Personal loan emi not paid, 200 of cr.p.cr/w filed sec 25 read with sec 28 paymt settle sys act 2007

25. Dishonour of electronic funds transfer for insufficiency, etc., of funds in the account.—(1) Where an electronic funds transfer initiated by a person from an account maintained by him cannot be executed on the ground that the amount of money standing to the credit of that account is insufficient to honour the transfer instruction or that it exceeds the amount arranged to be paid from that account by an agreement made with a bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provisions of this Act, be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the electronic funds transfer, or with both.

Proided that unless the bank makes a demand for the payment of the said amount of money by giving a notice in writing to the person initiating the electronic funds transfer within thirty days of the receipt of information by him from the bank concerned regarding the dishonour of the electronic funds transfer and the person initiating the electronic funds transfer fails to make the payment of the said money to the beneficiary within fifteen days of the receipt of the said notice. It shall be presumed, unless the contrary is proved, that the electronic funds transfer was initiated for the discharge, in whole or in part, of any debt or other liability.

The Court shall, in respect of every proceeding under this section, on production of a communication from the bank denoting the dishonour of electronic funds transfer, presume the fact of dishonour of such electronic funds transfer, unless and until such fact is disproved.

—For the purposes of this section, ―debt or other liability‖ means a legally enforceable debt or other liability, as the case may be.

28. Cognizance of offences.— No court shall take cognizance of an offence punishable under this Act except upon a complaint in writing made by an officer of the Reserve Bank generally or specially authorised by it in writing in this behalf, and no court, lower than that of a Metropolitan Magistrate or a Judicial Magistrate of the first class shall try any such offence: Provided that the Court may take cognizance of an offence punishable under section 25 upon a complaint in writing made by the person aggrieved by the dishonour of the electronic funds transfer.

Therefore you can partiipate in the legal proceedings, put up your defence.

This is another regular criminal case.

However if you are willing to settle the money then the offence can be compounded and upon discharge of entire amount you will be acquitted . 

Thanks for your answers sir, however it's little hard for me to interpret or understand. Anyhow I understand that EMI NACH mandate bounce is considered as an offense and so this was filed as a criminal case, right sir? When I approached the district's free leagal aid department, she mentioned that, I have to appear before the magistarte and do as he says and that I can pay the amount of one EMI bounce as indicated in the complaint and the magistrae will give me time to pay the rest of the amount. I am worried how many hearing will there be and even after I make the full payment within the time the magistrate had given, will I be sentenced to imprisonment?

You can appear before the court on the date of hearing, express your willingness to settle the entire amount on a date fixed by you .

Once you honor the settlement conditions on the slated date, the court may direct the bank to accept the same and would make an endorsement that the entire amount has been settled hence the accused is acquitted and the case is disposed accordinlgy.

You may not be sentenced to undergo imprisonment in this situation. 

Thanks again for your answers sir. As you might have come across cases like this, can you tell me if I ask for 1.5 to 2 years to make the settlement of entire amount, will the magistrate accept it? I will have to pay atleast 2 lakhs as of today, so with other finical commitments and burdens, expecting to get a job in 2 months time, I felt it's safe to go for 1.5 to 2 years. Please advise!

Originally posted by : Paul

Thanks for your answers sir, however it's little hard for me to interpret or understand. Anyhow I understand that EMI NACH mandate bounce is considered as an offense and so this was filed as a criminal case, right sir? When I approached the district's free leagal aid department, she mentioned that, I have to appear before the magistarte and do as he says and that I can pay the amount of one EMI bounce as indicated in the complaint and the magistrae will give me time to pay the rest of the amount. I am worried how many hearing will there be and even after I make the full payment within the time the magistrate had given, will I be sentenced to imprisonment?

The District Legal Services Authority (DLSA) has guided properly to settle the matter.

- 'I have to appear before the magistarte and do as he says and that I can pay the amount of one EMI bounce as indicated in the complaint and the magistrae will give me time to pay the rest of the amount'.

Had better to follow the directions of the DLSA.

In case any issue arises regarding this, that also can be brought to the notice of the DLSA.

Thank you sir. Is it a good idea to plead/request the magistrate to give me the time of 1.5 to 2 years to settle the entire amount? would it be considered as too much time and denied? Any idea how many hearing will there be?