Can loan be settled in case of fraud done to the party
Querist :
Anonymous
(Querist) 16 April 2024
This query is : Resolved
If a person has taken loan and infused it in the startup, and the partner does fraud and takes all the money and disappear. Can the victim approach the banks for relaxation/moratorium period until the culprit is caught and recovery is done from him.
If FIR is launched can the property of the culprit be seized and recovery be made by the Police/court?
kavksatyanarayana
(Expert) 16 April 2024
You can file FIR before the Police Station concerned.
T. Kalaiselvan, Advocate
(Expert) 16 April 2024
The lender bank cannot offer moratorium until the culprit is caught and recovery is done.
The bank will take legal action for recovery of loan amount if the loan repayment is defaulted.
The police can take legal action to punish him but they cannot recover the amount nor they can attach his property.
You may have to appraoch civil court for recovery and attachment of his property provided you have proper evidence for this
Sudhir Kumar, Advocate
(Expert) 18 April 2024
Bank is least likely to help. You took and loan and allowed it to be swindled by other.
On the contrary it can be alleged that startup was a sham and purpose was to take loan create story of swindling of money by partner.
SIVARAMAPRASAD KAPPAGANTU
(Expert) 20 April 2024
What exactly do you mean by Partner? Is yours a registered Partnership? Bank has nothing to do with a fraud committed against you, that too, by your Partner. Having taken the loan from the Bank, you are liable. Approach the bank with genuine and full particulars along with the FIR lodged by you against your Partner who duped you. Your filing FIR Police/Court recovering the amount from the Partner is an entirely different matter and not connected to the bank. The bank may consider rephrasing the loan purely/strictly depending upon the merits and security offered by you. It is strictly the discretion of the Bank and cannot be claimed as a matter of right.
Whether assets of the Partner can be attached? If the Partner who duped you, signed the loan papers along with you while taking the loan from the Bank, and/or both of you are in Partnership, and if so the bank can attach his assets also before judgment for recovery of its dues, if and when the bank decides to take the recovery step of filing a suit. If it is easier for the bank to proceed against you only instead of the partner, the bank is well within its rights to do so.
P. Venu
(Expert) 27 April 2024
The person who has taken taken can initiate a separate action, civil and/or criminal, against the other person/partner who has allegedly committed the fraud..
