S. 420/406 for Credit Card Default
Rima
(Querist) 10 February 2011
This query is : Resolved
My question is whether the credit card company file a case under section 420/406 IPC against the defaulter?
Even after passing of 7 long year from the default, when the debt it self is time barred?
Need seniors view on the point of law to tackle such a kind of case.
Any relevant case law citation in this matter?
Additional fact: Client wanted to pay the actual debt (without interest and penalty) long time back but the company refused to accept and settle the matter.
Parveen Kr. Aggarwal
(Expert) 10 February 2011
No. In case of non-payment of credit availed by a customer to the creditor company the offences mentioned above are generally not attracted. There is neither any breach of trust nor cheating unless proved that the intention of the customer was dishonest from the very beginning.
Advocate. Arunagiri
(Expert) 10 February 2011
no case under 420 or 406 for credit card default.
Amit Minocha
(Expert) 11 February 2011
it would not pass the test of time and is a mere threat tool used by the bank. You must have paid some payments during use of card so if there are any dues now it is a civil matter and no crime is involved at all.
Deekshitulu.V.S.R
(Expert) 11 February 2011
Criminal case will not come into picture at all. It is an abuse of process.
Nextly when the debt is bared by time no action lies.
It is said that if the debt is barred by time " the right to take action in court is lost, but the right to recover otherwise is not lost" some thing like a right of lien
NOTTAM VENKATASAMY
(Expert) 11 February 2011
CREDIT CARD MATTER IS NOT IN A CRIMINAL CASE, YOU CAN FILE IN CONSUMER COURT AND AVAIL REMEDY
Rima
(Querist) 11 February 2011
Thanks a lot..
