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Pre-cognizance notice issue have filed an IP in court


08-Jan-2026 (In Recovery Law)
I lost money in my business 6 months ago. I have been making payments correctly until last month. I am unable to pay.I have filed an IP in court and I got an IP number also. But I received pre-cognizance notice for bank side. I need clarification. And I am not submitting any cheque.
Answers (1)

Answer #1
829 votes
Merely defaulting in loan repayment due to business loss is not a criminal offence. Since you have already filed an Insolvency Petition (IP) and obtained an IP number, the same must be brought to the notice of the Magistrate and the bank. A pre-cognizance notice only means the court is examining whether any criminal offence is made out. If no cheque has been issued and dishonoured, Section 138 NI Act does not apply. Civil recovery, SARFAESI, or insolvency proceedings are the correct remedies for banks. You should file a detailed reply to the notice and seek protection based on the pending IP.
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