Non-payment of personal loan due to unemployment
Priya Singhal
(Querist) 31 October 2012
This query is : Resolved
Hello
I had taken 2 PL's from Citibank & HDFC Bank in 2006. HDFC loan was for 4.95 L and I repaid 21 installements and then in 2009 due to recession i lost my job. I only found a job in august 2011 but I lost that too due to Slip disc problem in Feb 2012. Now the bank people are asking for the loan back. Though I have explained the situation to them and told them I can start paying once I get a job they are not willing to understand and keep harassing my in-laws. I really cannot afford to go for 2-3 installment settlement as I do not have that kind of money. Neither do I have properties or gold which I can sell and make the payment. I told them that they can take legal action but they refuse to do that also. Please help. I want to go in for a long term installment plan to repay the loans.
Though the loans were taken in Tamilnadu I am now settled in Gujarat. Can we fight the case from here or will I have to go to chennai for that?
Regards
Priya
Advocate M.Bhadra
(Expert) 31 October 2012
Send a letter to the higher authority of the said bank requesting them to re-schedule the EMI for long term period,generally Banks does not prefer to file a suit for recovery of personal loan.To restrain from harassing by the bank's agent you can file a suit for Declaration and Injunction in Chennai (not Gujrat)where you can get enough time to re-payment the loan.
Ms.Nirmala P.Rao
(Expert) 31 October 2012
Dear Client,
You can contact Bank's Ombudsman after giving one months notice to your Banks, who lent you money. The Bank's Ombudsman may AMICABLY DECIDE YOUR REPAYMENT PLAN ON YOUR TERMS SINCE ONLY PAYMENT WOULD BEE DELAYED BUT THEY ARE SURE TO GET BACK THEIR LOAN. Or, IN THE ALTERNATIVE YOU CAN FILE A PAUPER SUIT in a/District Court IN WHICH CASE AFTER DUE INQUIRY IN TO YOUR ASSETS AND LIABILITIES THE COURT MAY APPOINT A RECEIVER/LIQUIDATOR TO DISTRIBUTE YOUR ASSETS TO THE EXTENT THEY ARE AVAILABLE TO YOUR CREDITORS AND DISCHARGED YOU FROM LIABILITY TO TH Banks IN RESPECT OF YOUR LOANS FROM THEM.m
Ms.Nirmala P.Rao
Legal Expert
Santosh Goswami,Advocate
(Expert) 31 October 2012
Settle the loan on principal amount if you have, or ignore it for time being. Give a police complaint if they r harassing you.
basavaraj shiromani
(Expert) 31 October 2012
You please watch them, what steps they are going to take against you.
c.p.s. ramachary
(Expert) 01 November 2012
Settlement is discretion of the banks even though it is best solution. Even if the banks agree for settlement they may not give you sufficient time to pay the debt and close the accounts. Re-scheduling of the bad loans may not be possible as the loan accounts continue to be NPAs in the books of the banks even after rescheduling for which the banks may not agree as no purpose would be served by rescheduling NPA accounts.
Unless the banks choose the place of suing you in Gujarat, you have no alternative except to attend Chennai courts as lending has taken place at Chennai (cause of action).
Sec 10 of the Provincial Insolvency Act, 1920 exempts corporations or companies from being proceeded against. Hence you cannot file insolvency petition. The question of filing 'Pauper petition' does not arise at all.
