Legal Question in Business Law in India
Repayment of Loan
Loan from LICI agst. security of LIC Policy.
Loan repaid by cheque.
LICI claiming after 6 months that the cheque has bounced as it was stale. When LICI was asked to return us the bounced cheque they told that it was sent to us by ordinary post. Nothing received by us till date.
1) Who will be liable for the interest of 6 months which have passed.
2) Whether LICI is not liable to check at the time of receipt that the cheque is valid.
3) Whether LICI is not liable to return us the bounced cheque by registered post.
4) They might have lost the cheque somewhere and allegation of stale cheque may be a ploy to cover up their fault.
4 Answers from Attorneys
Re: Repayment of Loan
1)LIC
2)Yes
3)Yes Lic should return the cheque
4)May be.
Re: Repayment of Loan
You may totally justified in your place; but consider : LIC is a public body and does not stand to gain by causing you loss; If you file a case and win, the amount you gain may not be equal to the cost of litigation and time you may have to waste.
Please weigh the pros and cons. You may make a representation to LIC authorities explaining them your stand.
You may have a good chance in consumer court also.
But consider avoiding litigation, if the loss is not really that high.
LIC is still doing a better business as compared to many in the market.
Re: Repayment of Loan
Certainly LIC is responsible for their negligance. You can demand the same.There may be some terms in this regard while taking loan.
Re: Repayment of Loan
You are right in your decision, but keep in mind that action may be costly rather silence. You may take legal action but silence is better than agitation.
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