Hi Sir/Madam, • I have a property mortgaged loan on my Flat (which is under construction & 85% of the work has been completed), and yet to get completed, balance of 15% of the work is pending as its huge project of 700 plus units are there in the project. • My flat’s project work has been stopped since from 2 years, and my builder has entered into an agreement with new funder and the work will get started in 2 months, post-work get starts, I can able to sell it and clear this loan (with the consent of my creditor). • This project case is in NCLAT and the final hearing is dated on 20th June 2022, and my builder will be submitting all the evidences regarding his new funder and take permission to start the work. • My question is, I can’t pay EMI’s till the work gets started, Due to multiple waves of COVID19 my business is completely down and I don’t have any source of income to pay the monthly EMI, I spoke to my creditor last year and they gave me a holiday period for 1 year, now my EMI is restarted, but still my flats work is not yet started. The project has been stalled since from 2 years. My Builder said definitely the work will get restarted in 2-3 months. But again, it depends on the NCLAT. • My creditor won’t give me further time and I don’t have any other source to pay my EMI's & even the creditor is pressurizing very much. • My loan amount with the creditor is Rs 25 lakhs. I am ready to give complete legal rights / handover to my creditor, let him sell it (after the project work starts) and deduct his loan amount and let him pay me the balance amount, as the flat will cost around Rs 80 Lakhs. • Somehow I have to come out from this harassment and pressure from my creditor as I am having some health issues like High BP and diabetes and I am nearing to 60 years of age. • Please go through my question completely & advise me where can I seek the legal help in this regard like DRT, Civil Court &, etc., and place the request application in this regard.
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You can make an offer of one time settlement with creditor
2) it can provide that no EMI would be payable till project work starts
3) creditor would be at liberty to sell the under construction flat recover loan amount with interest and pay the balance sale proceeds to you
4) the sale to be completed with period of one year
Find out a prospective buyer for your property, who will be ready to takeover the loan and enter into an Assignment Deed.
- As per the RBI, the bank should give proper time and offers for the settlement of loan amount., on the ground of health and sudden loss
- Further if the account does not reflect credits into the account, 90 days preceding the date of balance sheet of the firm. Temporary deficiencies like late/ non-submission of stock statements or balance outstanding exceeding the drawing power, non-renewal of limits should not get categorized as NPA.
- And further, if the borrower does not pay three installments continuously after 90 days but up to 12 months the account becomes sub-standard and NPA, and further Section 13 (2) empowers the Bank/ FI to serve a notice to the borrower for taking possession of the assets held as security for the money lent by it.
- But there is precursor to this action: the Bank/FI shall serve notice to the borrower to discharge his full liabilities within 60 days from the date of notice that should also detail out the legal consequences and penal provisions.
- Hence by the two directions under the Act, the borrower should be getting at least 17 months’ time before the Bank could proceed against the defaulter.
- You can send a notice after mentioning your problems for the payment , and can seek further time for the payment of arrears .
- Further, for the delay in possession by the builder , you can claim 10% interest from him , and also can get entire amount after filing a compliant before the Forum.
If you have availed home loan from a Bank or a NBFC and have defaulted in the EMI repayment of loan amount, then the creditor/lender may declare the same as NPA and may invoke the provisions of SARFAESI Act to recover the loan amount with interest.
Therefore you can take action of defending your interest at that time only and not before that.
You can then approach DRT with an application to stall the proceedings that may be initiated by the lender to recover or bring the property into auction sale.
Alternately you can talk to the lender about this and have a word of assurance on the terms that you agree to repay the loan or to give away the property to them on the rate you offer.
If the lender agrees for the settlement agreement with the mutually agreed terms you may reduce the same to writing and proceed further as per the terms.
You can come out the same if you can repay the same
Yes but ni agency will give you extension of the time except the creditor himself in this case
Dear Client,
As per the facts which have been provided, you can go for one time settlement with the creditor.
Thank You.
