1. Well,if the PDCs were issued in discharge of legal debt which was so in this case then subsequent instructions not to deposit the same of recovery of the loan amount is not enough unless in lieu thereof hard cash or other acceptable mode of payment was offered.

2.So the creditor in this case committed no illegality to place those cheques to recover its loan amount.

3.in this situation your client better negotiate with his creditor to settle amicably. Otherwise he would be soon entangled in web of litigations making his life too difficult to live.

Yes they can but to some extent like if you not have paid after their so called notice.

Hello,

If after closing of the loan there is some outstanding liability against your client then the company can present the cheques to clear the dues.

Though you may challenge the same as presenting cheque is not a appropriate remedy for recovery of the money. Challenge 138 proceedings and the summon before the High Court u/s 482 od Cr.P..

What was the amount of the loan?

Regards

Company is at liberty to present the cheques issued by your client even after termination of agreement

2) once cheques are issued nBFC is at liberty to present the cheques and on being dishonoured file complaint under section 138 NI

The NBFC could have done this and there's nothing wrong in their act of presenting PDCs and ECS mandate after the foreclosure notice was issued.

Recently, in the case of Sampelly Satyanarayana Rao v. Indian Renewable Energy Development Agency Ltd., (2016) 10 SCC 458 : AIR 2016 SC 4363, the Supreme Court dealt with a situation where post-dated cheques were given describing them as “security” but they were towards repayment of loan amount, and the loan had also been disbursed already. In these circumstances, the Supreme Court held that dishonour of such cheques may attract offence under Section 138 of the Negotiable Instruments Act.

The bank can very well initiate steps to recover loan from all the possible legal ways from the defaulting borrower.

There is nothing to be agitated about it.

It is a routine procedure.

The loan recall and foreclosure action is part of the procedures that are followed in the event of default in loan repayment.