Civil and Criminal cases be filed for recovery of one loan
16-Nov-2023 (In Banking / Finance Law)
I took 10 lakhs personal loan with Kotak Bank in 2013 when i was working in a private firm and in 2015 the company closed down and i lost my job and im not working anywhere till now.I have paid back the bank 8.5 lakhs in emi before i was not able to pay anymore. First they filed a arbitration case against me in the old address(they know my new address as they were collecting my bounced emi's in cash in that new ad) and got ex party order and moved to City Civil Court, Chennai and filed an EP and then only i came to know of this and stopped paying EMI's. But even when the case was on they collected 2 Emi(28726/emi) giving false promises but they moved ahead and misused my cheque which i gave during taking loan in 2013 and put it without my knowledge for 8.5 lakhs and got it bounced in Bangalore and filed a case against me in CMM,Bangalore though my residence, bank account and loan taking branch all are in chennai. Is it possible to recover through two cases for same amount?
Hi,
Two actions i.e., civil and criminal can be initiated for the same issue as the results in both are different but here in your case that after collecting the money from you they misused your cheque or cheated you by depositing the cheque. You can defend your case with all material evidence like receipts issued by the bank to prove that you have already cleared the liability and cheque was issued as security for the liability which already been cleared. You can approach the High Court with an OP to set-aside the arbitral award citing that you already cleared the liability for which the claim was filed by the bank.
Two actions i.e., civil and criminal can be initiated for the same issue as the results in both are different but here in your case that after collecting the money from you they misused your cheque or cheated you by depositing the cheque. You can defend your case with all material evidence like receipts issued by the bank to prove that you have already cleared the liability and cheque was issued as security for the liability which already been cleared. You can approach the High Court with an OP to set-aside the arbitral award citing that you already cleared the liability for which the claim was filed by the bank.
From the information presented by you, I understand that the bank had filed a civil suit and obtained an EP against you. Subsequently, the bank filed a criminal case for dishonour of cheque. Your default on repayment of the loan gave rise to a cause of action for the bank, as a result of which the bank filed a civil suit for recovery of its dues. Your cheque getting dishonoured gave rise to a fresh cause of action which enabled the bank to file a criminal case subsequently. As these two are different causes of action, I feel that the bank is well within its rights. In your own interest, negotiate with the bank for an amicable early settlement.
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