Civil Procedure Code (CPC)

Loan default

This query is : Resolved 

Querist : Anonymous (Querist)
20 July 2021

I am sending a query raised by a person. Shall appreciate considered opinion of LC. In bracket I have given my feelings. Thank you. Some time back I had been interacting with LC. I am 73 now, so not active.

1. Lenders have an option to proceed with attachment of passports of defaulting borrower.

[ I feel this is in the domain of the government and lenders have no say over it]

2. Whether Lender can write to the employers of defaulting borrowers that the borrower is in default for payment of dues and may be put pressure on the employee for clearance of dues.

[ I feel this is entirely employer’s discretion unless there is a court decree]

Querist : Anonymous (Querist)
20 July 2021

shall appreciate considered opinio.n of LC forum, pl

kavksatyanarayanaOnline (Expert)
20 July 2021

Yes. Lenders now and then send the notices to the Employers if their subordinates default in loan amounts. Usually, the Employers do not deduct the amounts in the salary of the defaulted employee. They respond only to attachment orders from the competent authority i.e. court and other Employers having such judicial power.

Dr J C VashistaOnline (Expert)
21 July 2021

Lenders have no power to attach passport of defaulting borrower.
Lenders may write to employer but the employer can (shall) not act on their request.

Advocate Bhartesh goyalOnline (Expert)
21 July 2021

1 completely agree with Dr J.C.Vashista.
( 1 ) Lender has no power to attach passport of defaulter borrower.
( 2 ) Lender may write to employer for clearance of dues but employer shall not act on his request.

SHIRISH PAWAR, 7738990900Online (Expert)
21 July 2021


Yes, Lenders cannot attach the passport for recovery of dues. However, lenders cannot write to employers for recovering the outstanding dues. Lenders have to approach the court for the recovery of dues. Only in case of decree lenders can inform the employer for recovery of dues.

P. Venu Online (Expert)
21 July 2021

The loan' if defaulted, only be recovered only through the due process of law.

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