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Reshma (free)     25 June 2010

Personal Loan issue

Dear Sir

I do have 2 personal loans from Barclays Bank with 2,00,000 and 2,00,000 with HDFC and I paid EMIs 22 months for HDFC and 18 Months for Barclays. I lost job and facing lot of financial problems and Im not in a position to pay the amount but I really wish to pay in a specific period of time. Now I am getting many calls from Manager and agents that they are asking me to pay the remainings EMI's.But I ask them I will pay the total amt withing 3 months.because I am planning to sale the site and will pay the amt.But they are not acceepting and they are doing harrasement... like ,if u r not paying the EMI then u came to know what will happen and we have seen many culprits like you ...so u have to pay the amt ASAP.

I said it's not possible for me.. I am getting these calls daily from the banks and they are harrassing me.

I am planning to come to settlement and pay the amt once my site being saled.I am also waiting to sell my site.

I explained the situation to bankers but they are not accepting this.They are telling we have ur address so we went to ur home town and we know what will do there... My parents are old.so I am thinking abt them.because am the only daughter to them.so I have to pay the amt.My husb don know abt this.now I don want to share with him these issues.bcoz we r newly married.

Can any one suggest me how to go about it




 6 Replies

Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     25 June 2010

just intimate the bank through written letter with a copy to RBI that you have been not in a position to pay the loans becuase of so & so reasons......................., you wish to sale so & so property for the same, if they are willing to buy against outstandings, to acknowledge the same to you,

to both the banks to setttle the issue by registered A.D.


Reshma (free)     25 June 2010

Hi ,

Thanks for your reply but they are telling we don accept any kind of reasons we want our EMIs immediately.

Then I said I am not able to pay now.

they are telling we will see u...with some harsh words.

please suggest me what to do.


Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     25 June 2010

you just send the same in writing to the bank and rbi. then also they continue the same please note that rbi have set up certain guidelines for the same. also try to share the problewm with your husband and your intention then file a police complaint against recovery agents or bank personnels regarding their harrasments.

Reshma (free)     25 June 2010


I just want to know one more thing I want to know.It's for just to know.Any way I will pay the amt.That's been sure.

Is there any problem if we don't pay the amt. I m plannig to say like this to bankers(who are clling me every time).

But  within 3 month i definitely pay the amt by going settlement with the bank. don't hting negatively for tthis and suggest me.


Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR)     25 June 2010

for any decision first inform your husband, then act accordingly.

as after certain request say bank has policy of taking cheques, then as your cheque bounces they will file case u/s. 138 against you, and then harrasmnet will start as you will have to go to attend the court for the matter, appoint advocate etc.


you must know that as you have taken loan you should pay, rather then getting in through the legal case and having burden to attend the courts on particular dates.


Siva (Consultant)     07 September 2010

I think that this case not involves u/s. 138. Pls see the below judgement by Madras High Court.



Keep off civil disputes, HC tells police:

Chennai: Can criminal proceedings be initiated for issues concerning credit cards, personal loans, housing loans, hire-purchase schemes, default in payment of installments and cheque-bounce cases?

'' NO '' - is the Madras High Court's emphatic answer.


Neither the judicial/metropolitan magistrates shall entertain any private complaints from corporate firms in this connection, nor shall the police register criminal cases against persons concerned to please their corporate complainants, said Chief Justice R Regupathi. Not stopping with that, the judge directed the high court's registrar (vigilance) to compile state-wide statistics on the number of private complaints lodged for these civil disputes, and the orders passed by the magistrates concerned.


Narrating the novel system adopted by private financial institutions/banks, the judge said they file private complaints before magistrates and secure an order directing the jurisdictional police to register a criminal case and carry out investigations under Section 156(3) of the CrPc. Despite the fact that the dispute is CIVIL in nature and the Police are under no obligation to register any case, police personnel contact the persons and intimidate them to repay the credit card payment or personal loan or hire-purchase amount due to the bank. Citing two specific cases that came up before him, Chief Justice R. Regupathi said in both cases though there was nothing to investigate, the magistrate concerned, "with oblique motive to convert a civil case into a criminal case," directed police to register a case and probe.


Magistrates asked not to entertain private complaints.
Police not to register criminal cases in such complaints.

Erring magistrates warned of stringent action.

HC registrar asked to compile statistics on number of private complaints.

Also asked to report on the orders passed by the magistrates concerned.




Also, kindly have a look of the below web-links (TIMES OF INDIA, 13th JULY, 2008):


1)      https://epaper.timesofindia.com/Repository/ml.asp?Locale=english-skin-custom&Mode=Gif&Ref=VE9JQ0gvMjAwOC8wNy8xMyNBcjAwMTAy


2) https://epaper.timesofindia.com/Repository/ml.asp?Locale=english-skin-custom&Mode=Gif&Ref=VE9JQ0gvMjAwOC8wNy8xMyNBcjAwNjA0

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