Loan taken from a URAL co-operative society
i had taken a loan from a co-operative society but due to some heavy debt my house was sold and now i am a tenant. It has been 3 years since the loan but now when i contacted the society for returning the loan they gave me a amount which is almost double of the loan. They put compound interest on it and saying that only court will give settlement on this its not on their hand. They are now sending me court notice. What should I have to do now? as i want to pay the principal amount but not willing to go through court.
Asked in Business Law from New Delhi, Delhi
society must have forwarded you detailed statement of account every year . if you dont pay installments on time interest on loan will keep on increasing . if they have filed case against you and sent you court notice ie summons through court you have to file appearance and defend case on merits . you cant after 3 years inist that you will only pay principal maount of loan
got it sir. I am going for a one time settlement.But if I go through court's way then what is chances for me to get good settlement. And can a warrant issue on such cases on non receiving of notices or summons.
Asked 3 years ago
if it is a civl case no warrants are issued . court will decide case exparte once summons are issued and you fial to file your appearance
If the court notice has been sent to you then engage a lawyer for your defence. If you are willing to pay the principal amount then you may request the court to send the matter to mediation for settling the issue in dispute amicably outside the corridors of court. The society may in its wisdom and prerogative agree or reject your offer of paying only the principal amount.
Warrant will not be issued for your appearance as this is not a criminal case. On your non-appearance the court will proceed further and decide the case ex parte.