Legal case - loan FIR
2 months ago
Hello,
I want ask about loan FIR.
I have few personal loans and credit card bills due. Due to job loss I'm failing to pay the dues. I have come back to my home town. I'm responding to banks and collection agents calls and messages. I have informed all the bank's about my situation on email. Can they files a case against me under sec 420 or any IPC? I'm getting messages from the legal team of banks.
A.Dear Client,
Both credit card dues and personal loans are considered debt and once the repayment of a loan stops or bounces for consecutive 3 installments, the Bank initiates a routine course of action for recovery of the loan from the borrower marking both the loan/debt as NPA. Accordingly, the Bank sends notice to the Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, the Bank started the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower following the provision under the SARFAESI Act, 2002 and obtaining the order of Debt Recovery Tribunal directing attachment of secured assets of the borrower. Moreover, legal actions may also be taken against the borrower including filing a civil suit in court or initiating criminal proceedings against him. As per sub-section (2) of Sec.13 of the Act, a creditor/Bank is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt or any installment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset(NPA). If the borrower fails to discharge his liability despite the service of notice, the creditor/Bank is free to recover the debt through the modes prescribed in sub-section (4) of Sec.13 of the Act, such as taking over possession of the secured assets of the borrower, taking over management of the business of the borrower etc. In this context, filing the criminal suit under Sec.420 IPC for recovery of debt is irrelevant. So, on receipt of the notice from the Bank under Sec.13(2) of the SARFAESI Act, 2002, you need to hire the service of an Advocate to handle DRT cases in the right way.
Both credit card dues and personal loans are considered debt and once the repayment of a loan stops or bounces for consecutive 3 installments, the Bank initiates a routine course of action for recovery of the loan from the borrower marking both the loan/debt as NPA. Accordingly, the Bank sends notice to the Borrower asking him/her for repayment of the entire dues lying against your loan offering suitable terms. In the absence of any response from the Borrower, the Bank started the routine process of action prescribed under relevant laws for recovery of debt lying outstanding against the Borrower following the provision under the SARFAESI Act, 2002 and obtaining the order of Debt Recovery Tribunal directing attachment of secured assets of the borrower. Moreover, legal actions may also be taken against the borrower including filing a civil suit in court or initiating criminal proceedings against him. As per sub-section (2) of Sec.13 of the Act, a creditor/Bank is required to issue a notice in writing to the borrower to discharge his liability within sixty days of the notice when such borrower has defaulted in repayment of secured debt or any installment thereof, and his account in respect of such debt is classified by the secured creditor as non-performing asset(NPA). If the borrower fails to discharge his liability despite the service of notice, the creditor/Bank is free to recover the debt through the modes prescribed in sub-section (4) of Sec.13 of the Act, such as taking over possession of the secured assets of the borrower, taking over management of the business of the borrower etc. In this context, filing the criminal suit under Sec.420 IPC for recovery of debt is irrelevant. So, on receipt of the notice from the Bank under Sec.13(2) of the SARFAESI Act, 2002, you need to hire the service of an Advocate to handle DRT cases in the right way.
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A.Dear Client,
While they cannot file a case under Section 420 or any IPC against you, it's crucial to respond appropriately. You should engage a competent lawyer to craft a comprehensive reply. However, if there is a mortgage involved, they may have the authority to seize the vehicle or property. It's essential to address the situation carefully and seek legal advice to protect your interests.
While they cannot file a case under Section 420 or any IPC against you, it's crucial to respond appropriately. You should engage a competent lawyer to craft a comprehensive reply. However, if there is a mortgage involved, they may have the authority to seize the vehicle or property. It's essential to address the situation carefully and seek legal advice to protect your interests.
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A.No, they cannot files a case against you under sec 420 or any IPC but you should file the reply via a good lawyer but if anything in mortgage they can cease the vehicle or the property.
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