Legal Question in Credit and Debt Law in India

Cheque return due to stop payment

i take pl from one mnc bank in India.due to money crisis i not able to pay my emi regularly, now bank used my security cheque for payment of pl and that cheque retrun due to ''stop payment''.now what can i do.

sir bank not give me any loan recall notice etc....but they used my security cheque for full amount of loan.can they present security cheque for full amount or JUST EMI AMOUNT DUE ON EMI.


Asked on 8/13/08, 1:25 pm

1 Answer from Attorneys
Siddhartha Bhattacharyya

Re: Cheque return due to stop payment

The loan agreement plays the most important role here. I suggest first check your loan agreement and if it provides any clause for depositing the security cheque in the event of default, then the bank is on right track. Otherwise in the absence of express agreement bank can not recall in the present situation without notice. Secondly for that returned cheque you shall have to justify the ground of stop payment before the Judicial Authority if the bank prefers to move the mater there.

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Answered on 8/14/08, 10:32 am


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