03 April 2009
clients hypothecate their movable assets against the loan they are receiving from the lender. In case of default, what is the procedure to be followed by the lender(company)to collect the OD using that hypothecation given by the client?
03 April 2009
First the Bank / concerned company will issue a notice to the client to repay the dues immediately or giving short notice by registered post.
If there is no any reply then they can attach the property and seize the same.
Earlier they have to go to court. But now they can proceed directly with the help of local police.
CAclubindia
