I had taken a personal loan of Rs 2,00,000 in 2005 from a private lending bank with repayment term of 5 years and then subsequently I had issued post dated cheques of Bank A to the private Bank for 5 Years repayment along with 5 Blank Cheques. After paying for the loan for 6 months I was finding it difficult depositing the money in the Bank A which is far away from my House hence I later gave post dated cheques of Bank B, the lending bank was realising the EMI’s by presenting the cheques of Bank B for one Year and later due to Job I had to go out of station and subsequently after 3 months there were two cheque bounces after which they were coming to my house and harassing my parents, I had given my parents 1,50,000 for my insurance premium and there medical expenses I told them to repay the loan since the Lending bank employees were misbehaving, they cleared the total outstanding dues to the tune of Rs 1,30,000 foreclosing the loan in my absence in the year 2007 and the private bank subsequently issued a receipt for the same amount and were given the PDC’s of Bank A and closure letter but the PDC’s of Bank B were not returned. In 2009 my father passed away. In 2011 an Asset reconstruction Company alleging that they have bought the loan from the lending bank and has now sent a legal notice stating that I owe them Rs 3,00,000 .I did not keep the receipts in safe custody all I have is the returned PDC’s and over that my father who had foreclosed the loan has passed away. My question is if I had any dues, why did the Private Bank/ARC keep quiet for so long without corresponding or even giving me an opportunity for one time settlement and now after 5 years they have sent me a legal notice asking for recovery of money, are they not covered by limitation act and can they take action for cheque bounce even if their dues were cleared. Also in worst situation if I am unable to prove that all the outstanding was cleared with the bank what consequences would I have to face, Will I get any relief since it was an unsecured loan. I am enclosing the legal notice as an attachment, Please advise.
