No Criminal case made out. Matter civil in nature of loan default. File FIR quash petition in High Court.

Also, FIR is filed without Jurisdiction.

Now they have sent summon for a criminal case ? Show summon 

Apply for and obtain Anticipatory bail from sessions court where case is filed against you 

criminal cases take over 10 years to be disposed of 

3) in case of any settlement arrived at you can file for quashing in HC 

- As per the RBI, the bank should give proper time and offers for the settlement of loan amount.,  on the ground of health and sudden loss 

- Since, you was paying the EMIs , and during the period of payment received , the bank never lodge a complaint against you that you have taken the said loan amount fraudulently and after submitting fake documents , it means that your loan was sanctioned to you as per norms and conditions of RBI ,and after adopting all the procedures. 

-  Further, if you defaulted the payment , then the bank has power to recover amount from you after filing a recovery suit before the Civil Judge and not a criminal Court . 

- Hence, the defaulted in payment of loan amount not a criminal offence under the said given sections , and hence the case filed by the bank is not maintainable .

- You can approach the High Court for quashing the FIR lodged against you 

- Further, you can also lodge a complaint before the RBI against the said bank for harassing a Senior Citizens .

If the bank has not followed up it's civil suit for recovery and instead approached the criminal law then it is a mistake on their part.

Since you have evidence about the civil recovery suit filed against you, better you file a quash petition before high court of that state and your quash petition will be considered on conditions that may be imposed by high court.

Loan default is generally a civil wrong, except in cases where there is fraudulent or dishonest intention on the part of the borrower at the time of availing the loan. The bank can file a civil suit against you for recovery of the loan amount, interest, and damages. The bank can also take possession of any collateral or security that you have pledged for the loan. However, the bank cannot file a criminal case against you for loan default, unless they can prove that you have cheated, misappropriated, or conspired to defraud them. The sections invoked by the bank are related to cheating, criminal breach of trust, cheating with knowledge of wrongful loss, cheating and dishonestly inducing delivery of property, cheating with intent to cause wrongful loss or wrongful gain, and criminal conspiracy. These are serious offences that can attract imprisonment and fine.

However, it is possible that the bank is filing a false or frivolous criminal case against you to harass and intimidate you into paying the loan amount. This is an abuse of the process of law and a violation of your rights. You have the right to defend yourself against such false allegations and seek legal help.

Here are some steps you can take to deal with this situation:

• Do not ignore the summon or warrant issued by the court. You must appear before the court on the date and time mentioned in the summon or warrant. If you fail to do so, you may be declared as an absconder or a proclaimed offender, which can worsen your situation.
• Seek legal advice from a lawyer who can guide you on how to deal with the criminal case and protect your rights and interests. You can also apply for anticipatory bail or regular bail if you are arrested or likely to be arrested.
• Challenge the jurisdiction of the court where the bank has filed the criminal case. If the court is in a different state 2000 km away from your and your business location, you can argue that it is inconvenient and unfair for you to attend the proceedings there. You can request the court to transfer the case to a court near your location or quash the case altogether.
• File a counter-complaint against the bank for filing a false and malicious criminal case against you. You can also file a complaint before the Banking Ombudsman or the Consumer Forum for redressal of your grievances. You can claim compensation for mental harassment, defamation, and violation of your rights.
• Negotiate with the bank for an amicable settlement of your loan account. You can explain your financial situation and offer to pay what you can afford. You can also request the bank to waive off some interest or penalty charges. You can seek the help of a mediator or a counsellor to facilitate the negotiation process.

Generally, banks do not lodge any criminal complaint for a simple loan default unless there is a fraud or misrepresentation. Please furnish full details of the criminal charges against you so as to enable me to offer you proper advice. OR, please engage a competent lawyer practising criminal law and seek his advice.

Dear client,  

Negotiation for Settlement: Continue to negotiate with the bank for a reasonable settlement amount. It's essential to have these discussions in writing and document all communication.

Appear in Court: It's important not to ignore the court summons. You should make arrangements to attend the court hearing in the different state or engage a local attorney in that state who can represent you.

Exploring Legal Defenses: Your attorney can assess your case and explore potential legal defenses based on the facts, such as the impact of COVID-19 on your business.

Bail and Arrest: If there's a possibility of arrest, discuss the matter with your attorney. They can advise you on seeking anticipatory bail or other legal remedies to prevent arrest.

Lok Adalat and Civil Suit: Discuss the non-attendance of the bank at Lok Adalat and previous civil suit hearings with your attorney. These issues may be relevant to your defense.

Financial Proof: Provide evidence of your financial situation, including your inability to pay the settlement amount. Your attorney can use this as part of your defense.

Mandatory Presence: Ensure that you or your attorney appears in court as required, as failure to do so can lead to adverse consequences.

You can contest the same on merits. You can also go for criminal case quashing