Apni Law Staff asked 2 years ago
My family faced a tough situation when our loan was declared a non-performing asset (NPA) and the bank served us a 13(2) notice. We submitted detailed objections, spanning 48 pages, to the bank. Unfortunately, my mother fell critically ill during this time, so I requested the branch officials to visit her and collect the documents. The Branch Manager received the copies and I even handed over copies for the Chief Managing Director (CMD) and the Account Officer (AO). Despite this, the bank issued a 13(4) notice and the case went to the Debt Recovery Tribunal (DRT). During the proceedings, the bank’s lawyer acknowledged receipt of our objections but argued that since they were given to the Branch Manager instead of the AO, no reply was provided. We, however, believe that the SARFAESI Act of 2002 clearly states borrowers can submit their objections to either the Secured Creditor or the AO, while the reply should only come from the AO. As the loan agreement was signed with the bank manager, who is the representative of the secured creditor, handing over the copies to him shouldn’t be considered wrong. We believe this case should be revisited due to the bank’s failure to respond to our valid objections.
Best Answer
Apni Law Staff answered 2 years ago
Under the SARFAESI Act, 2002, objections to a 13(2) notice can be submitted to either the Secured Creditor or the AO. As the Bank Manager is a representative of the Secured Creditor, delivering the objections to him fulfills the requirement. The bank’s failure to respond to your valid objections, despite acknowledging receipt, could be grounds for revisiting the case, particularly considering the difficult circumstances.
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