Less Examined Public Interest Issues : "Burden of Unsustainable Debt" and imprisonment u/s 138 of Negotiable Instrument Act.
Prior to criminalisation of check dishonour, the Banker's used to examine customer's "Earning of last three years and his capacity to repay loan". Then only they used to give loan.
After the criminalisation of check dishonour law, the banks are offering "unsustainable debt" to customers against their properties.
Since the debt is an "unsustainable debt", within an year or two, the customer will be in no position to repay debt.
Then he will face criminalisation under check dishonour law and his property will be auctioned away at throw away price under SARFAESI Act.
The unexamined question of law here is concept of "Unsustainable Debt". It is something above the provisions of Contract Act.
In such cases in trial court or at notice stage, the defense of "unsustainable debt", must be pleaded and proved. Definition of "Unsustainable Debt" can be found on internet.
To me, it seems that these areas of law requires some research.
(C) Haresh Raichura 25/6/20
#law #sarfaesiact #banks #loans #cheque #dishonour