SARFAESI/HC : "RBI's Guidelines Can Be Followed in One Time Settlement", Borrower's Petition Allowed

 An Interesting Judgment on Banks' Recovery by HC

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 ("SARFAESI Act,2002") - Borrower v Secured Creditor - Borrower's Account Turned Non Performing Asset (NPA) - Borrower Approached Court - Direction Issued to Bank

In this case, facts were that a person obtained a "loan". Later on, said borrower's account turned into NPA; "Orders under S.13(4) of SARFAESI Act, 2002 were passed" ; possession was also taken.

Finally, it has been held that if a borrower, under certain conditions, makes a representation and bank is willing to consider One Time Settlement, then One Time Settlement can be made by Secured Creditor in accordance with RBI's guidelines.

Finally, borrower's petition was allowed with direction to secured creditor not to take "any coercive action" against borrower for certain time. 

Citation : [2021] GCtR 1253

Vishal

Guwahati

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