In 2000 my dad had taken a salary loan from a cooperative bank he was working in. Due to personal reasons, he decided to leave the job in 2002. So, per discussion with his manager over phone in 2002, he had sent his resignation and application to credit proceeds from PF, gratutity and security deposit to his loan account and close off the loan account which bank did not do in 2002. In 2012, he came to know about not closure of his loan account from one of his colleagues. So he went to bank and discussed with chairman of the bank verbally about this case. Chairman told that time, you pay off the principal amount and settle the loan. So bank manager accepetd one cheque from my dad. My dad also filled in PF and gratutity forms. This all communication was verbal and is no where documented. Trusting the bank and chairman of the bank, my dad did not ask for the closure letter of loan account. Now suddenly in the last week after almost 4/5 years, new bank manager called him up and told that there is a huge outstanding of Rs. 6 lacs in his loan account. My dad met chairman again and talked about the problem happened. Now chairman is asking him to pay off remaining outstanding amount again with so huge interest. Though bank did not have new communication address to send him in notices, it does have my dad's cell phone number and it did not call him in last 6 years for the same. My dad has xerox copy of application he had initially sent to bank in 2003. Also there is no security with bank against this loan as it was a salary loan. My dad is also retired now and he/I cannot afford to pay such a huge amount. What should we do now? Should we file complaint against bank in consumer court or wait for bank to take up action and then respond? Also if case goes in court, what would be the worst result we will need to deal with. Please help.
