You'll don't have to appear in the arbitration proceedings, even if you duly repay the bank.

But, it is advisable that you appear on the first date of arbitration proceedings and submit the settlement document, so that the case may be withdrawn by the bank.

Also get your bounced cheque back from the bank after settlement.

See first of all it will be better to reply the notice stating the bank took cheques as security further bank without issuing demand notice put the cheque for clearance without informing you which was agreed upon while giving cheque further state that you are paying emi of loan as agreed and there is no default so bank should not have put cheque in process.

Further attend arbitration and seek a settlement there too but before that if bank manager agrees to recall notice and arbitration restructure loan or allow you to pay emi then you can settle the issue and can keep paying emi, further you can give a undertaking to bank for timely payments.

See since cheque has been issued the bank can file an complaint under 138 NI act which is quasi criminal offence and you can be punished in same further there is option of compromise also in that but at that you have to clear entire amount so it is better to clear the issue with bank and then proceed,

The notice can be replied within time and you should appear for arbitration for settlement. But the best course at this point shall be talking it out with bank and requesting them to withdraw arbitration proceeding and recall notice.

Hello,

Banks are always interested in resolving the issue out of court rather than suing their customers .

I would like to suggest you to talk with the manager by personally meeting him . State him your financial condition and ask him to reconstruct the loan that is to reduce the amount to be paid monthly .

In this way you can avoid further complications.

Hope this helps .

Regards.

1) you have to reply to legal notice

2) attend arbitration proceedings

3) request for rescheduling loan and file consent terms

4) in case cheque bouncing case is filed contest cheque bouncing case

5) cheque bouncing cases take 5 years to be disposed of

1. If the bank has invoked arbitration then you can attend it

2. Give a settlement proposal

3. Tell the arbitrator that you are presently facing a financial crunch. However you wish to clear all the outstanding by paying one time amount

4. Give the above proposal and request to waive all interest on unpaid dues and direction to bank to not take any coercive steps against you for loan recovery

5. Give a time period within which you will make the payment

6. The arbitrator will definitely consider the settlement offer

7. You can also give same settlement proposal to bank and request bank to maintain status quo and make a statement accordingly before the arbitrator

Dear Sir,

Once cheque is bounced and legal notice is issued the Bank Branch Manager cannot help you and you have to face the trauma and you have to reply to the said legal notice legally saying that the said cheque which was issued as on the date of signing the documents was without any considerations as such it can be acted upon. Even then cheque bounced case is filed then you have to approach High Court under Section 482 of Cr.P.C and get a stay on such proceedings. Since these are all civil in nature and it being personal loan bank people cannot do anything. The following is the law.

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ICCI Bank Limited vs. Prakash Kaur case,

The Supreme Court in a landmark judgement reiterated its earlier stand that banks cannot deploy musclemen for recovery of loans from defaulters thus forcing them to end their lives.

"We deem it appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law," a bench comprising Justices Tarun Chatterjee and Dalveer Bhandari said.

The court while dismissing the ICICI Bank's plea refused to delete the Delhi High Court's remarks that held the bank and its musclemen responsible for abetting a youth to commit suicide by humiliating him and taking away his motorcycle financed by the largest private sector bank.

It also asked the ICICI Bank to to pay Rs 25,000 as cost of this litigation to the respondents within three weeks and directed the Delhi Police to conclude the investigation against the bank expeditiously within three months, keeping in view the gravity of the allegations.

The court also directed the concerned Deputy Commissioner of Police to submit the investigation report in the Delhi High Court.

According to the court, complaints received by Reserve Bank regarding violation of the above guidelines and adoption of abusive practices followed by banks recovery agents would be viewed seriously.

Reiterating the RBI Guidelines on Engagement of Recovery Agents, the court said, "The Reserve Bank may consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period. In case of persistent breach of above guidelines, Reserve Bank may consider extending the period of ban or the area of ban."

"RBI had expressed its concern about the number of litigations filed against the banks in the recent past for engaging recovery agents who have purportedly violated the law," Justice Bhandari, writing the verdict for the bench, stated.

RBI in a letter accompanying its April 24, 2008 Guidelines had stated that it might consider imposing a ban on a bank from engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period.

ICICI Bank had moved the apex court seeking deletion of some paragraphs in the High Court order which had said that "...the proximate cause of death of the deceased that led him to commit suicide was on account of humiliation caused by the Bank people from where loan was taken by him."

"The modus-operandi employed by the banks like ICICI for realisation of their loan amount and for recovering the possession of the vehicle against which loans are given is extra legal and by no stretch of imagination they can be permitted to employ musclemen and goons for recovery of their dues even from a defaulting party," the High Court had observed.

The High Court order had come on a petition filed by Shanti Devi Sharma, the deceased's mother, seeking a probe against the ICICI bank and its staff for the unlawful action, which led to the suicide of her 34-year old son Himanshu Dev Sharma.

Sharma had committed suicide in October 2005 by hanging himself at his house after he was allegedly intimidated and humiliated in front of his neighbours and family by recovery agents employed by the bank for recovering the loan amount taken for his motorcycle.

The ICICI Bank had contended that it was within its rights to recover loans and had followed the required proce

Dear Client,

Better attend arbitration hearing, if you are willing to pay rest EMIs, request the court to make provide sometime.

otherwise can do one time settlement. and finish the matte.

1. I suggest you not to refuse notices and reply them accordingly through a lawyer.

2. You do not have present at lawyers place for this issue.

3. Now, bank can file cheque bounce case against you.

4. Approach a lawyer immediately.

You have defaulted in the loan repayment hence you have been served with legal notice.

There is an opportunity before you to settle the same through arbitration process.

If you can talk to the Bank manager and sort out the things by making the payment then at his discretion he may instruct to cancel the arbitration proceedings.

You may have to talk to the manager having an appointment with him.

The manager shall be competent to decide further course of action, so convince him.