default in loan

chirag patel (Querist) 07 February 2011 This query is : Resolved
in the year 2008 i had taken loan from icici bank and given two cheques as security. i had paid only two instalments and defaulted afterwards. two years have been passed i have not made a single payment afterwards...what can a bank do now..........they have not presented my cheques till date in the bank and not taken any action for sec. 138 also...............what do i think.....

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Parveen Kr. Aggarwal (Expert) 07 February 2011
Once you have taken a loan, you must repay the same to the bank.

The bank may avail any of the remedies available to it under the law, e.g. filing a civil suit for recovery, filing a complaint under section 138 of the N. I. Act after presenting the cheque and after its dishonour, realise the property having charge/mortgage in favour of the bank.

Advocate. Arunagiri (Expert) 07 February 2011
If the cheques are undated, the bank may use it at any point of time.

SANJAY GUPTA (Expert) 07 February 2011
you must contact bank for settling the matter and bank may consider the same and give you a lucrative offer for the settlement, otherwise bank may take any action civil or criminal against you for the recovery of the same.