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Anjana N M   12 February 2016

How to come out of ep court?

My father took a loan from a bank but during the year 2009 hit by the recession he could not continue to pay the loan. On the first month of his non payment of EMI itself he informed the bank stating his inability to make the payment through a letter. We were continuosly chased by the Bank Recovery Agents asking us to make the payment immediately. They harrased our family very badly even after explaining our inability to meet the liability.

During the year 2015 he received a notice to appear in EP court. The EP has been filed based on an Arbitration Proceedings that happened in 2009 of which we were never even informed. Even these gundas from the bank never uttered a word about Arbitration that took place.The bank has also asked for Arrest Warrant in the EP. On the date of the first hearing in the EP court, a person from the bank(guess that person is also a bank agent) contacted my father and asked us how much we could pay towards the loan. The EP court has now transferred the case to Lok Adalat.

My father has neared 60years of age and still not recovered from the huge business loss he faced earlier. He has not willfully avoided the EMI payment. 

Is there any possibility to close this case in our favour? Please advice

Thanks in advance.



 5 Replies

adv.raghavan (Advocate,9444674980)     12 February 2016

Inform us about on loan amount and outstanding as on the date . Without your consent they cannot transfer this case to lok adalath, going by your statement , is it  secured loan or un secured loan? Without knowing full details of this case it wont be nice to advise upon.

AV Bagur Advocate (Advocate )     12 February 2016

From the information posted by you it is not possible to offer any opinion on the subject.  It is necessary to get full detials of the loan agreement and the so called arbitration award before any options can be considered.  It is better if you consult a good local advaocate for the best way forward in the matter.  Insolvency could also be an option.  

Anjana N M   12 February 2016

It is an unsecured loan. Balance amt due is Rs 6 Lakhs. They have added int of Rs 6 Lakhs for these yrs. It is not like we dont have any intention to pay but our day to day survival itself is difficult. My father's income is less than 1 Lakhs per annum. Pleas tell us a way out.

adv.raghavan (Advocate,9444674980)     13 February 2016

if you are in and around chennai you can contact me i can do something in this regard, after going through all the documents.

narendra.s.p (Chief Manager(Law))     14 February 2016

 Go for compromise with the Bank. Submit compromise proposal



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