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SHAKTHIVEL (LAW OFFICER)     06 July 2011

Protection under Insolvency Act

Sirs,

I started business with the help of bank finance and due to bank`s discriminatory approach towards my account since I did not oblige to their illegal and unlawful demands for bribe in return to the loan sancioned by them, they stated harassing me by dishonouring the cheques although I had enough balances to meet / honour the cheues in my CC / OD account, the bank dishonoured with some pretext or the other.  And due to such dishonour of cheues my reputation in the market was totally damaged and thus sustained heavy losses in the business.

 

Now the bank has deemed my account as NPA although I have paid advance EMIs towards term Loan account and OD / CC account could not be operated by me due to bank`s indifferent attitude, much against the contract entered into between us for the purpose of availment of CC/OD limits.

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Now, can I file case against the bank under Consumer Protection Act for causing dishonour of cheues despite of the fact I had provision to meet / honour the cheques ?

 

Secondly can I seek protection under Insolveny Act and thus get myself absolved from the liability ?

Your valuable suggestions would save me from horrifying experience I am facing in my life, all because I failed to pay bribe to bank officials.

Kindly advise me.

Regards,

PRAKASH.



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