legal recovery

7/24/2019 Legal Recovery

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Presentation on

Legal Recovery Measures


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PDR act

PDR provides for speedy andsummary disposal.

A service notice u/s 7 of the act alsoattaches the property of the borrowerand makes it unavailable for any saleor purchase .

Such provisions creates pressure onthe borrower to repay the debt.


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Basic Reuirements

!nly "Public Demand# can be recovered.

Recovery of loans by PSBs specially under PrioritySector and those under $ovt Sponsored schemes arecovered under the act.

Demand must be made

%erti&cate !'cer has to certify that Bank dues arerecoverable under PDR act.

()istence of credit facility and overdue in the account.

Documents are there to establish dues and are not

barred by limitation. Address and whereabouts of the party and location of

the property.


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*hy PDR

*here stake is not very hi+h

,ormally where char+ed security is

not available *here lar+e number of cases to be

dealt - ike P/S and $ovt Sponsoredcases

0mmediate and early action needed


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Documents to be submitted

%opy of demand ,otice. Reuisition and claim to be &lled and

si+ned by Br mana+er - duplicate

,otice to %erti&cate Debtor to be &lledon behalf of the %erti&cate!'cer- duplicate

1he %erti&cate to be issued by the

%erti&cate !'cer -duplicate Ad2valorem Stamp duty to be paid in

%ourt fees.


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Procedure

!n bein+ satis&ed that dues are le+ally recoverable and alsounder PDR act3 the %! will serve notice under Sec 7 of the

act. 1he notice is havin+ the followin+ e4ect 5 Any private transfer or delivery of immovable property in

the district of &lin+ the case shall be void a+ainst any claimenforceable in e)ecution of the certi&cate.

Amount due from time to time in respect of the certi&cateshall be a char+e upon the immovable property of thecerti&cate debtor 3anywhere3 and to which every otherchar+e created after service of the said notice shall bepostponed.0n e4ect3 after service of notice3 the %erti&cateholder becomes mort+a+ee.

6nder sec of the act 3 the certi&cate debtor may within 89days of notice3 deny liability and %! will hear his case withbank presentin+ documents and evidence for decision.


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Attachment of :oveable property

0f the %! is satis&ed that the %erti&cate Debtor islikely to conceal3 remove or dispose of the wholeor part of moveable property as would be liable toattachment in e)ecution of a decree of a civil court

and

1hat the reali;ation of the amount of certi&catewould conseuently be delayed or obstructed 3 he

may at any time 3 direct for the reasons to berecorded in writin+3 an attachment of the whole ora part of the moveable property of the certi&catedebtor.


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()ecution of %erti&cates

=. By attachment and sale -in case ofimmovable property and by saleeven without previous attachment

- in case of moveableproperty

>. Arrestin+ the certi&cate debtor anddetainin+ him in civil prison.

8. By both of = and > above.


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%ost and %har+es

0nterest ? @ pa -simple from thedate of si+nin+ the certi&cate to thedate of reali;ation of debt.-no

interest 3if paid within 8 months fromthe date of certi&cate

All other char+es and costs includin+

for servin+ of notice and proceedin+sfor reali;ation of debt.


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Death of %erti&cate debtor

0n case of death before issuin+certi&cate3 a fresh certi&cate case to beinitiated a+ainst the le+al heirs of thecerti&cate debtor.

0n case of death after certi&cate3

%erti&cate o'cer will serve notice tole+al heirs and proceed to e)ecute thecerti&cate a+ainst the le+al heirs.


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Appropriation of amount

Amount collected by %! will be

remitted to Br for appropriation.

Deposits accepted at the Br will be

marked as " without preCudice# andimmediately intimated to the %!.


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Recovery proceedin+s under PDR Act mandates

:aintenance of > -two Re+isters3 one at Bank leveland the other with the %erti&cate !'cer3 which needto be tallied and updated at re+ular interval. 0n *estBen+al these are termed as Re+ister and =9respectively.

%onstant persuasion by R!3 D:s are needed with

the District Administration and the matter ofenforcement of PDR Act needs to be discussed in theD%%/DR% orum with a &rm approach.


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ok Adalat

ok Adalats are constituted under " 1he e+alServices Authorities Act3 =E7#

ok Adalats have been constituted at variousplaces in the country for disposal of disputes in asummary way and throu+h the process ofarbitration and settlement.

unctionin+ of the ok Adalat is entirely voluntaryand conciliatory.


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ELIGIBILITY

,PAs3 irrespective of whether suit

has been &led or not which are inFdoubtfulG3 FlossG and Fwritten o4Gcate+ory3 with outstandin+ balance

upto Rs.>9.99 lacs will be eli+ible forsettlement throu+h the ok Adalats.


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(ssential reuirements for ok Adalat

proceedin+s

A+reement between borrower and the

bank to settle the dues. Application from the borrower to this

e4ect.

BankGs acceptance.


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*ho can refer cases to ok Adalat

- Section >9

By consent of both parties

!ne of the parties makin+ reference *here court is satis&ed to be taken up in ok

Adalat

%ompromise to be +uided by principles of Custice3

euity3 fairplay and other le+al principles. 0f no compromise is reached3 the matter will be

returned to court for disposal as per law.


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Procedures for ok Adalat

Re+ular liaison with the e+al services authorities is to

be maintained from time to time for holdin+ successfulok Adalat.

ist of eli+ible cases of the Bank be submitted to theaforesaid authorities for referrin+ the same to the okAdalat for settlement.

1he date3 venue and time of the ok Adalat has to be&nali;ed in consultation with the e+al ServicesAuthority.

Assistance to be provided to the e+al Services

Authority for preparation and issuance of notices underthe seal and si+nature of the e+al Services Authority.0n case of suit &led accounts3 the concerned authoritiesto be contacted for sendin+ the &les to the ok Adalat.

d f k d l


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Procedures for ok Adalat

After the notices are prepared and si+ned by the e+al

Services Authority3 the same to be collected and sent tothe concerned borrowers/+uarantors for appearin+ beforethe ok Adalat on the date 3 time and venue &)ed for thepurpose.

Borrowers/+uarantors should be contacted personally by

the concerned Branch for preparin+ the +round forsettlement before ok Adalat .

:RA for each account referred to ok Adalat has to becalculated as per the e)tant Recovery Policy of the Bank.

After the order is passed by the ok Adalat 3 all the settledcases are to be placed before the competent authority3 asper Discretionary power for BankGs sacri&ce in terms of thee)tant Recovery Policy of the Bank3 for approval.


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ok Adalat Procedures

All the cases settled in ok Adalatare to be kept under close follow upfor recovery of the settled dues.

0n case of default further steps areto taken for recovery.


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Status of award by ok Adalat - Section>=

(very award of ok Adalat shall bedeemed as decree of %ivil %ourt

(very award of ok Adalat shall be &naland bindin+ on all parties to the dispute.

,o appeal shall lie from the award of theok Adalat.


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Section >>

(very proceedin+ of ok Adalat will bedeemed to be Cudicial proceedin+s for

the purpose of Summonin+ of witness

Discovery of documents

Reception of evidence

Reuisitionin+ of Public Records.


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PAYMENT

Settlement amount in the ok Adalat shouldpreferably be paid in one stroke.

Jowever3 on case to case basis down payment of>H -at least not less than =9 and the balanceamount in >I months by installments dependin+upon the repayment capacity of the borrower3value of security.

0nterest will be char+ed as per the e)tant+uidelines in the Recovery Policy of the Bank.


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DECREE

A decree will be obtained from ok Adalat for the

settled amount and after full payment3 a dischar+e/nodues certi&cate will be issued by the Bank.

DEFAULT CLAUSE

0n default of payment of any part of the settledamount and/or amount of any of the installmentseither in part or in full3 or any breach of terms ofsettlement the relief and concessions +ranted to theborrower in the settlement shall stand withdrawn

automatically and the entire amount shall fall due andthe decree shall be put into e)ecution a+ainst theborrower.


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DR1 DR1s are established as per recommendation of

,arasimham %ommittee on Reforms in inancialSystem.

1he Recovery of Debts to banks and &nancial0nstitutions Act3 =8 came into force wef >I.9@.=8.

Applicable throu+hout 0ndia e)cept KLM 1he $!0 has constituted 88 Debt recovery 1ribunals

and H Debt recovery Appellate 1ribunal across the%ountry. Some %ities like ,ew Delhi and :umbai have8 DR1s5 Molkata and %hennai have > DR1s each.

1he provision of this act is applicable only in respectof debts due to any bank or &nancial institution for anamount of Rs.=9 lacks or above.


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DR1

Documents reuired

Statement of oan account All documents relied upon

Application fee in the form of DD

0nde) of documents.


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HDR1 Procedures

*hen any loan account shows symptoms ofbecomin+ ,PA3 the borrowers /+uarantors are to becontacted for re+ulari;in+ the account includin+reconstruction and rephasement wherever possible.

0f the reconstruction / reschedulement is notpossible3 SARA(S0 action shall be initiatede)peditiously in the account after the same isclassi&ed as ,PA.

(ven after issuance of SARA(S0 notice3 Borrowers

and +uarantors are to be approached personally forcompromise settlement and for renewal ofdocuments.

DR1 P d


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DR1 Procedure

0f the entire SARA(S0 action cannot be completed

within the limitation period and/or any amountremain due after adCustment of the sale proceeds ofthe securities 3 the suit be &led within limitationperiod after obtainin+ necessary permission

therefor from the competent authority and after&lin+ of the suit3 the Sarfaesi action shall becontinued till its lo+ical end.

or the purpose of &lin+ suit after obtention ofpermission3 papers are to be handed over to anempanelled Advocate for preparation of the Plaint /application to be &led before the %ourt / DR1.

All liuid securities available in the account are tobe adCusted before &lin+ of the suit.


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DR1 Procedure

Before &lin+ of Recovery Application before the DR1 forrecovery of dues3 it should be ensured that all loanin+documents are complete in all respects and alive.

1he correct details of the borrowers / +uarantorsname3 surname3 father / husbandGs name3 and latestrecorded and complete residential address / address ofthe 6nit be furnished with postal Pin %ode.

After receipt of the draft plaint / application 3thevarious averments made in the said draft plaint

/application are to be veri&ed at the branch and R! tosecure Bank3s interest fully.


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DR1 Procedure

!ri+inal documents need notbe &led in the %ourt / DR1 atthe time of institution of the case. As and when the ori+inaldocuments are reuired to be &led3 photocopies of thesame to be kept in the Branch alon+with the receipt of thedealin+ Advocate.

1he said &lin+ of ori+inal documents before the %ourt / DR1

be also recorded in the !rder sheet of the %ourt / DR1. Acopy of the said order sheet be also kept at the branch.

1wo sets of summons which are to be sent to thedefendants are to be collected from the DR1 and served on

the defendants by speed post and physically. 1he

re+istration / speed post receipt / A/D %ard is to be handedover to the advocate.


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DR1 Procedure

*here the Debtors are not traceable despite beste4orts by the banks and the Recovery !'cers3 thecases should be cate+ori;ed as "adCourned sine die#with an option to reopen as and when reuired.

0n each recovery application &led before the DR13separate application for passin+ interim order ofinCunction a+ainst the defendants from transferrin+ /alienatin+ their personal assets shall be &led.

1he telephone/ mobile number of all the advocateshandlin+ the BankGs cases have also to bemaintained at the branch.

DR1 P d


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DR1 Procedure

0t should be ensured that dealin+ advocates appear in the

cases entrusted to him on all the dates before the DR1s fullyprepared..

1he witnesses who are to depose at the DR1 must beproperly briefed by the advocate and he should also +et

prepared to face cross e)amination from the side of

defendants. 1he representative of the branch must attend the hearin+

of the cases on all dates and &nali;e future strate+y in thematter in consultation with the advocate and R! and J!whenever reuired.

1he cases should be continuously / vi+orously followed upwith the advocate/s for uickenin+ the process of cases

leadin+ to decree/issuance of certi&cate.


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DR1 Procedure

0n cases where securities are available3 immediatesteps have to be taken throu+h the advocates forobtainin+ interim reliefs in the form of appointmentof %ommissioner / Receiver for makin+ inventoryover the securities3 sale of the securities and

adCustment of sale proceeds out of the assetstowards dues of the Bank.

1he advocates be advised to &le applications for

attachment of the personal assets of the borrower /+uarantor3 a list of which has to be provided by thebranch for creatin+ pressure on the borrower /+uarantor for payment of BankGs dues.


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DR1 Procedure

0n case the company has +one into liuidationand the sale proceeds are lyin+ with the o'cialliuidator3 a'davit of claim has to be &led by theadvocate before the !. for recoverin+ BankGs

share out of the sale proceeds.

As soon as the decree / recovery certi&cate isissued / passed3 the matter be followed up with

the advocate for initiation of e)ecutionproceedin+ a+ainst the defendants / Cud+mentdebtors / certi&cate debtors.

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RULE

AM!UNT !F REFUND"#1he Presidin+ !'cer of the1ribunal before which any case is &led for settlement ofthe dues of the Banks and inancial 0nstitutions3 mayorder refund of fee remitted at the time of &lin+ the case

at the followin+ rates H9 of the fee remitted in the cases which are settled

prior to commencement of the hearin+ before the1ribunal.

>H of the fee remitted in the cases which are settled

at any sta+e of the proceedin+s before the &nal order bythe Presidin+ !'cer is passed.


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RULE $

PR!CEDURES F!R REFUND"

1he applicant and the defendants shall &le

a Coint application before the Re+istrar ofthe 1ribunal for refund of the court feeindicatin+ the details of the settlement.

1he Presidin+ !'cer shall pass orders for

refund of the court fee indicatin+ theamount of refund in the order.


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SARA(S0 act3 >99>

1his act +ives power to secured lender to realisedues throu+h enforcement of security interestwithout intervention of court.- e4ective from>=.9@.>99>

1he act deals with three aspects =.Promotin+ securitisation

>.ormation of asset Reconstruction %ompany.

8.(nforcement of security interest without

intervention of court.

(li+ibility


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(li+ibility

=. 1he account must have become ,on 2 performin+ Asset.

>. 1he security documents must be within the period of

limitation8. 1he outstandin+ amount with interest must not be less than

Rs. =.99 ac in the account.

I. 1he outstandin+ amount with interests i.e. the amount dueshould not be less than >9 of the principal amount.

H. Security interest must have been created by a way ofhypothecation and mort+a+e in favour of the bank forsecurin+ the loan -pled+e of movables is not covered underthe Act.

@. 0mmovable properties mort+a+ed with the bank should not bea+riculture land.

7. Secured assets must not be covered under JirePurchase/ease A+reement.

0ssuance of ,otice


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0ssuance of ,otice

,otice to be served on both borrowers and +uarantors ifalive +ivin+ @9 days time to repay the debt.. 0f any of the

borrower or +uarantor is dead then the notice is to be sentto the le+al heirs of the deceased borrowers/+uarantorsstatin+ inter alia that they are Cointly and severally liablefor payment of BankGs dues

,otice be issued under the si+nature of Authorised !'cer. ,otices should be sent at the addresses last

known/recorded with the Bank.

1he book dues and the notional interests should not beshown separately in the notice but the entire liabilityshould be calculated in respect of the loan accountcalculatin+ notional interest till the date of issuance of thenotice of the borrower.

0ssuance of ,otice


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0ssuance of ,otice

1he securities to be enforced for recovery of the outstandin+

amount should be speci&cally mentioned in the notice. 0f a common security has been created in more than one

account3 a sin+le notice is to be +iven instead of separatenotice.

,otice is to be sent by Re+istered post/Speed post with

acknowled+ement due.1he various loan accounts/credit facilities and the outstandin+

amount a+ainst each should be speci&cally stated in the notice.

0f any bank +uarantee or bill discountin+ or any non fundfacilities have been +iven to the borrower and the same have

not devolved on the bank3 the same should be speci&callymentioned in the notice reservin+ bankGs ri+ht to issue freshnotice.


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Service of ,otice

0f the borrower/+uarantor is avoidin+ the service ofthe above notice3 the same shall be e4ected bya')in+ the copy of the demand notice on the outerdoor or some other conspicuous part of the houseor buildin+ where the borrower/+uarantor carries on

business or ordinarily resides or personally worksfor +ain.

0n addition to a')in+ the notice3 the contents ofthe notice be published in two leadin+ newspaper3

one in vernacular lan+ua+e and the other in (n+lish3 where the notice could not be served on theBorrowers/$uarantors throu+h post or personally.


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-Disposal of Representation/!bCectionraised by the Borrower

6nder Section =8-82A3 the borrowerhas ri+ht to make representationa+ainst the above notice and thatmust be disposed of by the Bankwithin =H days of receipt thereof .


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Possession 2:oveable Possession of movable assets is to be taken in presence of

> -two witnesses.

Possession of the secured assets is to be taken aftersunrise and before sunset. 0f the process of possessionhas started after sunrise the same must be completed asfast as possible.

Panchnama has to be prepared /drawn as nearly aspossible as per appendi) = to the Security 0nterest-(nforcement Rules3 >99>.

Punchnama is to be si+ned by at least > -two witnesses.

0nventory of the property is to be prepared in the form

+iven in appendi) 00 to the Security 0nterest -(nforcementRules3 >99> and a copy of the same is to be +iven /sent tothe borrower a+ainst his acknowled+ement.


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After takin+ possession of the property3 the same is

to be kept in the custody of the Authori;ed !'cer or with any person authori;ed by

him in this re+ard.

6tmost care of the property is to be taken as

e)pected of an owner of ordinary prudence wouldtake in respect of the said property till they are soldor otherwise disposed o4. 1he +oods may beinsured if necessary.

0f the property is subCect to speedy or naturaldecay3 or the e)penses of keepin+ such property incustody will outwei+h3 the same3 the same may besold at once.


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Possession :oveable

0f the securities are under the lock of theborrower and borrower is not there todeliver possession3 the Authori;ed !'cer

can break open the lock to take possessionand make reference thereof in Appendi) N03 to the Security 0nterest -(nforcementRules3 >99> and relock the premises after

takin+ possession.

Possession 0mmovable


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Possession 0mmovable

Possession is to be taken by deliverin+ possessionnotice as prepared in the form Appendi)20O to theSecurity 0nterest -(nforcement Rules3 >99> to theborrower.

A copy of the notice is to be a')ed on the outerdoor or other conspicuous part of the property.

0mmediately after takin+ possession of the propertythe valuation is to be completed. 0n case there are

distressin+ conditions e)istin+ with the property3 thevaluation report should indicate the +ross valuationand distress valuation.

P i f 0 bl


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Possession of 0mmovable

0f the possession of the secured property is not withthe borrower and the same is in possession of anotherperson3 the said person be +iven notice to handoverthe vacant possession. 1he Authori;ed !'cer cantake symbolic or constructive possession of the said

property and a copy of the possession notice be +ivento the occupant besides a')in+ a copy thereof on themain door of the property.

0f the secured premises are locked3 the Authori;ed!'cer shall break open the lock and mention thereofin Appendi) 2 0O of the Security 0nterest -(nforcementRules3 >99> and relock after takin+ possession

P i f 0 bl


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6nder Rule E-> of security 0nterest -(nforcementRule3>99>3 the possession notice is to bepublished in two newspapers one in vernacularlan+ua+e and other in (n+lish an+ua+e havin+su'cient circulation in the locality. 1he incident ofbreakin+ open the lock should not be mentionedin the notice to be published in the newspaper.Such publication should be done as soon as

possible and not later than 7 days from date oftakin+ possession.


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*here borrower is inclined to +ive his consent orwillin+ness for takin+ possession by the bank3 thenotice under section =8-> SA(A(S0 Act has to be+iven and service of the same should be e4ected

on him and in reply to the said notice in writin+3the borrower should +ive his consent/willin+nessto handover possession of the property and forsale of the same. 0n the said event the Authori;ed

!'cer can take possession of the property andpublish the notice in form Appendi) N 0O of theSecurity 0nterest (nforcement Rules3 >99>.


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0n case there is apprehension of resistance orobstruction in takin+ physical possession of thesecured property3 the bank bein+ the securedcreditor can reuest the District :a+istrate or

%hief Kudicial :a+istrate within whose Curisdictionsuch secured assets are situated in writin+ to takepossession of such assets and handover the sameto the Authori;ed !'cer.

Police help may be sou+ht by the Authori;ed!'cer while takin+ possession of the securedproperties.


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At the time of takin+ possession of the moveable

assets3 Panchanama is reuired to be made as perrule I-= of the Security 0nterest -(nforcementRules3 >99> in presence of > witnesses and to besi+ned by the said witnesses as per Appendi)20 tothe said rule.

1he said Panchanama is to be prepared in presenceof witnesses and si+ned by them and the si+natureof the Borrowers3 $uarantors are to be obtained onthe same in case they are present at the time of

takin+ such possession. 0n case of refusal to acceptthe said Panchanama3 such refusal is to be recordedby the Authorised !'cer at the bottom part of thePanchanama.


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As per I-> of the said rules3 the Authorised!'cer shall make an inventory of the property asper Appendi) 00 and deliver a copy of the same tothe borrower3 +uarantor or any person certi&ed to

receive on their behalf

Authorised !'cers while returnin+ the possessionof the assets should obtain a separate letter from

the Borrowers3 $uarantors to safe+uard theinterest of the Bank.


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+ 6nder rule E-@ and E-7 of the Security

0nterest (nforcement Rules >99>3 the Authorised!'cer shall serve to the borrower a notice of 89

daysG for sale of the immoveable secured assets. 1he de&nition of borrower under Rule >-f of the

SARA(S0 Act >99> also includes the +uarantors.

1herefore3 the Sale ,otice has to be sent to the

Borrowers3 $uarantors by Re+istered Post / SpeedPost as well as to be a')ed on a conspicuous partof the immoveable property.

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Authorised !'cers have to provide clear89 days time from the date of publication

in ,ewspaper till the date of sale. 6nder no circumstances the said period of

89 daysG can be reduced by anyAuthorised !'cer.- Rule -= of Securityinterest -(nforcement Rules >99>

.

-i)ation of Reserve Price3 (arnest money3 Date of


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0nspection3 Date of submission of !4er3 Date ofsale

Before e4ectin+ sale of immovable property Authorised

!'cer shall obtain valuation of the property from anempanelled valuer and &) the reserve price inconsultation with the appropriate authority of the Bank.

(arnest money should be at least =9 of the reserve

price.1he inspection date should be &)ed at least >9 days

after the date of publication of the sale notice.

1he last date for the submission of o4er/bid should be =-one day prior to the date of sale.

Date of sale should be &)ed in such a way that thereshould be at least 89 days clear +ap between the dateof publication of the sale notice and the date of the sale.

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-Publication of Sale ,otice

Sale notice has to be published in two newspapersone of which is to be in vernacular lan+ua+e andother in (n+lish an+ua+e havin+ su'cientcirculation in the locality +ivin+ clear 89 days time

from the date of publication of notice in thenewspaper till the date of sale.- ()ample2 0f the Sale,otice is published on =st of :arch3 >9=93 sale datecan be &)ed after 89 days e)cludin+ the date ofpublication i.e. =st April3 >9=9 or thereafter.

0f the sale notice has been published in newspaperson di4erent dates3 the last date of publication is tobe considered for countin+ 89 days time.

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-Publication of Sale ,otice

1he copies of the sale notice published in the

newspapers should be sent to the borrower byre+istered post/speed post with acknowled+ementdue immediately upon publication of the sale noticein the newspaper.

iv 1he copy of the sale notice shall also be a')edon a conspicuous part of immovable property.

All the auctions for sale of the secured assets underSARA(S0 Act2>99> to be conducted throu+h e2auction only e)cept where the value of the loan orof the property is less than Rs H.99 lakh after takin+necessary permission from the Re+ional !'ce.

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-0ssuance of Sale %erti&cate

1he hi+hest bidder may be declared as the successfulpurchaser and be advised to deposit >H of the sale priceinclusive of the earnest money immediately with theauthorised o'cer conductin+ the sale and in case sale isconcluded after bankin+ hours such deposit be made on

the ne)t workin+ day. 1he balance amount of 7H has tobe deposited within =H days from the date of salecontainin+ a default clause that in the event of failure ordefault of payment within the stipulated date3 the amountso deposited shall be forfeited. After the entire sale price

is deposited3 the sale be con&rmed in favour of thepurchaser throu+h a letter.

-0 f S l % ti& t


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0n case of sale by private treaty the authorised o'cer

shall send a notice to the mort+a+er intimatin+ theprice at which the property is to be sold by way ofprivate treaty with a reuest to brin+ an intendin+buyer who is ready and willin+ to buy the property atthe price above the price mentioned in the notice within

the stipulated time.

After the full amount is received from the successfulpurchaser within the stipulated time3 the authorised

o'cer may issue sale certi&cate in favour of thepurchaser. 0n the sale certi&cate to be issued it shouldbe mentioned that the properties sold is "free from themort+a+e char+e of the Bank#.



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0f the purchaser reuires the authorised o'cer toe)ecute conveyance deed in his favour theauthorised o'cer may do the same and the salecerti&cate if earlier issued shall be taken back from

the purchaser. 0t should inter alia be recorded in theconveyance deed that the property is sold free ofmort+a+e char+e of the Bank.

1he entire cost of re+istration includin+ stamppapers shall be borne by the purchaser.

R f d f t f th l


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Refund of e)cess amount from the saleproceeds

i 0n case the sale proceeds is more than the duesas claimed in the notice3 the e)cess amount canbe refunded to the borrower/secured debtors -aperson whose property was sold.

&'( Filin) o* +,it -.ere t.e +ale pro/ee0+ i+le++ t.an t.e 0,e+ o* t.e ban1"

i 0f dues of the Bank is less than the saleproceeds3 the suit is to &led for the balance

amount.


62/63

Appropriation of Sale Proceeds

All costs3 char+es and e)penses incurred by thebank in connection with the sale of the propertyshall be adCusted &rst out of the sale proceeds.

1he balance amount of sale proceeds after suchadCustment shall be credited towards theoutstandin+ liability in the oan accounts.


63/63

1hank ou