After serving Loan recall notice and follow up, if the customer failed to regularize loan overdue, we have provision to approach Civil court to recover the payable outstanding within the limitation period of 3 years. Limitation of 3 years will be considered from the date of last credit/payment by the customer. 

Stage & Process: 

• During the course of delinquency, after issuance of Loan recall notice bank is having provision to file Civil suit against the borrower at any point of time
• Usually we send legal notice to the borrower through registered post (RPAD) before filing Civil suit about outstanding reminder and to pay the dues within 15/30 days, also will mention the further consequences in the notice.
• If a customer fails to revert, the bank can move ahead for Civil proceedings. 
• Depends on the claim value bank has to deposit the refundable court fee. 
• Court fee will be varied depends on the claim amount.
• After filing the case, court will send notice/Summon to the responded (Customer) with mention the next date of hearing,
• Borrower/Respondent/Customer should appear before the prescribed court through his advocate to contest the case.
• Considering the fact of the claim and proof of document court may pass order in the interest of justice.
• If customer fail to appear even after aware about this case or received the Summon/ Notice, considering the Borrower ignorance court may pass ex-parte (when a decree/Order is passed by the court in the absence of the defendant/Borrower, it is called “ex–partedecree” ) order in favour of the bank.
• Once the order is passed by the court, an application for executionmust be filed within three years of the date of the final Order.
• Even after final order, the customer has rights to approach the higher court to challenge the order passed by the Lower court.       

Outcome:

• Considering the case and his liability customer may come forward to compromise and clear the dues.
• Customer may contest the case.
• During the course of trail based on court direction or on mutual consent case can be settled through Adalat.

Duration:

After filing a case, there is no time limit to disburse the case, it may take one year to ten years or more depending on stake.