Legal opinion on settlement of the loan account of Mr. x

Mr. Z

Address….

Dear Sir,

Re:  Legal opinion on settlement of the loan account of Mr. x

We refer to your letter dated 15.05.2006 on the above subject.

We have perused the documents/papers referred to us. We understand that Mr. x (the ”Borrower”) availed loan of Tk. 6,00,000.00 (Taka six lac) only from BANK 1. In order to adjust loan liability of the Borrower with BANK 1, the Borrower issued a cheque for Tk. 5,17,000.00 (Taka five lac seventeen thousand) only drawn on his account held with the BANK 1. On dishonour of the cheque for ‘insufficient fund’, BANK 1 filed Petition Case No. 3058 of 2003 against the Borrower under section 138 of the Negotiable Instruments Act, 1881. Upon hearing, the Metropolitan Magistrate, 20th Court, Dhaka vide its Judgment dated ________ punished the borrower with imprisonment for a term to one year and imposed fine for Tk. 6,00,000.00 (Taka six lac) only. In the said Judgement the Magistrate directed the concerned Collector to collect the fine and after realisation of the fine, face value of the cheque i.e. Tk. 5,17,000.00 (Taka five lac seventeen thousand) only to give BANK 1.

Now mother of the Borrower Ms. A vide her letter dated 14.05.2006 requested the BANK 1 to inform her the outstanding of her son’s loan account to adjust it. In such situation you have sought our opinion what will be the procedure and amount to be considered for full and final settlement of the loan account. In your letter dated ________ it appears that

In the letter addressing us you have shown a calculation of the loan account as on 15.05.2006. In such situation you have sought our opinion what will be the procedure and amount to be considered for full and final settlement of the loan account.

Our opinion:

We are of the opinion that in respect of amount of the face value of the cheque i.e. Tk. 5,17,000.00 (Taka five lac seventeen thousand) only under the Judgement passed in the Petition Case No. 3058 of 2003 by the Court of Metropolitan Magistrate, 20th Court, BANK 1 may receive

BANK 1 may consider principal outstanding, up to date interest and previous legal expenses as the total outstanding of the loan account. BANK 1 may inform Ms. A that the total outstanding of the loan account as full and final settlement amount. Any amount of waiver to the borrower to the extent of accrued interest and previous legal expenses is at the sole discretion of BANK 1.

In case of issuance Letter of Satisfaction for the loan account, BANK 1 must states thereon that BANK 1 did not receive any further amount of the face value of the cheque i.e. Tk. 5,17,000.00 (Taka five lac seventeen thousand) only under the Judgement passed in the Petition Case No. 3058 of 2003 by the Court of Metropolitan Magistrate, 20th Court, Dhaka.

If you have any further query, please do not hesitate to contact us.

Thanking you.

Yours faithfully

………………….

For: “The Lawyers & Jurists”

Disclaimer:

The information contains in this web-site is prepared for educational purpose. This site may be used by the students, faculties, independent learners and the learned advocates of all over the world. Researchers all over the world have the access to upload their writes up in this site. In consideration of the people’s participation in the Web Page, the individual, group, organization, business, spectator, or other, does hereby release and forever discharge the Lawyers & Jurists, and its officers, board, and employees, jointly and severally from any and all actions, causes of actions, claims and demands for, upon or by reason of any damage, loss or injury, which hereafter may be sustained by participating their work in the Web Page. This release extends and applies to, and also covers and includes, all unknown, unforeseen, unanticipated and unsuspected injuries, damages, loss and liability and the consequences thereof, as well as those now disclosed and known to exist.  The provisions of any state’s law providing substance that releases shall not extend to claims, demands, injuries, or damages which are known or unsuspected to exist at this time, to the person executing such release, are hereby expressly waived. However the Lawyers & Jurists makes no warranty expressed or implied or assumes any legal liability or responsibility for the accuracy, completeness or usefulness of any information, apparatus, product or process disclosed or represents that its use would not infringe privately owned rights. Reference herein to any specific commercial product process or service by trade name, trade mark, manufacturer or otherwise, does not necessarily constitute or imply its endorsement, recommendation or favouring by the Lawyers & Jurists. The views and opinions of the authors expressed in the Web site do not necessarily state or reflect those of the Lawyers & Jurists. Above all, if there is any complaint drop by any independent user to the admin for any contents of this site, the Lawyers & Jurists would remove this immediately from its site.