Summon issued by a NBFC und sec 27 Payment and settlement act 2007

Dear Sir,
To give trouble to the borrowers the Bankers unnecessarily file an cases out of the jurisdiction. You may either settle the matter or ignore the matter till execution orders are implemented or appear and contest the case through your Advocate.

Dear Client,
Section 25 of the Payment and Settlement System Act 2007(PSSA), states that if an electronic transfer cannot be completed due to insufficient fund or if an amount required to be paid out exceeds the limit on the credit card of the payer, the payer can be imprisoned or fined twice the amount or both similar to the dishonor of a cheque under the Negotiable Instruments Act 1881. Section 25 of the Act provides that the payee, before filing a complaint under said Act to recover money, must inform the payer via a written notification/legal notice seeking payment of the dishonored amount. If the person initiating an electronic funds transfer does not pay the money to the beneficiary within 15 days of receiving the legal notice, a complaint is filed before the Court for recovery of dues/loan. Section 27 of the Act addresses offenses committed by companies. Section 27(1) of PSSA outlines that if a company commits a contravention, every person who was in charge of and responsible for the company's business at that time is also guilty and liable for punishment, provided that nothing contained in this sub-section shall render any such person liable to punishment if he proves that the contravention took place without his knowledge or that he exercised all due diligence to prevent such contravention. So, on receipt of notice under Sec. 25 of PSSA, you should try your best to negotiate the loan with the lender/financier. Even if it is not specifically mentioned in the loan agreement, lenders or financiers can take all the legal recourse available to them for recovery of the dues/debts from the defaulted borrower. You can raise your grievance against the NBFC to the regulatory authority, the RBI on the Digital Complaint Management System (CMS) Portal: https://cms.rbi.org.in/cms/IndexPage.aspx. Considering your inconvenience, you may consult and engage an Advocate experienced in cheque bounce or DRT matters at Palampur to navigate the issue in the right way. Further, a quick counseling session with a certified credit counselor can help you discover your options and choose the right path forward to settle or resolve the issue with the lender.

Dear Client,

It is critical to address the "summon" received via email from a NBFC, despite living in Bangalore and the summon being from Palampur, as ignoring it can lead to severe legal consequences like an ex parte order. This "summon" is likely not a direct summon under Section 27 of the Payment and Settlement Systems Act, 2007 which deals with company offenses related to payment systems, but rather a legal notice, a court summons for civil recovery, or potentially a summons under the Negotiable Instruments Act for cheque bounce, or an arbitration notice. Your immediate priority should be to consult a lawyer who can analyze the exact nature of the document, advise on jurisdiction issues checking your loan agreement for specified jurisdiction, and help you legally respond by filing an application for exemption from personal appearance or seeking an adjournment due to your inability to travel.

Simultaneously, ensure all payment proofs and communication records are meticulously documented, as your prompt payment of the principal and partial interest, coupled with the NBFC's lack of prior communication, will be crucial points in your defense and potential negotiation for a settlement, thereby protecting your credit score and preventing further harassment.

Upon receiving a "summon" via email from an NBFC in Palampur while residing in Bangalore, despite having already paid the principal loan amount and part of the interest/late fees, it's crucial to understand that Section 27 of the Payment and Settlement Systems Act, 2007, primarily deals with offences by companies related to payment systems, not typically personal loan defaults. The "summon" is more likely a legal notice, a civil court summons for loan recovery, a summons under Section 138 of the Negotiable Instruments Act , or an arbitration notice.

You must immediately consult a lawyer to review the specific document, determine its nature and validity, especially regarding the Palampur jurisdiction, and advise on the appropriate legal response. Do not ignore it, as this could lead to an ex parte order against you. Your lawyer can help you file for an exemption from personal appearance, seek an adjournment, and negotiate a settlement with the NBFC, leveraging your payment records and their lack of communication as a strong position, while also addressing any potential harassment in line with RBI's Fair Practices Code for NBFCs.