How Can Gurugram Debt Settlement Lawyers Assist in Pending DRT Cases?
You do not have to fight with the bank till the end i.e. till order is passed if you already have a DRT case pending. But you can always try settlement as well depending upon the situation at hand and if the lender is agreeable to settlement. Amount of settlement and conditions of settlement have to be noted down.
Take case where you have a debt recovery case pending in Gurugram against your loan . You might have a huge outstanding balance against that asset which is secured. There could be multiple properties involved if it’s a business asset. There could be guarantors involved,or worse a possession case could be filed. Hearings might be fixed or even a hearing date. But now that you want to settle you are looking to arrange money to settle your loan.
There is a lot of factors which need to be understood before you can even propose settlement to lender. Factors like DRT case pending, original loan papers, bank demands, your repayment capability and possibility of settlement needs to be understood. If you have a pending case against you, BK Singh Advocate will help you understand this aspect better.
One must understand that debt settlement does not mean your loan gets cancelled. It’s something that bank has to agree to and you have to settle on certain terms and conditions which have to be noted down in a legal document.
Even if you already have a DRT case pending against you, it becomes extremely important to take prompt action on your case. You don’t want to delay your hearing or proceedings because you want to settle. BK Singh Advocate can help you understand your pending case against you at DRT and what can be done about it.
For matters involving a pending proceeding in Gurugram, you can also review the DRT Lawyer in Gurugram service page for related legal assistance.
Why Does a Pending DRT Case against you require careful planning for settlement?
Sometimes when a DRT case gets passed it can amount to a higher figure than what your bank is showing you. This could be because of missed add-ons at loan sanction stage. Your loan agreement or security document or your guarantee or bank statement or bank’s demand notice or your pleading or interim order passed by DRT or earlier correspondence.
Don’t worry Banking regulation act 1993 provides all law needed to operate during the proceeding at DRT and appellate which is DRAT. Section 19 speaks about application made to the tribunal for recovering debts due by bank or financial institution.
BK Singh Advocate will go through your DRT case pending against you and highlight all points mentioned above and what all documents need to be verified.
There are numerous salaried person’s, businessman’s, MSME’s and even corporate houses in Gurugram who at some point would have taken a loan. Whether secured against property or unsecured loan. Whenever they face some monetary problem or due to some unforeseen circumstances it leads to a dispute against them.
Therefore it is important that you settle your debt cautiously without losing more money or entering into the tedious process of DRT.
Quick Facts About DRT Debt Settlement
Documents required to be checked before looking at settlement
To figure out where you stand from a borrower’s point of view you will have to gather all your DRT case related files, loan/sanction letter, latest account statement, loan repayment schedule, history of repayment/ payment proof, any communication between you and bank, any security you have created for loan, mortgage documents if any, guarantee documents if any and any other correspondence.
If bank has initiated SARFAESI action then any communication related to that would help. Like notice under SARFAESI sent to you, demand notice, notice for possession, auction notice etc.
Any Orders passed by DRT/DRAT in the earlier stages if any. All this information will help BK Singh Advocate to analyze the procedure followed by DRT till date and what issues need to be ironed out before deciding to settle or not.
Below is a list that includes but not limited to the above documents.
- Loan/ sanction letter
- Latest Account statement
- Loan repayment schedule/ payment proofs
- Pleadings filed in DRT & notice issued by DRT
- Orders passed by DRT/ DRAT(if any)
- Notice issued u/s SARFAESI(if any)
- Mortgage/Security documents(if any)
- Guarantee documents(if any)
- Communication received from/ sent to Bank
- Any previous settlement or OTS offer received.
- Total amount paid till date
- Property document. if you have given any property as security
- Loan settlement terms
If you want BK Singh Advocate to understand your position we will also need a clear picture of what you’re hoping to settle for.
For settlement-related matters, borrowers can also review the OTS Settlement Lawyer service page for information relating to OTS and settlement documentation.
What Should a Borrower Check in an OTS Proposal?
Just because your bank offers you a settlement amount doesn’t mean you jump on it. Below are certain questions you should ask yourself when reading through an OTS letter.
BK Singh Advocate will analyze your OTS offer and point out everything you need to know about your current DRT case and/or property.
Where the matter involves a guarantor, the DRT Guarantor Defence Lawyer service page may also be relevant for understanding guarantor-related legal issues.
Does a Settlement automatically STOP your DRT case?
No, the borrower should not make an assumption that just because he has entered into a settlement agreement that the DRT proceedings will automatically be stayed /abated.
It all depends on the type of settlement you have reached with your lender. You might have to take certain steps with respect to the pending proceedings. You should speak to DRT lawyer before making any decisions if DRT proceeding have been initiated.
As mentioned above by Advocate BK Singh – If DRT /SARFAESI proceedings have been initiated against you THEN it is advisable to get the settlement agreement in writing and follow up with respect to the pending proceedings.
I.e. If you are going for OTS Make sure you know exactly what will happen IF you pay in full / on time as per agreed. What if you miss the payment due date?. Will your DRT case still be continue since you failed to make payment on time etc.
Consulting a debt settlement lawyer in Gurugram will help you tie up all the loose ends with respect to your settlement and ongoing court proceedings.
If recovery action under SARFAESI is also involved, you can review the SARFAESI Section 17 DRT Lawyer service page for the related legal service.
When to Consult a Debt Settlement Lawyer in Gurugram?
Consult a debt settlement lawyer in Gurugram IF
- You have received another DRT Notice / possession notice / Auction Letter. Or if
- There is a hearing date coming up for your DRT case. Or if your bank has offered you an OTS. Or a phone settlement has been agreed but not reduced to writing.
- See above. Similarly if there is more than 1 party involved. There can be a combination of personal surety from you when you applied for a business loan, company surety and even mortgage of a 3rd party property.
- You’re not sure how much you owe – you’ve paid a lot of money and it still shows that you owe a lot on your bank statement.
BK Singh Advocate will help you understand every document related to your loan. We will help you understand where you legally stand in your recovery/suit proceedings. Help with Settlement Case, we can go through an OTS Letter. You can hire BK Singh Advocate to represent you at DRT or Debt Recovery Appellate Tribunal if you want us to.
If you are dealing with a bank recovery notice alongside your pending DRT matter, you can also explore the Bank Recovery Notice Lawyer service page.
Can a Debt Settlement Lawyer help me with a pending DRT case?
BK Singh Advocate Offers help with DRT case, SARFAESI case, Bank Recovery Case, Settlement/OTS help, Guarantor Case & DRAT Appeal.
Visit the Gurugram page to see services provided for Gurugram like Loan Settlement Help, DRT Case help in Gurugram, SARFAESI case in Gurugram, Guarantor Case & DRAT Appeal help in Gurugram.
If you’re a borrower living in Gurugram you can review what documents you currently have.
Submit all the documents mentioned above to BK Singh Advocate and we can help you understand your documents. Where you stand in your recovery process. Help with Settlement Case. Represent you at DRT or help with your OTS Letter.
This can apply to anyone whether you’re an individual or you own a business or an MSME. Even if you have provided a guarantor to bank for your loan. Or if you have put property against your loan for bank recovery.
For MSME and business loan matters, you can also review the MSME Loan Recovery Lawyer service page.
For pending DRT proceedings generally, the DRT Case Defence Lawyer service page provides another relevant service reference.
FAQ’s
1. Can I settle my DRT case which is already pending?
You sure can look into settling your ongoing DRT case. It all depends on the scenario if you can settle with lender. You’ll then need to settle that and take care of the pending DRT case as well.
2. Can my case be settled?
Your loan can surely be settled. But once again it all depends on bank and your situation. No lawyer can guarantee you that the bank will let you do an OTS or settle your case.
3. Can I hire a debt settlement lawyer for my pending case?
Yes. They would be able to go through your DRT file, loan details and understand how much you can afford to pay towards settlement/recovery amount.
BK Singh Advocate can represent you in DRT. If you qualify we can represent you at DRAT as well.
4. If I’m talking to bank about settling can they still proceed with recovering from me?
Not always. If your DRT case is at the hearing stage and you’re talking to bank about settlement. They might not proceed with filing any more notices or sending anyone for possession. It all depends on how far your case has progressed.
5. What if my house is being auctioned off right now?
You would need to contact a lawyer right away in this situation. BK Singh Advocate can go through your notices and dates to see if we can stop the auction. Also what collateral do you have against this property. All this information can help us get a better understanding of what can be done.
6. Will my OTS Letter help stop my DRT case?
If your OTS Amount is honoured and paid. Then yes it’ll stop your DRT case because technically you no longer have a debt problem with that bank.
How it affects your DRT case will depend on where they are in the recovery process. If they’ve not accepted your settlement yet and you pay. Once they accept. Its worth noting that your loan would be closed from bank’s records but your DRT case will be proceeded with.
7. What if I don’t pay my settlement amount through OTS?
If your OTS amount is not paid. This will depend on your terms and conditions you settled with bank. Some banks might choose to cancel your OTS agreement and move forward with recovery. Where as some banks might accept your OTS agreement and allow you to pay at a later date.
8.Can a Guarantor call up a lawyer and settle there debt?
Yes sure we can help you understand your options. All you need to do is read your guaranty and understand where you legally stand.
9. Can I appeal a DRT case?
Yes. You have the right to appeal to DRAT within 30 days of receiving your DRT order. Please keep in mind section 21 of the RDB act states that there is a pre deposit required. Which can be reduced by making an application to DRAT.
10. Can a lawyer guarantee that my case will be settled or stopped?
No lawyer can guarantee you that your case will be settled and/or stopped. They can guide you in the right direction and help you understand your legal rights.
Conclusion
A pending DRT case is not the end of the world when it comes to settling with your lender. But please keep in mind that settling with bank is a LEGAL and commercial decision. Not a gentleman’s leftover lunch meeting agreement with bank.
Review all facts pertaining to DRT case pending against you, loan agreements, securities provided, payment history, terms of settlement agreed upon. Pending SARFAESI proceedings like notices for possession or auction also need to be considered when evaluating time lines for the same.
BK Singh Advocate can help borrowers, Guarantors, MSME, business owners and others who own properties involved in a bank recovery suit, to review all documents and provide legal assistance when it comes to DRT cases in Gurugram, SARFAESI disputes, loan settlements and OTS.
