Legal Question in Criminal Law in India

Sir

In the year 2006 a agency of SBI credit cards has apprached me for the credit card with a limit of Rs. 25,000/-. I applied for the same and received the same in 2006. In the year June, 2007 i have spend money amounting to Rs. 23,000/- but due to some financial crisis I could not refund the money. After that I received some statements from the bank twice in a year but after for the last 2 years i did not received any thing from the bank. Now some collection agency approached me on 24/4/12and said to me that I have to pay an amount of Rs. 1,18,000/- ( inclusive interest and principal) for using credit card. I said them to settle the case and waive me the interest as much as possible so that i will make the payment, but instead they told me to deposit Rs.1,1,8,000/- or face legal action u/s 420/406 of criminal act.

I want an expert advice whether bank can approach the criminal court against a defaulter of credit card and whether the crimianl court accept this purely civil case in court for trial. I also want to know what is the time limit in which a bank can approach the court for a legal action against a defaulter.


Asked on 4/29/12, 10:17 pm

3 Answers from Attorneys
Santosh Dash Legal Consultant

bank can sue you for the debt recovery and seems yr case is not a criminal case (on the front). Statue of limitation depends on the last date of your payment/ any acknowledgement over mail etc

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Answered on 4/30/12, 12:05 am
Fca Prashant Chavan Expert Edge LLP

01.05.2012

Dear Sir / Madam,

A credit card under the Negotiable Instruments Act is similar to a cheque when it comes to non-payment. A cheque bouncing case u/s 138 is a criminal offence, and the same principle applies to non-payment on a credit card since the acceptance of the liability is specific and unconditional. I have already told you that the bank is required to maintain records for 8 years. So anytime during this period, your recovery matter can be pursued by the bank on recommendation of recovery of dues by the auditors.

You can mail me for any on-line legal advice at [email protected]

Regards,

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Answered on 5/01/12, 11:05 am
Shrichand Nahar S.V.Nahar, Advocate

May be.

Check terms of credit card and facts alleged by bank.

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Answered on 7/14/12, 3:58 am


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