Legal Question in Credit and Debt Law in India

One of my relative has taken personal loan of rupees 800000/- before 18 months and had given ecs from bank to pay emi. He had made almost all emi payment regularly however, due to financial problems, he could not pay last 3 emi. He could also not make payment of his other credit card payment for last 8 months worth around 12 lacs rupees due to his severe financial bad condition. Because of constant collection agent and recovery agent team follow up, he had to leave the current residence and vacate this residence for last two month. Recently he has received legal notice from one bank for payment in 7 days which period is over. This notice was sent through advocate. In this notice it is stated that bank would file case and get relief for payment and also for interim security or collateral.

He wants to know the following questions ?

(1) whether this dishonour of ecs emi would be defined u/s 138 / 139 of negotiable instrument act ? If yes, how to overcome this situation as presently he is in very bad financial condition.

(2) May i know what would be his legal condition as he is not residing at the registered address updated on banks record ( from whom his credit card is outstanding ) ? May I know what kind of legal action would apply in this case like criminal case, civil case, police complaint or others ?

(3) whether this legal notice sent by bank needs to be replied or not ? how ? is it necessary to send this through advocate only ?

Please reply and suggest solution to overcome this situation and advise to email id [email protected]

1 Answer from Attorneys

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