June,19,2016:
Petitioner and his son failed to repay the loan despite several reminders.
On Saturday, Madras High Court Bench at Madurai ruled that when a debtor has failed to settle the loan dues despite the reminders from the bank, then the money can be recovered from his savings bank account.
Writ petition which was filed by a retired TNEB (Tamil Nadu Electricity Board) employee, who in his petition sought to restraint a nationalised bank from recovering farm loan due from his pension amount in the savings bank account was dismissed by Justice M Venugopal.
High Court observed that bank had a right in recovering the amount due from the savings bank account as per the mandate given by him at the time of availing the loan.
Justice M Venugopal expounded that since the petitioner and his son despite several reminders failed to repay the loan. After the failure to repay, the loan became a Non-Performing Asset, the bank was rightfully constrained to explore other possibilities of recovering the amount as per the loan agreement.
The Court further enunciated that it was duty of the petitioner and his son to repay the loan installments. Thus they could not wriggle out of the situation.
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