• ARC Dealing

We are a Gujarat Based Company having registered office in Maharashtra.
We took a property loan from an NBFC for the working of our factory. After proper
regularization of the account in April’ 2018, they approached to collector office in
June 2018 for non-payment of EMI’s for May/June 2018. Thus approached DRT
Court to take stay on physical possessions of properties in Nov’2018.
Meanwhile, NBFC itself went into liquidation & sold our charge to ARC in Nov’2019
without informing the court or us. We came to know only by the ministry Of Corporate
Affairs (ROC) for modification of charge on 5th Nov’2019 on our mail id from
NBFC to ARC. We have not received any information from the court or ARC Or NBFC
for such a change in charge.

Please advice.

1. How to know about the value in which ARC has brought the charge from
NBFC so we prepare for settlement accordingly?

2. From your past experience how to settle issues with ARC to collect property
papers & what haircut usually could be bargained.

3. The main fact is we want to dispose off properties to clear the amounts /
personal / guarantees after proper negotiations with ARC.
We also need a good lawyer at Mumbai to negotiate & finalize such matters.
Asked 4 years ago in Property Law
Religion: Hindu

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7 Answers

It is confidential information and would not be disclosed 

 

2)if they have any collateral security they would not settle for any amount less than value of security 

 

3) you can contact any lawyer on this website from Bombay 

Ajay Sethi
Advocate, Mumbai
97598 Answers
7900 Consultations

1. You can move an application before the said Court to direct NBFC to submit the report. 

2. Amicable settle the matter 

3. You can engage a local lawyer for settle the dispute . 

Mohammed Shahzad
Advocate, Delhi
14773 Answers
225 Consultations

If DRT passed an order against you despite of regularization of the loan then you should have challenged such order before DRAT. Did your company represent itself in DRT or was it an ex-parte order ? If it was an ex-parte order then kindly challenge that order in DRAT and raise this grievance over there and mention the status of the property there and plead for stay. Place a reasonable explanation of adding ARC as party to the appeal before DRAT. This way the ARC will themselves come up with an offer and you may take settlement on your mutual terms thereafter. In the given instance it is advisable to have negotiations only through and before appropriate Court.

 

Apart from this, ARC may not agree to return you your property, ARC may agree for settlement in terms of money however its quite a discretionary approach on part of ARC. For safety of your interest it is advisable to place matter before DRAT.  

Pooja Ashar
Advocate, Ahmedabad
237 Answers
4 Consultations

1. The value of transfer of charge to ARC has no0 nexus with the merit of your case and hence I find no reason why you should run after this information.

2. Pay the loan amount and collect your papers.

3. Since the property is charged you can not sell the property without the consent of the Bank. 

Devajyoti Barman
Advocate, Kolkata
23351 Answers
522 Consultations

1. If you have not been informed by the NBFC about the charge made against your company's property, then you are not a party to the same, however you can write or issue a legal notice to the NBFC demanding the details of the charge against the property and question their authority to keep charge against the property especially when the property is under dispute before a legal forum i.e., DRT.  

2. You have to approach the ARC with an application attaching the documentary evidences of the pending dispute before DRT.

Asset reconstruction company or the ARCs are a financial institution that buys non-performing assets from banks and help them maintain clean balance sheet and their regular banking activities.

ARCs are financial institutions that help these banks to recover their bad debts by buying it from them at negotiable prices and helping them maintain the balance sheet clear of bad debts.

Therefore you may not get any respite from ARC even if you approach them with all documentary evidences against the NBFC for this act, therefore you may stick to the DRT litigation properly.

 

3. If you have decided to negotiate with ARC, then you can approach them either individually or through corporate brokers to solve the issue amicably.

For a lawyer in Mumbai, you can look for one yourself.

 

 

T Kalaiselvan
Advocate, Vellore
87800 Answers
2365 Consultations

You can challenge the said decision of the said nbfc and seek the information through court . 

That was a illegal act done by the said company you can immediately file writ petition in that matter to seek directions to the DRT court 

Can only comment in detail if I get all other information from your goodself. 

For any assistance contact me in kaanoon on 9 a 7 g 6 g 9 g 4 e 9 g 0 f 9 f 1 a 1. Consultation applicable.

Prashant Nayak
Advocate, Mumbai
32931 Answers
209 Consultations

The lender can assign it's right to recover the loan from its borrowers to any person or entity of its choice without informing the borrower

The terms of the loan will remain the same

Coming to your queries -

1. How is that even relevant for the settlement?

2. Haircut for waiving the interest can be sought 

3. If you know any buyer then the mortgaged properties can be sold by a private treaty under an arrangement where the proposed buyer will directly pay the dues of the lender/ARC and balance remaining comes to you. This will save the expenses of public auction. 

Yusuf Rampurawala
Advocate, Mumbai
7765 Answers
79 Consultations

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