Foul play by the bank
Kvijay12345
(Querist) 03 April 2017
This query is : Resolved
My friend had applied for personal unsecured loan from the private bank. In Dec 2007 the loan was sanctioned and the sanctioned letter was issued alongwith three disbursement cheques. The loan was promised at 18% and later it was sanctioned at 20%. Hence the borrower returned all the cheques to the bank alongwith the request for loan cancellation. The bank also issued loan cancellation letter to him. But meanwhile the bank kept debiting his installments as the borrower had signed the Ecs Mandate form earlier. At the time of processing the loan the Bank also had taken six blank signed cheques from the borrower on the pretext of confirming the MICR code for the Ecs facility for repayment, and on the promise that they would either destroy the cheques or return it to the borrower once the loan is sanctioned. But the bank neither destroyed those cheques nor returned them to the borrower.
Without paying a single rupee to the borrower, the bank kept debiting the EMIs on loan till six months and finally after six months made the borrower to accept the loan. As the bank had already debited six Emis in advance and refused to refund them to borrower, finding that there was no option left, the borrower finally accepted the loan after six advance EMIs were debited. All this was done by the bank by using the same old loan documents and agreement signed in blank by the borrower in Nov.2007 and after that when the bank finally disbursed the loan in June 2008, no new loan agreement was made by the bank. The borrower was issued three loan sanction letters time to time. In Jan.2009, the borrower defaulted on this loan after paying EMIs for one year.
In 2011 the bank assigned the rights of this loan to ARC. Meanwhile the bank had misused five of those six blank signed cheques given by borrower to the bank at the time of processing this loan. The bank filled in the amount and dates and bounced them periodically from Jan. 2010 to dec.2013 without giving any notice to the borrower prior to depositing or after the dishonor of these cheques and intentionally kept the borrower in dark.
Now In sept.2016 the ARC has filed the matter in DRT by misdirecting the court that the borrower had acknowledged and admitted his liability of loan by issuing those cheques periodically for the part payment of the loan. Hence the law of limitation doesn’t come in action here. The fact is that the borrower had never issued any cheques for repayment or part payment of the loan and it is clear from the fact that the handwriting on these cheques is of some other person and not of the borrower. Also the mode of repayment was through monthly ECS. The loan amount was 6,50,000/- and the value of the dishonored cheques is 4,30,000/- The bank had never issued the copies of the loan documents including the loan agreement signed in blank by the borrower at the time of processing the loan despite of his several requests to them from time to time. The borrower has all the documentary proofs with him.
My questions are 1) Are these old loan documents including the loan agreement valid considering the fact that the borrower had returned all the disbursed cheques to the bank and after that for six months there was no any actual disbursement of the loan by the bank and also the bank had issued the loan cancellation letter to the borrower stating that the loan cancellation is under process, but still kept debiting the EMIs on loan without a single rupee being disbursed to the borrower? 2) Is this matter tenable in the eyes of law and is this case maintainable in DRT ? 3)What steps does borrower needs to take in this matter and what are the legal remedies left with the borrower against the bank and the ARC? Can the borrower make counter claim in Drt for his hardships and sufferings caused by the bank and ARC?4) As the bank never issued copies of the loan documents including the loan agreement signed in blank by the borrower at the time of processing the loan despite of his several requests to them from time to time are the terms and conditions inside the agreement applicable ? As neither the bank nor the ARC issued any notice to the borrower before depositing the cheques or after the dishonor of the cheques, is this matter tenable and maintainable in the eyes of law? Is this not against the natural law of justice where no opportunity was given to the defendant to defend himself before approaching the court? Please guide me.
Kumar Doab
(Expert) 03 April 2017
You have posted many queries and have discussed in detail.
http://www.lawyersclubindia.com/experts/Cheating-by-the-bank-634426.asp
http://www.lawyersclubindia.com/experts/Recovery-627521.asp
http://www.lawyersclubindia.com/experts/Home-loan-cheating-635311.asp
Kvijay12345
(Querist) 03 April 2017
The experts should know the facts in order to reply the querry.Hence I have discussed in detail.
R.K Nanda
(Expert) 04 April 2017
repeated query.
Dr J C Vashista
(Expert) 18 April 2017
You must be having sufficient spare time to put such a long story, which the experts (on this platform) do not afford due to their own/professional commitment.
Instead of opting for a FREE SERVICE discuss and engage a local lawyer for proper analysis, guidance and proceeding in a professional manner.
Kumar Doab
(Expert) 18 April 2017
Preferably discuss in person with a very able counsel at your location specializing in such/civil/banking/consumer matters.
