Legal Question in Banking Law in India

Ipc 138

I am a small businessman. I have taken some business loan and personal loans from few privet banks. Till now I have continued the repayment. But due to bad running of my business it will be impossible to repay. From starting I have continued the payment, the EMIs varies from 24 EMI to 6 EMI. I want to repay the only capital amount with adjusting my paid EMIs.

My questions are:

(i) How it is possible to pay the only capitals?

(ii) If the bank denies my proposal and the post dated cheque will bounce, in that case may the banks issue 138 against me?

Kindly help me. Thanking you.


Asked on 2/26/09, 1:41 pm

3 Answers from Attorneys
Pranav Desai PD Legal & Associates

Re: Ipc 138

I believe the best manner to handle this issue is to speak to the bank authorities to reschedule your EMIs. However, it will be difficult to pay only capital without paing interest because the same will not be accepted by bank.

2) Yes, if cheque bounces bank can fie a complaint for offence u/s 138.

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Answered on 2/28/09, 11:54 pm
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Ipc 138

(i) not possible.

(ii) yes.

(iii) no help may be possible; except that you may consider declaring bankruptcy.

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Answered on 2/26/09, 6:03 pm
J. Radhakrishnan independent Practice

Re: Ipc 138

1) Unless the Bank agrees to reschedule repayment, it is not possible.

2)In the event of the Bank not agreeing to your proposal, the Bank can certainly have recourse to proceedings under Sec.138 N.I.Act

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Answered on 2/26/09, 8:23 pm


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