• HDFC bank harassment

If the bank does not provide us limit after sanction and does not provide the IBA Format to State Bank of Patiala for undertaking of the limit.They sometimes also drop the limit without any notice.Can we demand for the stay if our bank A/c would become NPA and if stay is demanded it should be demanded from which court is the stay possible in this case.
Asked 5 months ago in Business Law from Ellenabad, Haryana
You should firstly understand the law involved in the proposed action. 
You should get a reply in writing for the communication in writing done by you seeking clarification from the bank for their such an erratic action which deprives you the privileges and rights as envisaged in the terms and conditions of the  loan agreement.
For injunction you can approach civil court itself by filing a suit for permanent injunction againstthe bank restraining them from indulging in such unfair practice and also to not make your account NPA at their whims and fancies without following correct and legal procedures in this aspect.
T Kalaiselvan
Advocate, Vellore
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1) if bank does not provide limit after sanction then you should complain to bank ombudsman against bank  action 

2) similarly if limit is with drawn without any reason issue notice to bank to restore limit as with drawal affects your working capital for business and causes loss in business 

3) if your account becomes NPA court would not grant you stay in case recovery proceedings are initiated by bank but you can make counter claim for losses suffered by you 
Ajay Sethi
Advocate, Mumbai
23354 Answers
1222 Consultations
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if account is declared NPA bank would take recovery proceedings before DRT 

Tribunal would not grant you any stay of the recovery proceedings . 
Ajay Sethi
Advocate, Mumbai
23354 Answers
1222 Consultations
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Can be approach to the court after NPA of the Bank A/c.


Once the bank is declaring the asset as NPA you have no option than to approach DRT alone and not a civil court.
After declaring  NPA the bank may issue notice under sarfesi act and may initiate follow up action as envisaged in the law in this regard, hence better be alert about it.
T Kalaiselvan
Advocate, Vellore
14151 Answers
127 Consultations
5.0 on 5.0
If the bank does not provide the limit after sanction then a suit for mandatory injunction can be filed against it. Furthermore, injunction can also be sought against classification of your account as NPA due to the lapse on the part of the bank. The suit has to be filed in the court within the local limits of whose jurisdiction the bank is situated. 
Ashish Davessar
Advocate, Jaipur
18183 Answers
449 Consultations
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