Pre-dispute settlement

Rahul (Querist) 24 December 2014 This query is : Resolved
Dear Sirs,
I was using Credit Card and due to financial difficulties I could not pay a single amount last 1 year and outstanding reach around Rs.3 lakhs and I have received a letter from Bank to settle at LokAdalat. They settled Rs.1.3 Lakhs on 13 Dec at LokAdalat., and subsequently Bank advice they will issue a letter stating that the settlement amount and EMI you should pay for 10 next months and you can start. Till now I have received any letter from the Bank but I have received call from the Bank for 1st EMI.,I ask them about the settlement letter they advice that letter will issue after you pay the entire amount.
Please advice can I start pay the EMI amount or I should wait the settlement letter from the Bank before pay.
Appreciate your replies. Rahul

Follow Query

Report Abuse

Devajyoti Barman (Expert) 24 December 2014
Ask the bank to issue the terms of settlement. After full payment they issue 'No Due Certificate' but before that they can issue the settlement letter. It is mandatory and without it do not make any payment.

Rajendra K Goyal (Expert) 24 December 2014
Write to the Bank for settlement of terms.

ajay sethi (Expert) 24 December 2014
there must be order passed by lok adlat wherein they agreed to accept 1.3 lakhs . obtain certified copy of said order . make payment as per said order

T. Kalaiselvan, Advocate (Expert) 25 December 2014
Obtain a letter of settlement and restructuring the EMI after that and then decide about the EMI payments.

Rahul (Querist) 26 December 2014
Thanks for all of your advice,
Today I received a call from Bank and he inform me to pay immediately the first installment (actually first payment within 7 days from the settlement date, i.e. 20th December, and now is more than 12 days), otherwise the bank will issue Warrant against me. The settlement letter the Bank will issue after 6 months., otherwise he inform me to pay atleast 25%. AND also I have received a email from the bank 2 days back informing me to pay the settlement amount before 31st otherwise the bank will taken action against me in applicable law.
Please Advice your legal opinion in this matter. Thanks & Regards, Rahul