Personal loan time barred
Ratna Kumar
(Querist) 21 October 2009
This query is : Resolved
One of my friends took a loan from a MNC Bank in 2000. That MNC bank was absorbed by another bank.Friend repaid nearly 50% of the principal amount through PDC.
Due to unemployment , he could not pay the same . After he got a job in 2002 , I paid some installments and last installment was paid on November 2003. No action was taken by a bank under 138 of NI. The PDC had been lapsed.
Now he is working in a company in Kerala whereas he family lives in Chennai.
Now , bank is traced his details tru job sites and started to give trouble asking him to pay the balance dues.
He told them that though the debt is time barred , he is ready to pay a sum on ethical grounds as a one time settlement.
The bank is threatening to file a case.
Is it possible to file a criminal case for the civil offense ( as this has been referred by Justice Raghupathy in 2008),
What is the remedy available to my friend?
Can any Chennai Lawyer wants to help him to come out of this issue?
Regards,
Kumar
adv. rajeev ( rajoo )
(Expert) 21 October 2009
Off course it is time barred debt, but at the time of granting the loan bankers will get the signgture of the loanee on blank AOD i.e., acknowledgment of debt form, now they use it.
Sudharsan.m
(Expert) 21 October 2009
they cannot do anything since SC itself said these kind of matters it is purely a civil suit and if you want you can file a criminal case against the bank officials in the police station. i am practising advocate in madras high court, for further enquiry contact me through my mail id-sudhan6284@gmail.com
Adv Archana Deshmukh
(Expert) 21 October 2009
It is a time barred debt. They cannot do anything legally.
joyce
(Expert) 21 October 2009
file a complaint against the bank for harrashing you
Y V Vishweshwar Rao
(Expert) 21 October 2009
I agree with learned frineds and it is civil matter and time barred claim.
Any proceedings will be on legally maintainable / acceptable Claim !
KASI NAGESWARA RAO
(Expert) 22 October 2009
better to send notice to bank abt harassment or file a private complaint in court for safe side.pls let me know the amount,then we can guess whether the bank can take action or not.mostly after lapsing of this many years bank may not file any civil case
Vinod Singh Tomar
(Expert) 22 October 2009
He told them that though the debt is time barred , he is ready to pay a sum on ethical grounds as a one time settlement.
I differ in above pragraph.
Please advise your friend not to acknowledge the loan for making payment even on ethical grounds. If accepted, revival of limitation period will take place. Instead, advise your friend to file criminal complaint before Judicial Magistrate and for deficiency in service and for the damages in District Consumer Forum
r sugumaran
(Expert) 23 October 2009
A suit for recovery of money can be filed only within a period of 3 years and prosecution based on PDC can be filed only if the same complies with the requirements of the NI Act. Hence, do not commit in writing to pay anything even if you are willing to pay on moral grounds unless you get a express settlement letter from the Bank. You may also file a criminal case against the officials but you may have to attend the court on and off.
Ratna Kumar
(Querist) 28 November 2009
Dear Professional Colleagues,
As I have stated earlier, the multinational bank is now raising the issue for collection of time barred personal loan through state legal council , Chennai.
I request the professional colleagues to exchange their expertise on the issue.
Now , the multinational bank has made an application through State Legal Advisory services and State Legal Advisory service has issued a notice to appear.
My legal question is
1.Whether a state legal advisory council has the authority to entertain an application for compromising in a debt collection which is time barred .( Last payment made during September 2003).
2. Is it legally required to file before the State Legal Council any reply / objection or can we ignore the state legal advisory council as any recommendation made by State Legal advisory council is not recognized by the court if one party object to it.
3.Is there any case law or precedents restricting state legal council to entertain such time barred debt collection .
Regards
Ratna Kumar
