I have a query regarding NPA of CC Account. I have a CC account of Rs 25.00 Lakhs. against a property given as a colateral in the name of partnership firm. The Accoount was declared as NPA in September 2013. I had received a notice under SARFASI ACT in April 2014. But I requested bank in writing to give me time of 2 months to repay the amount. But I failed and was not able to repay to the Bank. I tried to sold out the property and pay the amount to bank but was not able to do so. Not getting any buyer. Now the outstanding amount has beocme Rs 34.00 lakhs. I am plannng to handover the possession of the property to the Bank. Please clarify the following points after I handover my property to the Bank. a. Bank will continue to charge interest till they sell off the property and get the amount or it will charge interest till I handover the possession to them. b. Incase the amount recovered from selling off the property is less then the outstanding amount, what will happen?? c. Is there any liability of the partners incase of shortfall???
CAclubindia
