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Paul   22 December 2022

Personal loan emi not paid for 9 months, complaint was filed under section 200 of crpc sections 25

I took a personal loan from HDFC bank for Rs 3,80,000, I paid the EMI for 10 months, as I don't have job now also due to bad financial situation I couldn't pay the EMI for 9 months. I received a summon from the magistrate for the Complaint filed under section 200 of CrPCR/W sections 25 read with section 28 of the Payment and Settlement System ACT 2007. The summon also stated that electronic fund transfer Mandate for the amount of Rs 11000 was failed due to ‘Insufficient funds’ and asking the magistrate to recover the same.


I communicated to the bank officer on this, asking for the loan restructuring, he mentioned the loan account is in ‘write-off’ status, mostly I have to go for the settlement. I don’t have a job now, but must be getting one soon. I can make the regular payment with reduced EMI.


My questions are,

  1. What question will the magistrate ask me on the first hearing and what should I say? If I explain to the magistrate that I didn’t have job or due to the bad financial situation I couldn’t maintain the amount in bank and that now I can pay Rs 11,000 and pay it. Will I be sentenced to jail?


Or It is best say ‘I defend’ on any accusations and go for the trails?


  1. If the trail starts, could I ask the magistrate for more time to pay the amount?
  2. Any ideas of, how many hearings will be there?
  3. Assuming the case runs for 1 year, by which I could arrange for the full settlement amount and pay it, will I be sent to prison even after paying it?


I am sorry for the lengthy details, thanks for your patience in reading the above and for the answers.


 12 Replies

Suresh S   22 December 2022

I don't think a person struggling without a job will be sent to jail for loan default. Moreover it's not dharma! 

You can state all your facts and request for your convenient plan of repaying. Without a job or with a severe financial difficulties how can a person repay the loan. It's impossible.

I think you can have every right as per natural justice to restructure the repaying after getting a job or your financial difficulties are improved. 


1 Like

Dr J C Vashista (Advocate)     23 December 2022

Get the case settled either with Manager of the Bank as one time settlement or through mediation proceeding where you can pay settled amount in easy installments.

Paul   23 December 2022

Thanks for the reply sir. I don't have money for one time settlement, I didn't speak to the manager yet, can I ask him for settlement amount in easy installaments? If the manager won't agree, whom should I be contacting for mediation proceeding?

Suresh S   23 December 2022

You can write a representation stating all your details with the financial difficulties to the Chairman, District Legal Services Authority of your District.

You need not spend any amount for approaching DLSA. 

They will resolve the issue amicably.

1 Like

Paul   23 December 2022

Thanks Suesh S. Writing the respresentation you mean, writing a letter to 'District Legal Services Authority' explaning my situation, right?

Suresh S   23 December 2022

Yes, you can write a letter (formal) to the Chairman, DLSA, your District stating the details and your actual difficulties with a request to resolve the problem amicably.

The issue will be resolved amicable. The DLSA may initiate mediation or any other arrangements.

No need to be depressed over the issue. 

Wish you to get a good job soon to overcome all your financial difficulties. 

1 Like

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     23 December 2022

The interest of the bank is to get back their money with interest. They get nothing by sending you to jail or giving you any other punishment. For what purpose did you take the loan? Have you acquired any assets with the loan? Have you mortgaged any assets to get the loan? The Bank will have a charge on your assets. If there is a reasonable chance of their getting back the money, the Bank will agree to the proposal that you make. If you place any proposal before the magistrate, the magistrate will ask the Bank's lawyer whether they agree?

1 Like

Dr J C Vashista (Advocate)     24 December 2022

No one can help you in getting out of your liability qua outstanding loan amount which you have consumed, however, Bank may consider to waive penal interest and other charges, if you approach concerned officials. .

2 Like

Sudhir Kumar, Advocate (Advocate)     24 December 2022

Reading whole story indicates thtt bak is nowhere at fault.


Payment is the easiest way out.  In this case there seem to be more facts to be shared.

Paul   24 December 2022

Thank you for the questions as well the answers/directions. I took this personal loan for home renovation and to pay off some debts on my credit card. No assets were acquired or mortgaged on this loan. As I don’t have money for settlement, I am open for loan restructuring. I understand I took the loan and that I have to pay it, I am trying my best to meet the concerned person of the bank, however a bank officer said  since I didn’t pay the 7 months EMI, it is in write-off status. If the bank agrees for the restructuring I should be getting the letter of agreement which could be produced before the magistrate right ? Upon which the case is closed, right?
I wanted to solve this in the first hearing itself. 

Thanks for the answers.

Sudhir Kumar, Advocate (Advocate)     25 December 2022

First let the bank agree to what you say  

Paul   28 January 2023

Thanks Suresh. The process is pending with DLSA office. My summon date is FEB 7th, if the mediation proceedings didn't happen before that, what options do I have? Can I state my situation and plan of paying it in EMI instalments  before the magistrate? 
Please help!

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