Legal Question in Banking Law in India

Dear Sir,

I am working with a finance company as credit Manager -SME loan division, where company had finance a loan amount of Rs-25 Lacs to the customer but customer is paying every Emi after emi got bounced from the bank, can we file the case against him if he will pay the emi but not on commicement date.

2nd he is not paying Emi from last 01 months after the emi got bounced how much time it will take to recover the amount from the customer, customer is having good propery to repay the loan can we have one more option to sale out his property and take Principal amount.

thanks in advance


Asked on 9/01/09, 9:19 am

3 Answers from Attorneys
RAJIV GUPTA (Cell: +91 9811284735) [email protected]

you can file a complaint u/s 138 of negotiable instruments act against the accused and also file a civil suit u/o 37 of cpc for recovery of amount. once you get a decree for the said amount, you can initiate the proceedings for attaching his property.

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Answered on 9/01/09, 12:41 pm
KAMAL GROVER

U can file complaint u/s 138 but within one month it is mandatory to send legal notice, coz one month has already lapsed so you have to present the cheque again and after bouncing you have to do the work in 30-15-30 days like legal notice , 15 days time then within one month case. You directly cannot sale his property. It is also suggested that take the regular servises of any lawyer or appoint any lawyer for recovery else this type of questions will arise day to day life for a finance company.

Good Luck

[email protected]

M:09814110005

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Answered on 9/01/09, 2:39 pm
J. Radhakrishnan independent Practice

If emis are not paid on due dates, and if there is a clause in the loan agreement that if there is default in payment of even one or two emis on due date(s) the financier can recover the entire balance of the loan outstanding, then on default on the due date, the company can file civil suit for the entire loan outstanding with interest and attach his properties in execution of the decree

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Answered on 9/02/09, 1:59 am


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