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Monoj Das (None)     14 May 2012

Can order 37 and 38 rule v be filed for recovery of card due

Dear Sir/Madam,

I hold a Credit Card from a private Indian bank since 2008. I had been making regular payments till around July-August 2011, after which I defaulted as I lost my job. I had taken a personal loan of Rs.60,000/- from the same bank and paid back the entire amount as per the duration mentioned in the loan document.

As I do not hold a job for the last 8-9 months, I became a defaulter for the Credit Card Account. I have tried numorous times to contact the bank's personnel and either regularize or settle the account. But, not a single person from the bank's side was willing to commit anything in writing. Their collection agents have also made false promises/statements and threatened me repeatedly, of which, I have enough proof in the form of saved conversations and messages.

Now, the bank's legal counsel has sent an e-mail to me stating that I have to pay the entire amount plus 18% tax on the amount and an additional Rs.1,000/- towards the cost of the legal notice. If I fail to do so within 7 days, he said that they will initiate action under Order XXXVII and would claim relief under Order XXXVIII Rule V. As I am jobless for almost a year, there is no question of me being able to pay the entire sum.

My question is, because the Credit Card was issued to me on the basis of my salary account with the bank and as it is an unsecured instrument, can the bank file a Civil Suit under Order 37 & 38 Rule 5 and compel me to pay the entire amount? Whether such a suit is teneable in the court of law?

As a matter of fact, I also had a card from SBI, the payment for which I have duly settled. 

Kindly provide your valuable inputs on the same.

Thanking you,



 2 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (     14 May 2012

Dear Mr.Monoj, 


The Credit Card company can indeed file a summary suit against you under order 37 of the CPC.  To stall that process contemplate replying to the legal notice to buy time and raise some triable issues. Consult a local advocate

Pradeep Kumar (Lawyer)     29 May 2012

Dear Sir,

  This is an advice to a person to an honest person and not for those who use this information as a tool to escape from paying there debts.Usually Banks don't file cases under that order.However,if they do,you just wait for summons from court to come.Once you ,receive,enter an appearance in the court.               

           Pay your debts.Legal advices are not to tell you the tricks to stall but to make you aware of using honest means.In case you don't have job,tell the court.Courts are magnanimous enough to allow you time.As far as O-38 is concerned,it's a worrying stage for people having properties.I fear you have some that's why you so scared.If not then be ready to go to Civil Prison.

Adv.Pradeep Kumar


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