Criminal Trident Pack: IPC, CrPC and IEA by Sr. Adv. G.S Shukla and Adv. Raghav Arora
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evidence act

Querist : Anonymous (Querist) 08 September 2010 This query is : Resolved 
a person has taken loan of Rs.---/ from the co-operative bank. he has paid regularly some installments but the bank does not provide account statements. then after party has stoped to pay the installments. the co-operative bank has filed recovery suit in tribunal. he succeeded and thenafter filed special execution petition in a Civil court. during the pendency of this petition, the bank called to the party and told to pay some of rupees by way of settlement with the bank. The bank has also issued a "No Due certificate"and closed the loan account. But right now bank said that the No Due Certificate is issued by mistake.so it has no legal evidentary value. party must have to payment the rest of amount ot the bank.

My query is that once a No due certificate issued by the bank voluntarely, in that case whether the bank can cancell it?

if account of the party is closed by the bank then after, can the bank again open the accoun in the name of party without informing to the party and can also debit the amount?

what remedy is available to the party, when execution petition is pending in the Civil Court.
s.subramanian (Expert) 08 September 2010
A loan account once closed cannot be reopened without the knowledge and notice to the borrrower. But the issuance of the no due certificate alone cannot prove discharge of the dues. You must have receipts for payment of the loan dues. You are entitled to ask for the certified copy of the account extract. With these documents only we can decide whether the loan has been fully discharged or not. if there is any error on the part of the bank,you file proceedings before the arbitrator under co=operative societies act and seek redressal. Civil courts have not jurisdiction in such matters.
Uma parameswaran (Expert) 09 September 2010
I am also having the same view as above.


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