My friend Mr A had taken a loan from a private bank in Sep 2019. During 2020 Covid, he had taken moratorium for 5 months and had not paid for another 6 months as the SC stay order on NPA classification was in force all over india till 23rd March 2021. However his bank declared his account as NPA in violation of this SC court order on 5th March 2021 itself. My friend Mr A cleared his outstanding in April 2021 and started repaying his EMI regularly as he was promised that his NPA,status would be revoked and thus was given in writing by the bank officials. However, even after 1 year they could not revoke his NPA,status as the bank was taken over by another bank and they said nothing can be done an his NPA status will continue. My friend Mr A stopped paying his EMI in 2022 as he alleged contempt of supreme court order in this case. However he did not file any case or police complaint in this regard. The bank also stopped pursuing this loan and for the past 1 year, they have kept quiet. My query for Mr A is . 1. Can the bank pursue a legal option of case under cheque bounce under NI act after they committ contempt of court? 2.can the borrower file contempt of court case? 3. What is the limitation period for contempt of court case if it is to be filed by mr A who is not a direct respondent/litigant party in that interest on interest case in the SC in which the stay order on non declaration of NPA on all accounts that had taken moratorium was announced. 4. What is the limitation period for bank to pursue legal option in this case. The last payment done by Mr B was over an year ago. There is another friend Mr B who also borrowed in September 2019. He also took 5 months moratorium and later on did not pay till March 2021. He did not clear any outstanding, but after the NPA stay order was vacated he started paying in April 2021. The bank declared his account also as NPA on 5/3/2021 in contempt of SC order. However he too stopped paying his EMIs over a year ago and when tge bank approached him, he too quoted the same reason that the bank has first committed contempt of court and that the bank needs to reverse it first. The bank has not pursued any legal option in his case also in the past 1 year. My query for Mr B is . 1. Can the bank pursue a legal option of case under cheque bounce under NI act after they committ contempt of court? 2.can Mr B file contempt of court case? 3. What is the limitation period for contempt of court case if it is to be filed by Mr B who is not a direct respondent/litigant party in that interest on interest case in the SC in which the stay order on non declaration of NPA on all accounts that had taken moratorium was announced. 4. What is the limitation period for bank to pursue legal option in this case. The last payment done by my friend Mr B was over an year ago. 5. Is this criminal contempt of court or just a normal contempt case committed by the bank? 6. Do my friends need to repay the loan?
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2) bank can file complaint under section 138 NI in event of dishonour of cheque
2) bank can take legal Proceedings for recovery of balance amount within period of 3 years of last payment
3) you can take defence that account t was wrongly declared as NPA in contravention of SC judgment
4) you ought to have taken legal proceedings against declaration of account as NPA
5) you must repay the loan
A. 1. Yes bank can initiate cheque bounce case also
2. If the borrower was a party to the SC case then he should have filed the contempt of court case at tht time itself instead of clearing the outstanding loan and started to repay the loan even being aware of an order by the apex court.
3. If A is not the party to the case decided by SC then he cannot file a contempt of court case against the bank.
4. The bank can initiate legal action even now as the NPA is still continuing
B 1. If the bank has committed contempt of court act then where is the complaint against them, there has to be any aggrieved person to file the case, without it, there is no contempt of court reported
2. B should have filed the contempt of court case at that time when the bank did this act and not now.
3. If B was not the respondent in that case before supreme court, then he cannot file contempt of court case against the bank.
4. The bank can initiate legal action even now especially the fact is that the NPA declared against the borrower has not been revoked.
5. If B has not been a party then he cannot file contempt of court against the bank.
6. Yes, it becomes his duty to repay the loan with accrued interest.
Is this an academic query or are you connected with this ?
1. The bank has its right to recover the loan amount from A , and for that the bank can file a recovery case
2. Yes, unless A will have no order from the court in his favor , the bank will not stop its proceeding
3. Mr A should issue a legal notice to the bank before filing the contempt petition , and the period is depend upon the burden of the court
4. Three years in case of personal loan
Bank can initiate 138 case against the drawer of cheque
limitation for contempt is 1 year
criminal conspiracy is decided after going through entire incident
Dear client
For Mr. A:
Regardless of any contempt of court issues, the bank may still pursue legal action under the Negotiable Instruments Act (NI Act) if Mr. A's checks bounce. Additionally, Mr. A may file a case for contempt of court against the bank for violating the Supreme Court order, as long as he does so within the applicable statute of limitations. The statute of limitations for bringing a contempt of court lawsuit varies based on the particulars and the relevant jurisdiction. Mr. A should speak with an attorney to find out when the statute of limitations will apply to his case. The bank may still take legal action under the NI Act for the returned checks, but the exact statute of limitations would rely on the nature of the loan agreement and the applicable legislation in the particular jurisdiction.
For Mr. B:
Yes, in the event that Mr. B's checks bounce, the bank may file a lawsuit under the NI Act, just like in Mr. A's case. Yes, if Mr. B files a lawsuit for contempt of court within the relevant statute of limitations, the bank will be held liable for disobeying the Supreme Court's ruling. Regardless of any potential contempt of court difficulties, both Mr. A and Mr. B are still legally required to repay the loan in accordance with the terms of their agreements with the bank. Legal repercussions, including possible bank enforcement measures, could follow nonpayment of the debt.
