Legal Question in Credit and Debt Law in India

Dear sir,

I am from Bangalore. I was working for a company where we had a salary account of Kotak Mahindra, from there I took a loan amount of 2 lakh. I was paying my EMI as per the date of ECS. Certainly company change the kotak salary account to HDFC, hence kotak was salary account so it got close.

As on date I have paid 13 EMO's among 18 EMI's, during these periods I use to get a legal notice from the bank agency and lawer intimating me about the EMI's .

Yesterday I got a message from kotak bank to my mobile stating : "your cheque no 000012 which is been given for security purpose get bounced due to insufficient fund".

Now I want to know that bank will file a case against me and summon will come.

I want to know if such thing happen what should I do?

Is there a chance of getting arrest?

Please give me your advise sir

Thank you.

Mob- 8880065199


Asked on 2/21/15, 2:16 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

21.02.2015

Dear Sir / Madam,

Your Company changing the salary a/c of all employees from Kotak Mahindra to HDFC does not have any forbearing on your being remaining liable to repay all the EMI's on time to Kotak Mahindra. Since your outstanding loan balance with Kotak Mahindra Bank may have remain unsettled for long and your inaction to their constant reminders and notices to you, the Bank may have deposited your Security cheque for encashment. If it has bounced, the Bank will have to file a legal case under Section 138 of the Negotiable Instruments Act, 1938 for cheque bouncing. You ought to negotiate, repay and settle the outstanding loan amount of Kotak Mahindra Bank rather than waste your time and money running to the Court. If you prolong the matter in the Court, the Judge may order you to pay double the outstanding loan amount to the Bank, else face proceedings and decisions which may mean your legal arrest.

Regards,

Read more
Answered on 2/21/15, 4:04 am


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in India