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harpreet (designer)     30 April 2012

Suit under section 420/406

Sir 

In the year a agency of SBI credit cards has apprached me for the credit card with a limit of Rs. 25,000/-. I applied for the same and received the same in 2006. In the year June, 2007 i have spend money amounting to Rs. 23,000/- but due to some financial crisis I could not refund the money. After that I received some statements from the bank twice in a year but after for the last 2 years i did not received any thing from the bank. Now some collection agency approached me on 24/4/12and said to me that I have to pay an amount of Rs. 1,18,000/- ( inclusive interest and principal) for using credit card. I said them to settle the case and waive me the interest as much as possible so that i will make the payment, but instead they told me to deposit Rs.1,1,8,000/- or face legal action u/s 420/406 of criminal act. 

I want an expert advice whether bank can approach the criminal court against a defaulter of credit card and whether the crimianl court accept this purely civil case in court for trial. I also want to know what is the time limit in which a bank can approach the court for a legal action against a defaulter.



Learning

 3 Replies

Deepak Nair (lawyer)     30 April 2012

The bank cannot take any criminal action in this case.

The bank can file a civil suit for recovery of the outstanding amount and not at all any criminal case. These are pressure tactics by the agency to recover the amount.

If you are confident that the amount is exxaggerated, then ask the agency and bank for the statemnt. If there is any irregularity in the statement, then you can take action against them or deny them to pay the exaggereated amount.

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(Guest)

The remedy in the hands of bank in such a case is purely civil in nature. It may file a recover suit under RDDBF Act. If the bank is seeking unjust enrichment, then contest the case.

 

Regards,

Ashish Davessar

Advocate

Delhi, Chandigarh

VIKRANT VERMA (LEGAL ADVISOR)     30 April 2012

Write  to The   Banking Ombudsman at RBI   and give all the details of facts you will get the reflef

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