Missed my personal loan EMIs and the bank sent legal notices.
Hello, I took a loan of 1.5 lakhs from HDFC bank in Aug 2013. EMI was Rs. 4175/-. I had been paying it diligently until march of this month when I lost my job. I couldn't pay EMIs for the next four months until I got a new job. I got a job in July but my salary wasn't enough to clear all the pending dues at one go. However, I have saved the money and paid it to the executive they sent several times. Now I do not have any pending EMIs. However, while all this was happening, I received a legal notice from HDFC a month ago asking me to pay the total remaining amount i.e. 1 lakh within 7 days. I asked the HDFC executive and his manager about this and they said I would be fine if I could keep up with the EMIs. And I did. But I received another notice today saying the matter has been referred to Arbitrator for Adjudication since I couldn't pay 1 lakh within 7 days of receiving the first notice. What exactly is an Arbitrator for Adjudication? Is it a Civil court? If so, how can I avoid further escalation of this situation? What are my options? Can I settle this matter out of court? Would be wise to contact the bank executive and his manager who promised me they would resolve it? Or will I need a lawyer? How long do I have before I can settle this without going to the court? I would be grateful it if someone could answer all my questions. Thank you so much in advance.