arrears of loan

Querist : Anonymous (Querist) 02 August 2011 This query is : Resolved
My friend acquired loan from a Banking company & liquidated entire amount in the year 2006.The Banking Co has served him a notice that he is in arrears of loan of Rs.67,355=00ps.He has not paid even a single rupee since July 2006.He took notice to advocate.Advocate assured my friend that Bank cannot now recover any sum from him & he should relax.He is worried and afraid of court proceedings.Plz advise w.r.law.
Thanks & Regards !

Follow Query

Report Abuse

ajay sethi (Expert) 02 August 2011
1) when your friend liquidated entire loan bank must have given a no dues certificate in 2006
2) you have stated that notice has been issued by bank that your friend is in arrears of Rs. 67,335
3) claim of bank is barred by limitation . i presume your friend has not submitted any letter or signed on any blank paper wherein you r friend has acknowledged his liability to pay ___ amount

Heaven 2011 (Expert) 02 August 2011
I fully agree with Mr Sethi but for abundant precaution a legal notice with proper explanation and evidence should be sent to the bank to put the onus upon them. If your friend remain silent in lavish hand it may imply that he may or may not agree with the bank or is any how confused. But the fact is that as you are telling there is no such concern.

Querist : Anonymous (Querist) 02 August 2011
Well friends,Thanx for taking pain & replying.But I have suspicion in mind that my friend STOPPED PAYING INSTALLMENTS TO BANK IN JULY 2006,which fact he may be concealing.He seems to have paid not even a penny to the Bank since July 2006 & now he is taking this defence.
Suppose Bank files a suit for recovery of Rs.67,335/-,WHETHER DEFENCE OF "TIME BAR" UNDER THE LIMITATION ACT IS STILL AVAILABLE TOM?
What does Law say in this respect?Citations/Judgment,if any?

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now