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suryagaurav (manager)     28 February 2018

Can non reply of notice deemed as acknowledgement of loan,

   ours is a small thrift and credit cooperative society at Delhi. Earlier directors granted unsecured loans to some members in the year 2008, and they have not paid any installment from the beginning. society is issuing demand notices to them regularly, but they are not replying.
  can we initiate recovery procedure as it seems to be outside the ambit of limitation .What should we do.
 Please Guide


 9 Replies

Vijay Raj Mahajan (Advocate)     28 February 2018

Since the loan amount cannot be recovered through civil suit because of the expiry of time limitation of 3 years, the only option left with you is to try ADR (Alternate Dispute Resolution). You can try out Mediation and Conciliation process by inviting the debtors through experts associated with ADR network for settlement of dues in an amicable manner where the principal amount can be sought without interest thereon from these debtors. Even recovery of the amount by way of easy instalment can be suggested and worked out.

1 Like

TGK REDDI   28 February 2018

The Heading and its Query are not going together.

The Reply of Shri Vijay Raj Mahajan will help you.

TGK REDDI   28 February 2018

Silence to a Notice is not a consent.

R.K Nanda (Advocate)     28 February 2018

non reply of notice means admission of its contents.
1 Like

suryagaurav (manager)     01 March 2018

Thanks for your valuable time spared for me. now, society sent notice in february 2018 also. whether it is deemed as acknowledgement of loan and we should inititate recovery proceedings.

suryagaurav (manager)     01 March 2018

Originally posted by : TGK REDDI
Silence to a Notice is not a consent.

Are you sure?


Vijay Raj Mahajan (Advocate)     01 March 2018

The person sent private notice is not under any obligation to reply so it's not binding, however if notice sent by court or arbitrator then they have to reply otherwise it will amount to acknowledgement of the loan.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     01 March 2018

Non-reply to a notice from a statutory authority need not necessarily mean an acknowledgement. But silence can adversely affect the silent party in subsequent proceedings. It can result in an ex-parte decision which may not be favourable to the party not replying.

TGK REDDI   01 March 2018

Shri Suryagaurav

Dear Sir

I shall give a few illustrations which are, however, imaginary.

1. An Advocate gives a Legal Notice.     The Party remains silent.      Based on this silence, the Court can't give a Decree.    Summons will be sent.     Case will be heard ex parte if the Party doesn't turn up.    And Decree wiil be passed relying on evidence, not on the silence.      Defendant has, because he was silent, to bear the costs.     If he replies and gives consent to the Advocate, no costs.     If the Plaintiff institutes a Suit without sending a Notice and if the Defendant admits, no costs.

2.  Court sends a Summons.    The Defendant doesn't turn up.     This doesn't mean the averments in the Plaint can be taken for granted.     The case is decided on merits without considering the silence as consent.     In the summons it's written that case will be heard ex parte.    Decree can't be given without hearing.     It can't be given neglecting evidence.     Non-reply to the Summons doesn't go in favour of the Plaintiff.     The strength of evidence does.

3.   Notice is given to a Public servant.    If he reconciles, well and good.     If he doesn't, he can fight the Suit.     His silence won't be an impediment.      It doesn't amount to Admission.

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