• Bank loan dispute in DRT court

I have taken bank loan by keeping house documents on 2006 for amount 10 lakhs.upto now i paid interest amount till 16-17 lakhs.for last 10 months i did not paid interest amount so bank sent posession notice and  filing the case in DRT court saying that i have to pay still 10 lakhs.the property was in my mothers name,and my mother was uneducated.on 2008 due to some finance matters one person cheated my mother and transfered the property to his name through AGPA,now in EC his name appears as AGPA holder.but he doesn't have any proof of giving amount to us my mother filed the case against him in the court  on 2008 and the case is pending.so if the bank file the case in  DRT court what was the consequences? can i request court that i will pay less amount (3-4 lakhs) to the bank since i paid 16- 17 lakhs due to high interest rate of the bank
Asked 7 months ago in Civil Law from Hyderabad, Telangana
1) make an offer for one time settlement with the bank of around Rs 7 lakhs and offer to pay the amount in instalments over period of 2 years 

2) request the bank to waive off part of interest on the loan against property 

3) bank may not agree to accept only Rs 3 lakhs if loan outstanding is Rs 10 lakhs 
Ajay Sethi
Advocate, Mumbai
23230 Answers
1219 Consultations
5.0 on 5.0
Hi 
Since the property has been mortgaged to the bank, the AGPA holder cannot sell the property without permission of the bank. 

What your mother has done is that she has given a power of attorney which is ok in given circumstances.

Another  advantage in your favour is that your mother  has filed a case against the power of attorney holder in 2008 . we need to know where the case stands now. 

With reference to DRT, bank has the first right to the property and it is advisable that you settle with the bank first and take possession of the property. normally banks will be ready to  settle if you can at least pay 80% of their demand within a span of 2/3 months. 
 
Once you settle with the bank, you can automatically win the case  against your GPA holder also.
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
1. You had availed loan from the Bank and had signed all required documents duly agreeing to repay the loan amount with interest at the agreed rate,

2. SARFAESI Act,2002 is very straight jacketed Act and it is absurd to think that Bank will accept your proposal to pay Rs.3/4 lakhs against Rs.10 lakhs,

3. DRT has no authority to ask the Bank to settle the loan account at a particular amount,

4. Negotiate with the Bank directly and try to settle the account by paying an mutually acceptable amount.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
5.0 on 5.0
Once the matter has been referred to DRT by bank, it will not consider your request to pay only 3 lakhs or anything.  The terms of bank are to be complied with otherwise the bank may proceed with the procedures meant for it accordingly.
The GPA agent is not the title holder hence he cannot claim title to the property, your mother can issue notice and cancel the GPA deed given to him and can endorse a copy to registrar in this regard besides giving a wide publication in the local newspaper about it
T Kalaiselvan
Advocate, Vellore
14006 Answers
127 Consultations
5.0 on 5.0
Obtaining stay order is not that easy as you have to establish strong grounds to challenge the action of the bank. If the borrower files any appeal under section 17, then, the DRT will look at the outstanding amount in the notice and insist for the deposit of 20 or 30% of the outstanding before granting any interim relief and this interim relief can only be for some time or till the disposal of the Appeal in some cases. So all that you can do is to request the DRT to allow you deposit less amount. 
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
1) i had advised you to make offer for OTS to bank 

2) if out standings are of 8 months and you are in position to pay then make payment 

3) when bank seeks to obtain orders for possession of your property draw attention of court to fact that you have paid all the outstanding dues 

4) it is for bank to take call regarding waiver of legal charges 
Ajay Sethi
Advocate, Mumbai
23230 Answers
1219 Consultations
5.0 on 5.0
It is not a hidden secret that bank officials are paid incentives if they recover a bad loan. You have to either yield to the settlement which the bank is willing to offer, or bear the consequences. The legal charges can be waived off by the bank but in practice they are seldom waived.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
the SRFAESI Act, empowered the lenders to take into their possession the secured assets of their borrowers just by giving them notices, and without the need to go through the rigors of a Court procedure.The Debts Recovery Tribunal now deal with two different Acts, namely the Recovery of Debts Due to Banks and Financial Institutions Act as well as the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act. While the aim of the both the Acts is one and the same, but their route is different. 
 A defendant in an application may, in addition to his right of pleading a set-off , set up, by  way of counter-claim against the claim of the applicant, any right or claim in respect of a cause of action accruing  o the defendant against the applicant either before or after the filing of the application but before the defendant  has delivered his defence or before the time limited for delivering his defence has expired, whether such  counter-claim is in the nature of a claim for damages or not  Where the defendant fails to show cause why he should not furnish  security, or fails to furnish the security required, within the time fixed by the Tribunal, the Tribunal may order the  attachment of the whole or such portion of the properties claimed by the applicant as the properties secured in  his favour or otherwise owned by the defendant as appears sufficient to satisfy any certificate for the recovery of debt. 
The Tribunal may, after giving the applicant and the defendant an opportunity of being heard, pass such interim  or final order, including the order for payment of interest from the date on or before which payment of the amount is found due up to the date of realization or actual payment, on the application as it thinks fit to meet the ends of justice. 
Therefore you can make the presentations before the DRT accordingly.
T Kalaiselvan
Advocate, Vellore
14006 Answers
127 Consultations
5.0 on 5.0
1.You should have put forth your said proposal on receipt of the Demand Notice before receipt of the Possession Notice,

2. However, send a request letter to the Bank requesting for regularising your NPA account on received of the pending installments with intrest,

3. If CITY Bank refuses to do that, negotiate with other PSU Bank to shift the loan account in which case the PSU Bank will pay the balance loan amount and the loan account will be transferred to  the new Bank. However, negotiate with PSU Bank immediately and ask the CITY Bank to transfer the account right now. The Bank may file a Original Application asking DRT to take possession of your property to realise the dues  which will take long time to be disposed of. Meantime they will take physical possession of the property  by applying before the DM/CJM for which they won't have t approach DRT. DRT Office is open and anybody can file application. The Court hearing will start from 6.6.2016 when the PO from Kolkata will hear the matter being the incharge of DRT, Hyderabad,
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
Ask a Lawyer

Civil Lawyers

T Kalaiselvan
Advocate, Vellore
14006 Answers
127 Consultations
5.0 on 5.0
Ajay Sethi
Advocate, Mumbai
23230 Answers
1219 Consultations
5.0 on 5.0
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
5.0 on 5.0
Nadeem Qureshi
Advocate, New Delhi
3533 Answers
130 Consultations
4.9 on 5.0
Rajgopalan Sripathi
Advocate, Hyderabad
868 Answers
43 Consultations
5.0 on 5.0
Atulay Nehra
Advocate, Noida
434 Answers
15 Consultations
4.7 on 5.0
Shivendra Pratap Singh
Advocate, Lucknow
2737 Answers
41 Consultations
4.9 on 5.0
Ajay N S
Advocate, Ernakulam
1915 Answers
19 Consultations
5.0 on 5.0
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0