1) if an award is passed against your brother then bank will seek to execute award by attachment of brother movable and immovable property
2) if inspite of attachment your brother fails to pay bank can seek orders to sell the property
Arbitration notice - credit card
My brother was using a credit card and he has not made payment on the card. He moved with his family to Canada permanently. We received an arbitration notice in post from principal arbitrator. I talked to my brother and he is not responding me correctly. I feel that he is not in position to pay the amount. Amount is huge for me to pay as well. It is around 3 lac. The flat in which I live is in his name and it has a home loan on this flat. He pays EMI regularly without any bounce. In fact, I pay EMI by depositing cash in his account each month. He has not given any cheque to bank. Payment was deducted from his account every month for credit card automatically before he moved. Can you tell me the worse scenario here? Can he lost his home? Can his saving account will be seized?
Asked 5 years ago in Civil Law
8 Answers
If you are not a guarantor to the loan you will not face any problem. The loan is not secured against immovable property, the lender has to power to attach any immovable property and seek auction sale. Appear before the Arbitrator and file a affidavit that you are not the debtor and you don’t know his address or his contact number. Arbitrator has no power to force you disclose his address or his contact number. Officially the bank cannot do anything but it may try unofficial methods like sending recovery agents to you house in that case you can complaint to police.
The amount due is a personal loan nature amount and any fix property cannot be attached against this outstanding however you are not responsible for making any payment on behalf of your brother you are appearing before the arbitration there you may offer some settlement procedure and ask for the time for settlement of account
I wonder when he is not bothered about the credit card loan then why are you worried for this.
If you pay his EMI then repay this loan as well.
Else leave to his luck.
appear before the arbitrator and file your reply to the notice which has been received by you. If possible share the contents of the notice here so that we can give you suitable advise.
1. The worst case scenario is that the Arbitrator will attach the property standing in his name.
2. The property will thereafter be sold to recover his dues.
The credit card bank/agency may initiate steps legally for r3overy of the outstanding loan against him.
If the present flat has been given as collateral security then they my lay their hand on it however if there is no collateral given by him, then they may have to initiate action on the basis of available information alone for recovery of loan amount.
If you have received the notice, you may simply send it back stating that the said person is not available in the said address, hence it may be served on him wherever he is residing, do not give the details of his current residential address.
In any case you cannot be held liable for the amount he has to repay to the bank.
Dear sir,
Please note that the whole matter is to be dealt between the bank and your brother. You need not worry about your position here. As far as the home is concerned, in case the award is passed against the brother, then the property can be attached by the bank. Worst case scenario is when the bank then seeks to get the due amount by selling that property. Thank you.
