Loan recovery summons from Bank

they have lost limitation to sue you.

whether this is govt bank?

Issue a Legal notice, informing facts on record supported by the one time settlement correspondence and warn him that any further correspondence with guarantor has to be immediately stopped and demand No due certificate.

Ask the guarantor to seek information under RTI Act, for all the correspondence made in between borrower and bank after the account was treated as NPA, and a statement of such account. Specifically demand and get latest AOD on record.

Decide only after getting the fact and version of Bank .

(Almost all banks are extra careful and obtain blank AOD in advance and keep one AOD for emergencies and generally legal dept., before issuing such notices take proper precaution and issue notices only when the debt is within limitation period.

 Most probably it is some Recovery agency/ARC that has acquired the debt Or another establishment that has bought the debt.

If OTS was agreed upon and you paid against OTS then lender has to have statement before OTS, OTS notice/agreement, statement after OTS, and ought to supply it you.

You must also be having these statements.

If Rs.250/ were left then also lender is ought to supply it to you.

It is you that has to demand it now and contest the demand.

If NO acceptance/acknowledgment of pending debt was signed by you then it should be hopelessly time barred.

Settlement is adverse entry and lender shall keep it in record with credit bureau’s like CIBIL, EQUIFAX, EXPERIAN etc …………….

Now you and guarantor may preferably handover the matter to a very able counsel specializing in consumer matters to fetch you an order ( if possible) from court of law/DCDRF to get you  NOC and to call back delinquency from credit bureau’s.

Yes, It is

its not from any agency/agent. Its a notice directly from the bank. 

Pending debt was not signed.

Problem is I am not in the country, Bank manager is putting pressure on the guarantor and he is buckling under pressure.

Entrust the matter to a very able counsel specializing in Banking/consumer matters.

bak is prima-facie justified in extracting money from guarantor.

you may either :-

1. leave the guarantor to his fait.  the limitation of civil suit appears to have gone.
2. pay the sum and then wait for more dues to crop up.
3. wait for them to file recovery suit.
4. file consumer case.
5. file complaint with banking omburdman.

You failed to honour OTS. In such case the loan waived in OTS is also revived.

The fact of it being time barred, limits the right of bank of taking any recovery proceedings against you, that too in case the outstanding loan was not demanded by bank from the borrower . It does not bar the claim of the bank.

Bank may report the matter to CIBIL and you wil be recorded as defaulter , your CIBIL rating will come down and you will not be able to take any loan in future.

S better approch bank and sort out he matter.