My Bank Account is freeze due to non payment of loan.

50 votes

Yes, an arbitrator can order your bank account to be frozen as an interim measure to protect the disputed amount. However, the rules regarding enforceability and whether a court order is required to execute the freeze can vary depending on your specific local jurisdiction and legal procedures.�

LawRato LawRato

920 votes

Your account cannot be frozen arbitrarily merely because of loan default. If the freeze is based on an arbitral interim order or garnishee direction, the lender must follow due legal process and cannot compel you to pay the entire amount as a condition to release your salary account. Salary is considered a livelihood amount and courts generally protect a reasonable portion of it. Since you have already entered into a settlement for payment in instalments, the lender’s demand for full payment to unfreeze the account is not legally justified. You should immediately obtain a copy of the arbitration order and verify whether proper notice was served on you. If not, you can challenge the order and seek modification or recall. You may file an application before the Arbitral Tribunal or the competent court seeking: 1. Defreezing of your salary account. 2. Permission to operate the account subject to instalment payment. 3. Protection of minimum salary for livelihood. Courts and tribunals generally grant relief in such situations, especially when the borrower is cooperating and making payments. Immediate legal action is advisable to prevent further hardship.

Advocate Pavani Kumari LawRato