Legal Question in Banking Law in India

22.01.2016

Dear Rajesh,

The action to be taken by the Bank whether to serve you further notice or directly repossess the vehicle is at the Bank's sole discretion.

Regards,

1) Representation/Objection: against the demand notice Sec13 (3A).

Communication of reply is mandatory in both the events.

2) After service of the notice if the borrower makes any representation or objection against the demand notice the A.O. should immediately send it to the secured creditor who in turn should send a reply or advise the A.O. to communicate reply to the borrower within �fifteen days� (recent amendment substituted for one week) of receipt of such representation or objection by registered post with AD or Courier. Evidence of communication is to be preserved for evidence.

Representation: seeking for extension of time for payment or OTS.

Objection: Challenging the validity of the demand notice on various grounds.

3) In case the secured assets are movable, the A.O. can take possession of them in the presence of two witnesses and draw a panchanama, as nearly as possible as given in Appendix-I [ See Rule 4(2) of S.I.(E) Rules] (Evidence to be preserved).