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Legal case on personal loan under section 25
12-May-2025 (In Cheque Bounce Law)
Settled a PERSONAL LOAN 9 months back. Expected that case would be revoked by bank as mentioned in settlement leter. Recently received arrest warrant for same legal case. Reached out bank on the matter, official reply awaited. Meanwhile, someone called me with an excuse that after settling my credit card, case will be revoked.
Case was filed for loan (as communicated by bank) which is settled. Moreover, case filed under section 25, which can't be imposed on credit card.
Please guide.
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Regards
Ms. Mehak Bhatia
Advocate
LexVisum Law Firm
Delhi
Helpful?
Adv. Mehak Bhatia
Delhi | 50+ Answers
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We can produce the documents in the court to substantiate the fact of loan being settled and despite that the banks are misusing the process of law. For the same, we have to appear before the court first for cancellation of warrants and from thereon, we can take it forward.
Helpful?
Adv. Alankrit BhatnagarÂ
Delhi | 100+ Answers
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As per your inputs, it is evident that the personal loan was duly settled nine months ago, and the settlement letter issued by the bank clearly stipulated that the legal case would be revoked. The issuance of an arrest warrant at this stage is highly irregular and appears to be in gross violation of the terms of the settlement. Moreover, the alleged linkage of this case with an outstanding credit card dues—despite the case originally pertaining to the loan—is not only misleading but also devoid of legal merit, particularly when the provisions of Section 25 (as mentioned) are not attracted in such cases. We are presently awaiting the bank’s official response; however, in the interim, it is advisable to move an application before the concerned court for recall of the warrant, and if required, approach the Hon’ble High Court under Section 482 CrPC seeking quashing of the proceedings on the grounds of settlement and abuse of process of law.
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Adv. Aman Verma
Delhi | 50+ Answers
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The situation involves a settled personal loan and a credit card case, with a new case filed under Section 25, likely related to cheque bounce laws in India (under the Negotiable Instruments Act, 1881). Since the loan was settled 9 months ago and the bank confirmed this in writing, the arrest warrant may be erroneous or fraudulent. The claim about revoking the credit card case post-settlement seems suspicious, as settled cases typically can't be reopened unless fraud or misrepresentation occurred. Section 25 of the NI Act deals with dishonored cheques but doesn't apply to credit card cases directly—it’s likely a miscommunication or scare tactic. First, verify the arrest warrant's authenticity by contacting the court or police station directly. Then, share the bank's settlement letter with the authorities to clarify the loan's status. If the new case is baseless, you can file a quashing petition in the High Court under Section 482 of the CrPC.
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Adv. Deepak Kumar
Delhi | 25+ Answers
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This situation may warrant initiating a consumer complaint against the Bank, particularly if there has been a deficiency in service or unfair trade practice. A similar issue has arisen in one of my ongoing matters, where we are already contesting the bank's actions and have secured an interim order in our favor. As for the loan recovery case filed by the bank, it can be effectively contested on the basis of the merits and supporting material available on record.
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Adv. Garima Sharma
Delhi | 25+ Answers
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