Filing civil suit

aekansh shukla (Querist) 24 November 2015 This query is : Resolved
In a case of Finance Company , the company has executed a Loan Agreement with the customer , in discharge of liability towards the company , the customer has issued a cheque which got dishonoroured and company has filed 138 case , there is Arbitration clause in the loan agreement , is company entitled to file civil suit for recovery for entire loan amount with interest along with 138 case and without invoking arbitration and company has also mortgaged the propery of the borrower ? what Legal remedy does company have ?

1. Whether company can file recovery suit for recovery of entire loan amount along with interest ?
2. or first company has to invoke Arbitration ?
3. 138 and recovery suit are maintable together ?

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P. Venu (Expert) 25 November 2015
Arbitration as well as the remedy under the NI Act could be pursued.

Nitish Banka (Expert) 25 November 2015
genereally NI 138 will be invoked.
Thanks & Regards
Nitish Banka
9891549997

ADV-JEEVAN PATIL, MUMBAI (Expert) 26 November 2015
1) First invoke Arbitration
2) proceed with NI 138
3) If Arbitration award is not aacceptable proceed with filing suit

Rajendra K Goyal (Expert) 26 November 2015
1 &2. Arbitration clause first need to be invoked.
3. Yes.

K.S.Srinivas (Expert) 26 November 2015
Agreed with Sri ADV-JEEVAN PATIL.

T. Kalaiselvan, Advocate (Expert) 04 December 2015
Without invoking arbitration they can file a civil suit for recovery and also file 18 NI act case for cheque bounce offence.

V R SHROFF (Expert) 04 December 2015
1. Whether company can file recovery suit for recovery of entire loan amount along with interest ? ---YES
2. or first company has to invoke Arbitration ? -- NOT NECESSARY
3. 138 and recovery suit are maintable together ?--- YES

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