Interim Injunction on Possessive by Bank: Safeguarder for Borrower

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Interim Injunction is a significant tool to provide legal safeguards to borrowers who are facing imminent threat of property possession by the bank. It is a temporary order given by the court that instructs someone to do or not do something until an official decision can be reached. In India, where strict laws control banks' enforcement of security interests, it is essential that borrowers understand and make use of this legal remedy.

This legal remedy gives borrowers the opportunity to protect their rights, challenge banks' arbitrary actions, and negotiate loan settlement terms. In this article, we will discuss the interim injunction on possession by the bank, including its grounds, benefits, and complete legal procedure.

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What is an Interim Injunction?

An interim Injunction is a temporary judicial order that prevents a party from taking action until the final court decision. In the field of loan default, it prevents a bank from taking possession of the borrower's property, giving the borrower time to resolve the issue. It protects the borrower's rights while the court examines the case fully, thereby preventing irreversible harm that could occur if the bank's actions were left unchecked.

Grounds for Seeking Interim Injunction

For borrowers to get an interim injunction, they must provide specific grounds for the temporary relief they need. The following are some of the main factors the court considers:

  • Prima Facie Case: In the prima facie case, the borrower needs to show sufficient evidence to ensure that there is an actual issue that requires judicial intervention. It's important to show that the case is convincing enough to be taken seriously rather than trying to prove everything at once. Here, the borrower can show the bank’s calculation mistake, unfairly treated behaviour or inappropriate procedure; these all can be considered a prima facie case.
  • Balance of Convenience:Irreparable harm describes an injury or damage that is beyond financial repair. A borrower must demonstrate that they will suffer permanent damage if the court refuses to take action to prevent something negative from happening. For example, losing a company or a home might result in serious financial and personal issues that are outside the reach of money. Such injury must be serious and imminent, demonstrating the necessity for the court to act quickly.
  • Irreparable harm/loss:The "balance of convenience" refers to the amount of injury or hardship that each party would experience if the court decided to allow or deny a particular course of action. For example, in order to prevent a bank from seizing a borrower's property, the borrower must demonstrate that losing their home would cause them greater suffering than the bank would experience from having to wait to get their money back. The effect on the borrower's life and stability is balanced against the bank's desire to recover the debt, according to the court. If the borrower's conditions get worse, the court may decide to temporarily halt the bank's seizure of the property.

Legal Procedure for Obtaining Interim Injunction

The legal Procedure for obtaining an interim injunction is as follows:

Step 1: Filing a Suit

At the very initial stage, the borrower needs to file a suit in the appropriate jurisdiction (usually in a civil court) for an official order to halt the possession by the bank. It involves submitting a complaint and request to the court to prevent the bank from proceeding with its actions.

Step 2: Application for Interim Injunction

At the same time, the borrower also has to submit an application to request immediate help. This application helps to provide an interim injunction on the possession by the bank, it is a temporary relief. Before a decision is made on the entire case, the borrower must justify why this immediate protection is required to avoid harm.

Step 3: Court Hearing

The case will be reviewed by the court on an appointed day. The borrower must submit justifications and supporting documentation for their request for protection at this hearing. Until the entire matter is settled, they must explain why it is crucial that the court provide an interim injunction preventing the bank from seizing their belongings.

Step 4: Court Order

An interim injunction is a temporary order that the court will give if it considers that the borrower's arguments and facts during the hearing are reasonable. This order instructs the bank to hold off on taking ownership of the property until the case is settled in its entirety. It essentially prevents the bank from acting so that a fair and complete investigation into the matter can take place. While the court considers the case further, this interim order aims to protect the borrower from any possible harm or permanent consequences.

How Can Litem Legalis Help You?

Litem Legalis is a team of professional lawyers with years of experience. Our team believes you can provide complete guidance and friendly assistance through the complete procedure. Several other reasons help you to make Litem Legalis the best choice such as:

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Conclusion

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FAQ

A Mortgage Loan is a type of borrowing money where the borrower gets funds by pledging their real estate or property.

A loan is an amount of money that must be repaid over a fixed duration, usually with interest.

Eligibility for Loan Settlement is determined by the type of loan, the lender's policies, and the borrower's financial situation.

A borrower goes for a Loan settlement for several reasons, such as illness, unemployment, injury and many more.