Legal Notices and Arbitration Proceedings Regarding Loan Defaults

Z. SANWARWALA & COMPANY - Loan Recall Notice and Arbitration Process Notes

Introduction

  • This document pertains to legal notices and arbitration proceedings involving Bandhan Bank Limited and certain borrowers.
  • Legal proceedings are initiated due to defaults under loan agreements related to vehicle loans.

Loan Recall Notices

Notice Details
  • Client: Bandhan Bank Limited
  • Borrowers:
    • Satbir (Borrower)
    • Roshani (Co-Borrower)
  • Loan Account Number: 72230000440629
  • Loan Original Amount: ₹2,275,000 (Two Million Two Hundred Seventy-Five Thousand)
  • EMI (Equated Monthly Installments): ₹50,480
  • Loan Agreement Date: 27-09-2023
Security and Defaults
  • Secured Assets: Hypothecation of movable property/assets was provided as security for loan repayment.
  • Defaults: Multiple defaults were reported in the payment of EMIs and communication regarding dues.
Recall of Loan Notice - Key Points
  1. Defaults Noted: The borrower failed to make necessary payments despite repeated reminders.
  2. Outstanding Amount: As of 26-11-2025, total outstanding amount noted as ₹1,586,064.84 comprised of:
    • Principal outstanding: ₹1,495,320.00
    • Pending EMIs: ₹89,310.84
    • Arrears: ₹1,434.00
  3. Legal Actions: Possible legal actions include:
    • Civil proceedings
    • Arbitration proceedings
    • Criminal proceedings for breach of trust.
  4. Immediate Payment Demand: Borrowers are requested to pay the outstanding amount within 10 days.

Legal Implications Under Arbitration and Conciliation Act, 1996

Notice Issuance
  • Arbitration Notice Date: 19-12-2025
  • Purpose: To invoke arbitration due to failure in meeting repayment dues under loan account 72230000440629.
  • Cited Legislation: Loan cum hypothecation agreement allows disputes to be referred to arbitration.
Arbitration Proposal Structure
  1. Selection of ODR Institution: Borrowers advised to choose an independent ODR (Online Dispute Resolution) institution.
  2. Deadline to Respond: 15 days to confirm choice of institution or raise objections.
  3. Failure to Respond Consequences: Lack of response will be taken as tacit acceptance of proposed arbitration.
  4. Arbitration Procedure: Proceedings to be conducted online; communication via provided emails and phone numbers.
Final Resolution and Remedies
  • Claim Granted Amount: ₹1,347,134 due as of 05-09-2025 with applicable interest at 9.10% until realization.
  • Repossession Order: In the event of default by the borrower, the claimant has the right to repossess the vehicle secured under the agreement.
  • Costs Order: Claimant granted Rs. 5,000 towards legal expenses.

Conclusion

  • Legal Framework: All actions are grounded within the Arbitration and Conciliation Act, 1996.
  • Precedents Noted: Previous case law indicating the enforceability and legitimacy of loan documents and arbitral awards.
  • Contact Points for Borrowers: Continuous communication channels to reassure cooperation and resolution discussions are available.

End of Notes.

References and backup documents pertaining to legal notices and proceedings were compiled to ensure comprehensive understanding and adherence to statutory requirements during arbitration processes.