Loan recovery

Querist : Anonymous (Querist) 16 October 2023 This query is : Resolved
I work with a NBFC in Maharahstra. We have given loans to borrowers from 30k to 50k.

We have demand promissory note and loan agreement signed. Apart from this we dont have any thing as security.

Best known to me for recovery from these defaulters is stated below:

1. Sending notices by company / advocates.
2. Filing recovery summary suits in courts

If we file recovery suits the courtfees is too high (around 5000/- for recovery amount of Rs 50,000) + advocate fees etc. On a loan amount of Rs 50,000 paying Rs 7-8k for recovery isnt possible for us.

My question is what are the other ways of recovery in low cost exp.

Can we file criminal complaint (sec 156(3)). Will court admit 156 (3) for this nature of complaint or the court will deny the admission saying this is a a civil matter.

Pl guide. Thanks.

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kavksatyanarayana (Expert) 16 October 2023
Sending legal notice and filing a writ is the best. The court fee is different from one State to state and consult a local lawyer.

Sudhir Kumar, Advocate (Expert) 17 October 2023
what criminal offense do you think the defaulters have done.

T. Kalaiselvan, Advocate (Expert) 18 October 2023
For recovery of loan you have to approach civil court only and in the process the court fee and advocate fee are unavoidable.
That is part of the suit process.
There is no reason for filing a criminal case because it is only a criminal complaint for the offences of cheating and not for recovery