legal action and police warrant on loan emi not being paid

Hello to all respected people here. Currently my father has been going through a lot of harrassment for which i am penning down the problems and seeking suggestion.

My father took a personal loan from India Bulls in the year 2005( total loan amount of 24,500 payable in 72 equal installments of 828 INR). However, he lost is job in the mid 2006 and hence from December 2006 onwards he was not able to pay EMI. Following this circumstances, we decided to come to a settlement with India Bulls and on 6/9/2012 we paid an settlement amount of 8350 INR to the settlement co-ordinator, who told that they will be sending the confirmation of the settlement few days later, which we never received till date. Furthermore, due to the sheer negligence of my father he was not able to notice the missing signature from the receipt. In the bill the collector only mentioned 'towards partial settlement', which after my fathers refusal he crossed on the word PARTIAL and wrote FULL. In between we receieved few calls from company asking us to pay the EMI's, on which everytime we asked them to check over the settlement amount that we paid. But everytime they denied saying that the amount was paid to settle the outstanding EMI's only. NO LEGAL PROCEEDINGS/LETTERS HAVE BEEN RECEIVED BY US IN BETWEEN.

Things started getting exciting when we were approached by a collector few days back, who said that there has been a police warrant against my father and that if we do not pay the 43000 INR, they will take him to custody. Upon hearing this today, I went with my father to the branch of India Bulls and talked to the supervisor and she showed me in her system that total due till date has been 43000 INR which includes premium amount and also bouncing charges. And that she is willing to settle this for 10500 INR. When I asked her about how can police issue a warrant without any legal notice she replied that it is possible that we have not receieved legal notice by mistake (includes address mismatch!!!!) and that the warrant is issued by Delhi police. She also warned that in case my father fails to pay the amount of 10500 they will ask for the reissue of warrant to take him to custody, which i think she is bluffing. I told her that we have been exposed in past in a very fraudulent way and that in no position my father will be paying the 10500 Rs, however we can settle this for 6000 which she refused.

Now my question is,

1. Is there any possibility for a police warrant without any prior legal notice?

2. If by mistake we do not receieve any legal notice which court might have ordered, will there be any possibility of police warrant?

3. What do you think would be our stance in this case as the collectors are continuously harrassing us over nothing!!

Please let me know your views on this. Thank you in advance.


Dear Querist

1.the police have no power to issue any warrant. the court only issue the summons or warrant against the accused person if there is any complaint filed before the court.

2. yes it is possible that if you have not received any legal notice from the financial institution or from the court, and the company submit their statment that the compnay has sent the notice and filed the recipt of the postal department alongwith the copy of the notice before the court, the court passed an order.

3. if the collector are using pressure no need to worry about it and file a criminal complaint against him along with his senior/supervisor/manager.

Feel free to call


Law Consultant



See my response below:


Q.1) Is there any possibility for a police warrant without any prior legal notice?


A.1) Legal notice and warrant are two different things altogether. Notice is issued by police or judge under different sections of IPC which would be requried to be served as per the address given by the complainant. 


Warrant is issued only by a competent court of law and police assists the court in successfully executing such warrant.


Warrant can be issued by the court without issuing a notice seeing the exigency of the case. But generally when the warrant are not executed due to address incorrect, then within 2-3 court dates, the court issues orders under S.82/83 IPC for proclaimation. This goes into print media like newspapers. But in my view, your case is not that severe that court would issue warrant directly.


Q.2) If by mistake we do not receieve any legal notice which court might have ordered, will there be any possibility of police warrant?


A.2) As explained above, only court has power to issue warrant. And yes, certainly if the address is incorrect, court would issue warrant. But as your case does not fall into the category of criminal, there are less possibility of warrant and police action. Yours is a civil case as a defaulter.


Q.3) What do you think would be our stance in this case as the collectors are continuously harrassing us over nothing!!


A.3) As rightly suggested by @Nadeem Qureshi, you can approach your local police and complain regarding this harrassment. But I would suggest not to do so. Our police is popular for harrassment and in your case you are the defaulter. Hence when you would approach the police, there are more chances that your harrassment would increase in the hands of police.


In my considered view, you send a formal reply to India Bulls stating your economical condition. Clearly and briefly explain what has happened and that you are also willing to pay but may be you need time. Hence the Loan Company give you some time so as you can gather resources to pay back. When you would send such a formal letter, they would certainly respond. If they respond positive, you luck, but if they do not deter or send any negative reply, I suggest you approach Consumer Court. It is a different matter that you are defaulting but that does not mean they can harrass you. To recover their money, they did all investigation and that is when they sanctioned your loan. But now if they are not able to recover it is their headache. I strongly feel you would get relief from consumer court easily in terms of time to repay the loan.





Thank you for all your replies. As I would like to mention here that al the communications which took place from the company are verbal, there has been no instances of written communication. Is there any way I could find out if court has passed any order on warrant? If yes, then how?



Has your father issued any cheques in favour of India bulls?  Do you have any proof that you paid Rs 8500/- full and final settlement of Personal laon?


Mr. Nadeem has rightly clears the query in shortiest/ simple manner




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