Arbitration
ijjada sankararao
(Querist) 02 June 2013
This query is : Resolved
Sir
I am advocate for respondents. 1st respondent borrowed loan and agreed to repay emi Rs 5420 but the claimant drawn Rs 5520 every month through PDCs whether the claimant committed breach of contract. and how file objection before arbitrator. kindly give proforma for this. Can my client file a criminal complaint if so kindly guide me how to proceed.
Thanking you
V R SHROFF
(Expert) 02 June 2013
Amt will be adjusted, or accounted for. You need not do anything. At most, demand explanation why collected Rs. 100/- more..
Rajendra K Goyal
(Expert) 02 June 2013
in most of the loan documents floating rate of interest clause exist due to which EMI changes. Kindly confirm existence of such clause in loan agreement. If not found get the clarification from the loan giving institution. If unsatisfactory reply received, you may proceed legally.
Guest
(Expert) 04 June 2013
Your quesstion is incomplete. A question arises, has the lender refused to pay the excess amount than due, as drawn through PDCs, if all the PDCs have been encashed? You have also not stated the reason for initiation of the arbitration case. Still more, you have also not stated whether the lender has already encashed all the PDCs or some PDCs have been got dishonoured on the part of the respondent?
However, it is quite simple, when the borrower gave PDCs of Rs.5520 (instead of Rs.5420), how the claimant could reduce the amount at his own when presented to the bank? He would draw the amount whatever was noted in the cheque, as neither the bank could have the discretion to pay less than the amount of the cheque nor the payee could ask the bank to pay him lesser amount than shown in the cheque.
This, the case is fit neither for arbitration, nor for a criminal case for the so called assumption of breach of trust.
The excess amount can be adjusted only in the last EMI/EMIs or refund be claimed if PDCs were also given for last EMIs. However, if the lender has refused to refund the excess amount than due, only then arbitration case would be justified.
