Kanchan Kumar (Owner) 10 January 2010

ECS bounce, but repaid later , still summon issued

Hi,

I have taken a loan from bank. EMI for that is supposed to be paid by ECS on 6th of every month. ECS for July'09 was returned unpaid on 6-July-09 due to in-sufficient funds - as my business is facing heavy losses and hence funds problem.

Bank issued notice at my residence address on 11-july-09, which was returned un-delivered on 18-July-09 (as during the day I am at office). I was not even aware of the notice being issued.

I made re-payment towards this EMI in two parts (on 29-Aug-09 and 14-Sep-09). However, to my surprised I received summon from court for this ECS bounce under section 25 of Payments and Settlements system act 2007. From this summon, I came to know of the dates of issue of notice.

If the payment for the bounced EMI has already been made, though after the expiry of date mentioned the notice - is the case filed by the bank still valid? What should be my defence?

For your information, I have been making payments to subsequent installments after that as well.

Thanks for your quick help.

Kumar

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7 Replies

Kanchan Kumar (Owner) 10 January 2010

To add to my earlier post - the summon is dated 29-Dec-09 (calling for appearance on 15-Jan-10) - 3.5 months after I paid repaid the bounced EMI.

Thanks again.

(Guest)

You may engage a lawyer and file in the court a statement of your A/c. showing proof of payments to the Bank and further make a submission to the court that the case may be dismissed as you discharged your liability since the repayment was done quite earlier to receiving first notice itself and the Bank has unnecessarily and without a cause of action filed a complaint against you.

(Guest)

plz read "summon" instead of "first notice" in my above reply.

Kanchan Kumar (Owner) 10 January 2010

Thank you Mr Rao for your quick advice - however, a clarification:

Nnotice was issued on 11-July, as per that notice, I should have made payment by 4-Aug-09 and I made payments on 29-Aug-09 and 14-Sep-09 which is after expiry of date as mentioned in the notice

Though I have not seen the notice myself, but these are the details given in the compaint filed by the bank as enclosed in the summon sent to me by the Court.

Thanks

Kumar

Kanchan Kumar (Owner) 10 January 2010

Thank you Mr Rao for the clarification.

Kumar

PJANARDHANA REDDY (ADVOCATE & DIRECTOR) 10 January 2010

ONCE U PAID THE NOTICE AMOUNT,HENCE NO CASE. U CAN SEND REPLY TO THE NOTICE TO THE BANK, TOWITHDRAW THE CASE. IF NOT ,THEN ENGAGE AN ADV.

Kanchan Kumar (Owner) 10 January 2010

Thank you MR Reddy.

I never received the Notice, and have only recieved the Summon which has the details of the notice sent. Also, time is too short to send the reply to bank and asking them for withdraw - as the date for appearance is on coming Friday - hence I think, I have no choice but appear and produce the details to the court that the summon was case was un-called for.

Kumar