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rahul krishna (programmer)     14 February 2013

Credit card and personal loan default


Dear All,
Please help me out in in this regards as stated below:
I had taken a personal loan of 2.8 lakh  from a private bank for 3 years, and one credit card with used credit of 93k. till the date all emi are on time i paid but this month means 01-feb-13 onward due to some financial difficulties   i am not able to pay EMI back, and not paid the minimum amount due for credit card from this month onward . the adress having with the bank is karnataka adress. and i am not living there now,. within one and a half month i am going abroad for new job.  my first concern is the bank can stop me from going abroad ? in the airport they can stop me ?  i took loan when i was in karanataka  and credit card also issed in karnataka, now i am in andhrapradesh  and this banks can start legal proceedings against me before i go to abroad? means within 2 months?i have given cheques before getting my personal loan. so they will sue for dishonour of cheque. if they start legal proceedings within 1 month then i will not get my police clearance certificate.   my friend said they will issue a summons and the summons issued in karanataka is also valid in andhra pradesh?  

I want to pay the loan back but need at least 2 months time more to regularize the payment.  can you please help me in this regard.

Please let me know what legal action can be taken against me and how i can come out of it by the best possible way,and in future what difficulties i will face kindly help me out in this case urgently.


 24 Replies

P.Bashista (Advocate)     14 February 2013

Dear Mr. Rahul,

Your default in making payment is a civil liability.  When you take loan or use credit card, you have a contract with the bank to repay it, as per the terms and conditions agreed upon. If you do not make payment to the bank then the bank will first issue you a legal notice and will ask you to make payment. If you still fail to do so the bank will start a recovery proceedings against you which takes alot of time.

In regard to the loan issue, they must have taken post dated cheques from you. Once you will default in EMI they will start depositing cheques to recover money, which will for obvious reasons dishonour. Now once the cheques bounce two issues stand up. Firstly, you are liable for penal action under section 138 of Negotiable instruments act and other is the civil liability for breach of contract to repay. The second issue is not that a big problem as the first one. Once the 138 proceedings get started you will have to appear in the court and take a bail. 

In regard to the information at the aiport, it is done for those people against whom there is a look out. The look out starts only when the police or the court informs the FRRO that you are wanted to appear before a court or police but you do not appear or there is a non-bailable FIR against you or you are convict who might run out of the country. But in your case all this will not happen within 2-3 months. But ya there is one probblty that once you go out of India all these process start against you in India. And there might be a LOC against you in an year or so. So whenever you will visit back India you might be in trouble. So I suggest that settle it before you leave.  

1 Like

rahul krishna (programmer)     14 February 2013

thanks for the reply parvez

but, i still did nt got the answer , how long they will wait to start legal proceedings against me ?  because i have a plan to reapy the emi and the credit card payment  after 3 omonths once i started getting my salary from the job that  i am having abroad.. and i do not have any land or property in my name.  all properties are in the name of my father, so the bank can take recovery action against any of my family members? bank can pressurise to pay them on behalf of me in legal way ?  because i do not want them suffer.  they do not know that i i have these financial problems.   

Daksh (Student)     15 February 2013

Mr.Rahul Krishna,

The answer to your question is in affirmative for the two reasons one being there must be some guarantor in your case and secondly your family member might be retaining something out of your self earned moveable or immoveable property and or your share in ancestral property which is a good ground by the Bank to proceed against your family members.  In the fitness of things why don't you have a interface with bank tell them about your genuine difficulty get rescheduled your payment plan and get rid of your financial difficulty for now and ever.


Hope this clarify the issue.


Thanks and best regards



rahul krishna (programmer)     15 February 2013

no. there is no guarater because it is a personal loan, i only given blank cheques in the name of bank.  and how my  my fathers property  will become mine without his written consent by law ? there is no registered property in the name of me.  only one bike that i sold already.   i bought  home apliances and these banks can take all that ?  !!!! really? 

Ravikumar (Freelancer)     18 February 2013

Dear sir

Some private finances using advocate name like " i am advocate xxxxx, i have NB arrest warrant for you because you're not received the court notice which sent it to your old house address, if you want the case should be "amicible" then pay 30k or 40k to directly that particular finance company".  BUT one of my cosin who are pratice in Chennai high court, if he called that particular person cell number and checked that he is totally fraud person.

My cosin told to me that "Non-Cognizable case means that civil case issue the court will never give arrest warrant to any person unless received the court notice more than three times after signed it.

Is there any law for taking action for telling like that " i am advocate"  the person who are not advocate and law procedures please advise to me.



Akshay (LOAN & CC SPECIALIST)     13 September 2013

I am a freelancer assisting people on their credit card or personal loan issues. In case if you cannot pay your debths and wanted to get rid of it then do contact me .In case if you lost the job and cannot pay the EMI's then do not hesitate to contact me 

I have resolved multiple cases since past 4 years and many have got relieved from my advice 

Please send emails with complete details at banklegalexpert@gmail.com

G SYED AMEERJAN (SUpervisor)     09 December 2013



I got a Axis Bank credit card and had been using it and paying my dues regularly teill 2 years before.


Two years before i lost  my job and was not able to pay my credit card  dues and there was a principle outstanding of Rs. 16900.00.


And i started paying part by part of whatever i was able to pay in my monthly salary and have paid up to the tune of above Rs. 40,000.00. Now i am not able to pay any more as of my other commitments. As such i have paid 150% above of my principle amount, i reuested the bank to clear my debts without any further payment. 


but the bank is refusing and its collection agents are make frequent calls and visits and speak in harsh tones, stating that i have cheated the bank. Where is the point of cheating the bank when i ahve already paid my principle amount and 150% above the principle amount.


I am unable to pay more. Can u guide me with this situation, please?

ena (finance)     13 December 2013

Urgent!!-----Can court can pass order for decree in case of credit card defaulters???

P.Bashista (Advocate)     14 December 2013

Yes ena court can.

aj (manager)     29 January 2014


plz help to get some information.. I was workin with Company ABC n i took person load againts my salary and now i hv changed my company n working with XYZ company, M unable to pay the loan i took form fullerton india , are you authorise to come my new company XYZ TO trace me or no

Mukesh Singh (na)     13 March 2015


I have defaulted credit card payment of 2 bank in 2008. Due to financial issues, i was not able to pay the amount.

I wanted to pay the amount now. Please suggest whom should i contact, bank or credit agency who are harashing me from time to time. 

Please help.

raja (engineer)     21 May 2015

1.My brother got a loan from icici to build house in a gifted land(500sqyards) from my dad.  That land link documents  We got them from 1956 from original seller.

2.We built 75% of the new house from the 16 lakhs taken from icici bank in 2005 of ( total sanctioned amount of 25 lakhs from icici bank.)

3.One day we got notice that further construction should be halted (from sub register office)as that land belongs to wakf board long back  (aurangajeeb donated that land to mosque when he stayed there for hault while moving  for a war), later farmers sold that land to subsequent owners before 1956)

4.We immediately intimated this situation to icici bank and requested them to wait until this dispute is settled. Instead they choose smartly to start emi for 16 lakhs with out our consent.

5.We completely shattered as we already spent about 30 lakhs all together(loan +14 lakhs) from our pockets in 2005.

6.We asked icici to be feasible regarding this situation but didn’t agree, so we gave up the property and didn’t  bother to there emi’s.

7.They sent notice for foreclosure, we agreed for it and its auction. But nobody bought that property  as everybody know its got litigation from wakfs board.

My query is that how much we are responsible  to this home loan default and how icici bank is not. What are my rights, as icici bank reported to cibil that we are defaulters(even when we agreed to icici bank to auction the property). They even sent foreclosure advertisement as a mail to us.

Now due to this we couldn’t buy home even now because of bad cibil report(score:644 and default status: blank, amount od:17lakhs, till date due:27lakhs).

Is there any way to fight back for getting our cibil rating unaffected and settle the issue in neutral terms of court (and what are our prospects and rights to do so). Or its just for us to suffer  our bad fate.


raja (engineer)     21 May 2015

P.Bashista (Advocate)     22 June 2015

Since the day I have posted my opinion on this query I have received numerous calls of people who are credit card defaulters of pitty pitty amounts such as 10k, 50k, etc. or who have paid the principal amount but still keep receiving threatening calls from the banks to deposit the interest amount else will be prosecuted in criminal court.

Few example calls received by such people are:

"I am an advocate calling from High Court of so and so state and there is a criminal case filed against you for not making the credit card payment which you were suppose to pay in year 2005 or so. Make the payment else you will have to go to jail."

"I am calling from so and so police station and there is a non-bailable warrant issued against you. Make the payment else we are coming to arrest you."

Below is certain information for all you people who get such calls:

Firstly, these people who call you are neither advocates nor police. They are recovery agents on bank panel. 

Secondly, Credit card issued by banks to you are unsecured loans and is purely a contractual liablity. In other words it is a civil issue.

Thirdly, No criminal case is made out for such pitty amounts untill and unless you have issued some cheque against the payment and the cheque has bounced. Then you are liable under Section 138 of NI Act, which is also a bailable offence. Otherwise the bank has to go in a civil recovery case. Even for that there is a limitation of 3 years to file a case.

Fourthly, No criminal case of such nature is filed in any High Court.So anyone claiming to have filed a criminal case against you in High Court is defintly a recovery agent.

Fifthly, the police has no authority or power to recover the money from you and become a recovery agent of private bank.

Sixth, Always take an NOC from the bank in writing when you settle the loan or credit card outstanding full and final with the bank.

Seventh, Banks do one smart play with you that if you are a defaulter of a pitty amount they will not file a recovery suit against you but will keep updating your defaulter image with CIBIL. This distroys your credit history and rating and disables you from getting any other loan or credit card in future. If the bank has not filed a civil suit within time but still distroying your CIBIL credit then contact a good lawyer.

Last but not the least, if you use credit card use it wisely and pay the due amount on time.


P.Bashista, Advocate

Supreme Court of India



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