What punishment is given to a personal loan defaulter by court


Sir I took a personal loan from icici bank before..after six EMI I couldn't pay further due to job loss. Bank file a case but I didn't receive any notice... Now the case is become ex parte. Now my question is what's the maximum punishment If i couldn't repay??. Will they forfeit my property?? Or they will put me to the jail?? Please advise

Answers (3)


179 votes

if the case is being heard exparte, then you can file an application for setting aside expartee order and then defend the case and ask your lawyer to file application for compromise and see if some consensus can be arrived at.
once a case is decreed, then execution will be filed wherein your property can be attached and sold if there is no property in your name then a jail term of three months might be announced.

i strongly suggest you to approach a lawyer and get the expartee order set aside and get the same defended.


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150 votes

You need to understand that ex parte proceedings are initiated only in civil cases. Normally there is no imprisonment if you have movable or immovable properties to clear debt. But you need to file an application to call the ex parte order back and join the proceedings of case. You need to defend. If you defend properly, bank may agree on a good time for one time settlement. In such an event you can resolve dispute with minimum hassle. For further inquiry you can fix an appointment for telephonic/vedio/personal conference for further advise.

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273 votes

I suppose the bank had filed civil suit for recovery. It isn’t always better to contest the same but as you told that you have been proceeded ex parte the bank may get a decree against you and will file execution for recovery of decreetal amount. In that case your property can also be attached for payment of sum and in worst case you may have to face civil imprisonment if court finds that you are intentionally not making the payment. The advice to you is to get the exparte order set aside and contest the suit on merits and also try to negotiate with bank to settle the matter.

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