Legal Question in Criminal Law in India

Hi,

As far as the Bank is concerned, you are the Borrower and they have nothing to do with your Uncle. To give you a full and final opinion in the matter would be difficult without seeing the Loan Documents you had executed, as then only it can understood as to the Securities you had furnished to the Bank at the time of taking the Loan. It is not mentioned as to the nature of the Loan and the purpose for which the Loan was granted. The Loan would have been given to you only based on your profile and on the Bank being assured of your means to repay the Loan.

Presuming that no Collateral Security (it is quite unlikely) was given to the Bank and only 60 cheques were given, if so, the Bank may present the Cheques and on it getting dishonoured they may initiate Criminal action under Sec. 138 of the NI Act and also filed Civil Suit against you for recovery of the Loan dues.

From the Notices received by you, you may verify what it is mentioned about how they propose to initiate recovery proceedings, that would give an idea of the Securities available at their disposal and their likely course of action.

As regards RBI, the Reserve Bank as a normal procedure would be provided by the Bank, the details about your Loan default, which would go into the databank for others to access this information, when you approach any other Bank, etc. for availing Loans. Beyond this RBI has nothing to do with the recovery process, presuming that you are not their Employee.

Your legal recourse would be to approach the Bank and try for some concessions, then somehow repay the said amount or get them to agree for providing you fresh instalment schedule and later you can try to recover the paid amounts from your Uncle depending on the Documents you would have on hand to establish that the beneficiary of the Loan amount was your Uncle.

Please be guided accordingly.

Shaji.K.N

[email protected]

The Bank may file a recovery suit against you before the D.R.T.