RE: LEGAL OPINION REGARDING DEPOSITION OF RECOVERED AMOUNT IN A SUBJUDICE ACCOUNT.
We refer to your letter dated 01.03.2007 on the above subject matter. We have perused the queries referred to us and our comments in this regard are as follows:
Query Nos. 1:
If any amount that is received by the bank is deposited to any sub judice account, it may not hamper/affect the merit of the case, as there is no such legal bar/restriction. However, in such situation the amount, which will be paid to the bank has to be deducted from the claim amount of the suit by way of amendment of plaint.
So far as the Criminal Cases are concerned there are no restriction to deposit the amount received in any sub judice account. However in criminal cases which are compoundable in nature, the judgment of the case may be hindered as the defaulting borrower might be able to negotiate to be released from the offence in payment.
Query Nos. 2:
Deposition of recovered amount in bank’s Income account directly and reducing the borrower’s liability simultaneously in the off balance sheet account may not hamper/affect the merit of the case, as there is no such legal bar/restriction.
Should you require any further assistance, please contact the undersigned.
For: “The Lawyers & Jurists”