Whether settlement of loan amount is possible despite criminal case in a court

pundalika achyuta bhat (Querist) 10 December 2013 This query is : Resolved
Can any financial agency which has initiated a criminal case against the loan defaulter permit settlement of the said defaulted loan during the pendency of the said criminal case?
Example: XYZ finance company/bank sanctions a loan to Mr.ABC. Subsequently when the said loan becomes NPA and the finance company/bank, comes to know about forged property documents, initiates criminal case against the defaulter. During the pendency of the criminal proceedings, defaulter applies for settlement and the finance company/bank approves the said loan settlement proposal. Is it right or wrong on the part of the finance company/bank to approve loan settlement?

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Devajyoti Barman (Expert) 11 December 2013
Yes, it can be settled during criminal case as well. Once it is settled the bank can withdraw/quash the criminal case against the borrower.

Arvind Singh Chauhan (Expert) 11 December 2013
Yes bank can withdraw case but only if it is private complaint, if it is a state case bank can't do this, so be careful about negotiation consult with your lawyer.

R.K Nanda (Expert) 11 December 2013
agree with experts.

V R SHROFF (Expert) 11 December 2013
CAN SETTLE

Rajendra K Goyal (Expert) 11 December 2013
Bank / FI can settle the outstanding.

Guest (Expert) 11 December 2013
From what you have said there should be two different cases 1.default in payments 2.forged documents. if you expect both the cases to be withdrawn if police complaint is involved Bank alone cannot withdraw the forged documents case.As far as default in payment case bank could do it.Consult your Lawyer

T. Kalaiselvan, Advocate (Expert) 11 December 2013
Bankers will be ready to accept the settlement towards their NPA, but withdrawal of the cases have to be followed up properly or else the cases will continue to be on records for prosecution.

pundalika achyuta bhat (Querist) 20 December 2013
Thanks to all of you
Pundalika A. Bhat

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