Contempt of court

Dr C Suresh (Querist) 08 August 2014 This query is : Resolved
Bank files cheque bounce cases using security cheques after declaring borrower in default and NPA since June 2001. Met Mag and High Court acquit by stating that borrower is not in default and there was no enforceable debt. Judgment attained finality. The bank then using the same default & NPA date of June 2001 file a claim in DRT ignoring the High Courts judgment. Does this come under Contempt of Court for ignoring and undermining the authority and judgment of Hon High Court?

Follow Query

Report Abuse

Devajyoti Barman (Expert) 08 August 2014
138 proceeding and drt proceeding are separate legal recourse and both or one after another can be resorted to provided the mandates of DRT Act is followed.

Dr C Suresh (Querist) 08 August 2014
Sir my query is that after a High Court has found that by June 2001 the borrower is not in default and there is no enforceable debt then can the bank file a claim using the same NPA date of June 2001

Advocate. Arunagiri (Expert) 08 August 2014
The magistrate would have held that the cheques were issued as security, which would have been issued even before the payment from the bank. So, in the eye of the law, the cheque is issued when there is no enforceable debt. So, the accused can be acquitted on this ground.

But, the fact of disbursement of loan remains constant. For collection of the loan the bank can go for DRT.

Dr C Suresh (Querist) 08 August 2014
Sir the 138 case was dismissed because the borrower had actually prepaid in excess but the bank didnot give proper credit and the High Court had found that there was no enforceable debt as of June 2001. The same date of June 2001 as default is again being used in the DRT

DEFENSE ADVOCATE.-firmaction@g (Expert) 08 August 2014
DRT in fact is not court and earlier appointments were not judges . The mandate is to recover dues of banks so such things happen.

You show in your counter all specific details of the loan account and repayment supported by HC order.

You may have to go DART if DRT may go against you since at higher level the bench is from juditial side.

ajay sethi (Expert) 08 August 2014
contest your case before DRT on merits .the order cited by you , recovery proceedings filed in DRT has to be seen to advice .