Section 25 case due to non payment of the EMI. Don't know what to do

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First of all, do not ignore the summons – you must appear before the court on the given date either personally or through a lawyer, otherwise the court may pass an ex-parte order against you. When you appear, you will get a chance to explain your financial and medical condition with supporting documents like termination letter, medical records, and current income proof if any. Courts usually consider genuine difficulties, and instead of passing harsh orders, they may allow you to settle, restructure, or give more time. You should also approach your bank or finance company and try to negotiate for a settlement or restructuring of the loan. Many times banks are ready to waive penalties, reduce EMI, or extend the repayment period when the borrower proves hardship. In your case, since the problem is due to medical condition and unemployment, it is better to submit an application to the court explaining your inability and requesting time. At the same time, if you can make even a small part-payment, it shows good faith and will work in your favour. If the financial institution is not cooperating, the court process will at least give you an opportunity to present your side and seek relief.

Advocate Sanil Sarkar LawRato