Legal Question in Banking Law in India

Credit Card & Personal Loan

Sir,

In case of a default in Credit Card & Personal Loan, generally Bank do file a case after two or three years from the date of default. And by this way a person is overburdened with the several penalties & interest. That is why, an amicable settlement is also very tough at that time. Is there any defence to protect this delayed process. When a case is time barred and set aside by the court in relation to the aforesaid matter. Please answer at the earliest.


Asked on 1/11/09, 9:55 am

2 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Credit Card & Personal Loan

The case is time barred, if filed after three years from the date of last transaction. May depend upon facts of each case. You should consult a local Advocate with your documents for proper guidance.

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Answered on 1/12/09, 8:53 am
J. Radhakrishnan independent Practice

Re: Credit Card & Personal Loan

If a case is time barred, the court will dismiss the suit. The question is inconsistent. Normally bank files suit for recovery within the period of limitation after exhausting demands, personal approaches etc. A debtor is necessarily has to bear the burden of interest and costs of suit if he defaults. It is better to approach the bank for an amicable settlement. If the Bank does not give concession, a request be made to refer the matter to conciliation or Lok Adalat. There also if he does not succeed in getting any relief, he has to face the consequences of his default. That is all

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Answered on 1/11/09, 11:23 am


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