Advocate Navaneetha Krishnan T

Questions Answered by Advocate Navaneetha Krishnan T (25+ answers)

Q: Bank issue notice under section 25c

Sir I am having loan with one private institution from last 3 years & paying emi time to time but last year having stroke paralysis and I have to leave my job for that reason but still paying emi but I have missed one emi and bank issue notice under section 25c but iam in not a conditon to pay loan currently but they harrassing me

Advocate Navaneetha Krishnan T answered
If you've received a notice regarding loan default, take immediate action: respond within 15 days requesting loan restructuring. For dishonored ECS payments, Section 25(c) of the Payment and Settlement Systems Act operates similarly to Section 138 of NI Act, making it a criminal offense. Once three EMIs are in default, your account will be classified as a Non-Performing Asset (NPA). If the loan is secured by a mortgage, the bank can initiate proceedings under the SARFAESI Act (Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act) to recover their dues, which may ultimately lead to property auction. Therefore, it's crucial to address the default promptly through either payment or restructuring to avoid these serious consequences.

Q: Cheque bounce case and want to recover money

Mr. A owed me a money and he was friend of mine. So in exchange or for security purpose he gave me signed blank cheque. From last 2 months he switched off his phone and shifted his house I am unable to connect with him. What can I do now ?I gave him money in cash.

Advocate Navaneetha Krishnan T answered
When you receive a cheque, deposit it within its validity period (3 months from the date of issue). If the cheque is dishonoured, you must issue a demand notice under Section 138 of the Negotiable Instruments Act within 30 days of receiving the bank's return memo. After issuing the notice, the drawer has 15 days to make the payment. Based on the circumstances and reason for dishonour, you have three legal options: file criminal proceedings under Section 138 of NI Act (which must be filed within 30 days after the notice period expires), initiate a civil suit for recovery (within 3 years), or file a criminal complaint for cheating under Section 420 IPC (if fraudulent intent can be proved). The choice of remedy depends on the specific circumstances of your case and the evidence available.