A few years ago we had taken a loan from UCO bank, along with 3 other people. In total there were 4 properties mortgaged for a principal of 10cr INR. All borrowers on this loan have defaulted. Our share of the loan is 1.5cr and the current market value of our mortgaged property is 2.4cr. The bank wants us to pay 3cr to release our property. Is it possible to get a court order to pay only our share of the loan (1.5cr) ?
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1. The liability of the co-borrowers are joint and several.
2. So you can file an application u/s 17 of the SARFAESI Act and seek injunction.
3.Before that you can send the bank a written representation to the bank about your willingness to sell your share .
On what basis the bank has computed the repayable amount to be 3 cr? Is the amount arrived at by adding the interest to the principal amount borrowed from the bank? Has a legal notice been issued by the bank?
You should file a case before DRT bank cannot demand beyond the market value of property because bank can auction this property. Bank is bound to initiate conversation with defaulter for settlement of loan before auction. Bank cannot demand money exceeding of market value. DRT is empowered by SERFAESI Act to pass order against the bank to not use undue pressure upon borrowers.
1) it is necessary to peruse loan agreement signed by you and other borrowers with bank to advice
2) in the event of default bank must have charged you penal interest
3) obtain detailed statement of account from the bank
4) in addition personal bank guarantee must have been executed by you
5) without going through the papers we cannot say whether you can obtain court orders to pay only 1. 5 Cr
A few years ago we had taken a loan from UCO bank, along with 3 other people. In total there were 4 properties mortgaged for a principal of 10cr INR. All borrowers on this loan have defaulted. Our share of the loan is 1.5cr and the current market value of our mortgaged property is 2.4cr. The bank wants us to pay 3cr to release our property.
Is it possible to get a court order to pay only our share of the loan (1.5cr) ?
If it was a joint liability, you cannot split your loan separately from the joint loan. You may talk to bank authorities for the next step to be taken by you in this regard, they may suggest you some good tips by which you can find a route to escape from others liabilities to bank.
1. Did you take separate loan or it was a loan jointly taken by all of you?
2. If it is a joint loan then all of you shall be severely and jointly responsible for its repayment,
3. If the loan is separately taken by you, then you shall be liable to repay your loan only with applicable interest charged thereupon.
