Reg credit card
Sreenivasa Rao. S.
(Querist) 24 July 2013
This query is : Resolved
Sir,
In the year 2002 my friend was using SBI Credit Card, upto 2005 he was regularly paying. In the year 2006 he stopped using and the collection agent came to settelment to clear the due, the actual due was 28,000/- he has setteled the same for 22,000/-, he gave a letter on SBI letter head that 22,000/- is full and final settlement and collected 2 cheques for Rs.11,000/- each, in which one cheque for RS.11,000-00 has been honoured and the second cheque was returned, within 10 days he has given another cheque which is honoured.
After 5 to 6 years one sole arbitrator Rekha Gupta from Delhi has sent a legal document " Compliances u/s31(5) of arbitration and conciliation act 1916 with Arbitration Case No.PA/ARB/LOT-7/23024 by paying e-Stamp of Rs.94/-.
Now What I have to do. I have the settelment letter and the cheques honored.
Nadeem Qureshi
(Expert) 24 July 2013
You have to reply of this notice/contact a lawyer to resolve this query personally with all the documents
Guest
(Expert) 24 July 2013
It is better for your friend to consult some local lawyer and show all the documents concerned with the case for further course of action.
However, I would like to caution you/ your friend that the full and final settlement is always subject to clearance of cheques. Once the cheque is dishonoured the bank cannot be held responsible for any agreement to that effect. But, if the letter of the SBI about full and final settlement has not been qualified with the condition about clearance of cheques, you can take advantage of that.
Your friend can also take advantage of the provisions of limitation act. But, if your friend do not participate in the arbitration proceeding to lodge any protest in time about claim restricted by limitation period, the arbitrator would be free to give ex-parte award. In that event, yYou your friend would not be able to defend his position.
Sreenivasa Rao. S.
(Querist) 24 July 2013
Dear Experts,
I express my sincere thanks for your valuable suggestions.
With regards,
R.K Nanda
(Expert) 24 July 2013
consult local lawyer.
Guest
(Expert) 24 July 2013
You are welcome.
Sudhir Kumar, Advocate
(Expert) 25 July 2013
while agreeing with experts I will add that The refusal to pay occurred that is the reason why bank went for settlement. There had been no civil suit within three years of refusal to pay. Now they have lost the cause.
