Legal Question in Banking Law in India

Banking law

If a person A has taken loan from bank B of 2 lakh-there is default in payment-B is asking for payment of 4lakh - A filed for determination of payment- proceeding took 10 years- can B can charge interest of period which whole issue was before court.


Asked on 10/17/08, 7:34 am

4 Answers from Attorneys
Sudershan Goel India Law Offices of Sudershan Goel - Advocate

Re: Banking law

The post/pending proceeding interest is determined by the court. You should better try to settle the matter with the bank to avoid any uncertainty. Possibly, the bank may settle for the suit amount and may waive the interest for the period for which proceedings remained pending in court. SOONER THE BETTER FOR YOU.

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Answered on 10/17/08, 7:47 am
Aniruddha Pawse Aniruddha.P.Pawse Advocates

Re: Banking law

Yes

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Answered on 10/17/08, 11:31 am
J. Radhakrishnan independent Practice

Re: Banking law

Interest does not cease merely because it is in court or in a Tribunal. Interest and age always grow unless the former is terminated by payment early to arrest accrual of interest.

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Answered on 10/19/08, 9:28 pm
Nasir Butt Nasir Law Associates

Re: Banking law

It is upto the circumstances of the case which are to be determined by the Court. Pendency of case is best opportunity to make settlement with bank. Usually banks write off the interest and accept the principle amount. Is it not good idea?

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Answered on 11/05/08, 9:05 am


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