBI) and to just talk with bank manager of gold loan account to give some time, but I talked with them and they are not ready. In fact they are saying that our two taxi account are irregular so according to RBI policy our rest loan account are also into NPA (we are paying all emi on time for this account) and hence they will sell our ornaments and recover there gold loan balance 89000 and return rest money to us. In this case pls advise me what to do as managers are getting personal into this and I really really want them not to auction and pay the EMI very month as it's going on. Pls advice legal help which i can opt for..
Asked 4 years ago
1) file suit seek stay of auction of gold ornaments
2) take the plea that all installments are paid in time of golf loan
3) that in respect of other loan accounts legal proceedings are pending in court
You first issue a reply notice to their legal notice.
After that also if the bank authorities turn hostile to your requests, you may approach court of law for getting an injunction order against the bank restraining them from proceeding with the auction of the gold held in their deposit till such time the suit is disposed.
You can change the lawyer and fight this menace legally.
The bank cannot take an action against the gold loan if the repayment on this is regular without any default.
There is no reason for the bank authorities to act this way which can be considered as an illegal act.
1. If one loan account becomes NPA, then the lending Bank can enforce security interest on the property which has been mortgaged by the same person in some other loan account with the same Bank which is a regular account.
2. Pay off the outstanding amount in the two defaulted loan accounts to get rid of the problem. You can try to make settlement for an amount lower than the outstanding amount also with the Bank.
1. Your Advocate has rightly suggested you that if one account becomes NPA then other regular accounts kept in the same Bank also will be considered as NPA.
2. SARFAESI Act,2002 is a Draconian Act and no civil court has any jurisdiction in try SARFAESI matters.
3. High Court also will advise you to approach the DRT.
4. Settle the matter with the Bank amicably or pay of the dues before the Bank sells off the gold with due process of law.
Thanks everyone for the valuable guidance... For our two loan account the case is going on and has been filed by the bank branch manager just 3 months back only. in fact we are paying some amount in these two accounts every month so that by the time these two cases are disposed off we would have paidoff our most of the loan amount and we have told our advocate to just extend the cases month by month so that we get time to pay the pending EMI and bank doesn't harrash us and by NOv 2020 loan will finish. But as now the branch Manager of gold loan account is giving us pressure to pay off remaining Rs 89000 and close this account (our ornaments are valued at Rs 175000) , we thaught that this account is regularly paid every month and no problem will occur. My only concern is that we don't want to get the gold ornaments auctioned and we just want to pay off with monthly EMI, so i was looking for a legal advice. The gold loan branch has sent us two notice first was one month bank in that they mentioned that our concern gold account is irregular and so they are giving us fifteen days notice to pay off total outstanding and close it.IN response to that we telephonic told them that the concerned account is regular and we are paying every month and they may check the statement also but they said as two accounts of other SBI branch are irregular so this one also consider irregular. we wrote an email to tell the manager and we are paying every month so let it be.But after 1 month today we again got second notice and the bank said to pay entire by 3 jan or they will auction the ornaments. In both the notice bank manager is not written that because of other two taxi loan account they are asking us to close this loan account , they are just writing that our this gold account is irregular and we have to close it.
Asked 4 years ago
You should take legal proceedings and seek stay of auction of gold ornaments
2) rely upon correspondence exchanged with bank wherein they said auction would be done after 3rd January
3) enclose emails exchanged with bank denying account is iregular
1. It is wrong to state that the gold loan account is irregular.
2. However, the Bank will now send you the Demand Notice u/s13(2) of DARFAESI act,2002 and start SARFAESIn proceeding against you.
3. It will be prudent on your part to negotiate with the Bank and get those taxi loan account regular to save your gold ornaments.
4. You can also file a SARFAESI Application (S.A.) before the DRT after receiving the possession or eauction notice from the Bank but the litigation expense will overshadow your dues.
You need to reply to the notice received by thr bank and seek stay on the sale or auction procedures by bank
Since you have received the notice from bank to pay the entire loan amount by the stipulated time, and it is an act violating the loan agreement or the conditions therein, you my have to give a fitting reply notice through your advocate objecting to their notice and can mention that they they are threatening by indulging in illegal activities hence they will be liable for the legal consequences if you drag them to the court of law seeking justice. You can endorse a copy of this reply to their higher office also so that the manager of this bank would be hesitant to initiate any such illegal action of bringing the ornaments to auction sale.
You can plan to file an injunction suit against the bank for this based on his notice and other documentary evidences in your support.
You dont involve your other two loans in the injunction suit which are not necessary and irrelevant to this subject.
1. Dear I would suggest you to close the gold loan account by paying complete amount and take loan from some other bank if you want to keep the gold.
2. It would serve two purposes one that your loan will be closed from SBI and other is that you will save yourself from another legal battle with bank.
If a gold loan account is declared as non performing asset then bank serves a notice to the borrower to repay loan failing which the pledged gold ornaments are liable to be sold by auction.
Please provide more details. Has the auction been ordered by a court or drt? If yes then you can move to the court file an application for stay.
In gold loan case - bank has sent a notice on its on letter head and it's been mentioned that the account is irregular and so we have time till 3 jan to pay off complete and close it. Else 4 Jan they will auction take place on 4 Jan. All this is sent on bank leeter head signed by Manager. In this case it's not send by court or any advocate, it's just the bank who has send us. And remember the account is not irregular or NPA in gold loan case which bank people also egry
Asked 4 years ago
You must reply to legal notice denying that account is irregular
cintact a local lawyer and seek stay of auction proceedings
You reply to the notice and of you think that bank will take action apply for stay in the said matter. Or else wait till bank serves you court summon and then go for stay
It appears that you have not understood the seriousness of the notice issued by the bank in this regard.
The bank authorities will first initiate action as per the instructions contained in their notice to you by bringing the gold ornaments to auction sale.
They will not bother about the legality in it.
It is you who has to run from pillar to post after that to retrieve your property.
You can no doubt file plenty of cases agaisnt the bank for cheating, deficient in service, manipulation of records, taking action on false and fabricated information etc, through criminal law, civil law and even consumer law.
But these are all only after the bank has completed their illegal acts as was warned by their notice.
Therefore you may better issue a reply notice immediately and simultaneously file an injunction suit to restrain the bank from proceeding with their proposed action to auction sell the gold ornaments, you can rely on all the documentary evidences in your support to prove that you were never irregular in loan repayment nor there was any single incident that you defaulted the loan repayment.
If you keep asking such questions without taking any action as suggested, you will be stranded and would be subjected to all types of illegal activities that the bank has warned you through their notice.
1. If one loan account becomes NPA, then the Bank can enforce security rights on the properties mortgaged in connection with other loan account.
2. Bank Manager/Authorised Officer is required to send the recall notice or Demand notice.
your account is classified as a NPA if the repayment is overdue by 90 days. In such cases, bank has to first issue a 60-day notice to the defaulter.
Hi thanks for the help and support. Today I went to bank where gold loan account is active. Our net outstanding as per today was Rs 90000 And gold ornaments value is Rs 180000 We took cash with us so that we may pay the outstanding amount and clear it and close it. In the letter which we received from bank it's said pay this amount and will close the account, but problem happened when they said that they will not return back our gold and they said that they senior have told them to auction the gold and adjust the money with our taxi loan account with another Branch. We also told them that our taxi loans were finance under Gredit guarantee fund trust of India and under they scheme govt takes the loan amount guarantee and bank can't take any collacter or the borrowers or any third party guarantee.under this scheme bank has to finance without any security , so we asked how could a branch can keep our gold. Gold loan branch people also know same but said they are helpless as another Branch head as asked them not to realise gold and auction it. So we didn't paid our pending amount and came back. Now pls advice our legal options for avoid the auction of gold as it's total going unfair practice from bank side. First we received the closer letter for gold loan and now when we ready to pay then the branch saying no option but they have to auction . I asked my advocate and he told me to meet him tomorrow. Also tell us what is the process of taking a stay order and does civil cort in our tehsil (tehsil Palampur) Distt Kangra, Himachal. Can issue stay order. Our we need to file a case with court against SBI branch of this bank. Also if i want to file a case against SBI top management how can i do that as all these manager are one now and they just blame another manager .
Asked 4 years ago
1) file suit seek stay order against auction of gold ornaments
2) take the plea that you are willing to deposit loan Amount in court and bank be directed to return your gold ornaments on repayment of loan amount
1. In all my earlier posts I have informed you that if there are multiple loans standing in your name and if one such loan becomes NPA, then the Bank can recover the outstanding NPA amount by selling the property mortgaged in connection with other loan account even if the said loan account is regular.
2. The bank has not kept any security for the taxi loan provided to you. They are realising the unpaid amount of the taxi loans by selling the property mortgaged by you while taking some other loan.
3. It is a SARFAESI matter and no civil court will have jurisdiction to try SARFAESI matters which are to be decided by the Debt Recovery tribunal (DRT).
You have to file the complaint at the office of the ombudsman under whose jurisdiction your bank branch is located.
You should have got the same reason for not returning the gold jewels in writing from the bank authorities.
If he refused to give the same in writing then you can immediately approach court with a suit for mandatory injunction seeking return of gold jewels after accepting the balance amount which is outstanding in your gold loan account with interest.
And also file an application for ad-interim injunction on the same lines restraining the bank from selling the gold jewels in an auction sale till the disposal of the main suit.
You have to follow it up immediately or else the bank will rush up to auction the said golden ornaments without giving you an opportunity because their deadline is approaching.
You can file the case as aforesaid you can take all the available effective remedies in this case to secure yourself