Regarding civil suit under BNS 316/318/351/61

Dear Client,

Loan Default is Civil, Not Criminal: Failing to repay an unsecured personal loan is a civil matter. Mentioning criminal sections (BNS) is a standard pressure tactic by recovery agents. You cannot be arrested for simple inability to pay.

Time-Barred Debt: The default happened in 2021. Civil suits filed after 3 years (November 2025) are generally barred by the Limitation Act.

Verify the Notice: Check if the document is an actual Court Summons with a case number or just a recovery notice.

Hope this answer helps!

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OLQ LAW FIRM

Dear client, 

Firstly, A simple loan default is only a civil matter, not a criminal offense under the Bharatiya Nyaya Sanhita unless initial fraudulent intent is proven. Moreover, since the default occurred in 2021 and the action was initiated in late 2025, any civil recovery claim is legally time-barred under the Limitation Act’s three-year window, assuming you made no interim payments or acknowledgments, also verify whether the notice is an actual court summons or a pressure tactic by checking the eCourts portal.

However, if a genuine case is pending in Kolkata, file an application through an advocate under Section 355 BNSS seeking exemption from personal attendance and requesting video conferencing from Delhi. Your lawyer can move for the dismissal of criminal charges by showing that a contractual default does not constitute a crime. Do not ignore formal court notices, as non-appearance can prompt warrants regardless of jurisdiction.

Lastly, for settlement, write directly to Kotak’s Principal Nodal Officer or request resolution through a National Lok Adalat, aiming for a compromise around 35–50% of the principal. Never pay any amount without first securing an official written Settlement Letter directly from the bank guaranteeing full case withdrawal and a subsequent No Dues Certificate.

I hope this answer helps, if you have any other query kindly do not hesitate to contact us. Thank you.

Dear Client,

It is necessary to identify the exact nature of proceedings launched by Kotak Bank. The loan default could lead to civil recovery proceedings; however, there could be a criminal case if the allegations made in the complaint amount to elements of a crime. Thus, one should first obtain an FIR/complaint and the notice issued by the court along with the loan agreement and payments in order to decide on the further steps.

As for the sections discussed, Section 318 of Bharatiya Nyaya Sanhita, 2023 (BNS) relates to cheating, and Section 316 is related to criminal breach of trust. Cheating usually involves fraud and inducement, and such an element should ordinarily be present at the very beginning of the transaction. A subsequent inability to repay a loan, by itself, does not establish such dishonest intention.

Section 316, however, has different ingredients and concerns criminal breach of trust involving entrustment and subsequent dishonest misappropriation or conversion. Thus, it is wrong to conclude that Sections 316 and 318 would apply simply because the borrower later fails to repay the loan.

In the same manner, Section 351 BNS deals with criminal intimidation, whereas Section 61 deals with criminal conspiracy. These two provisions have their own distinct elements, which cannot be established through a mere loan default.With respect to jurisdiction, if the loan has been disbursed, your EMIs are being paid and you do not have any link whatsoever with the city of Calcutta, it is possible to contest whether the Calcutta court even has territorial jurisdiction over this issue especially if it was done as a criminal case rather than an arbitration provision of the loan contract. Do not ignore any summons received, since non-appearance can lead to further complications including warrants. We would recommend engaging an advocate to first ascertain the exact nature of the proceeding and examine jurisdiction, while separately continuing settlement discussions directly with Kotak's recovery or collections department, since a One Time Settlement is often more achievable through that channel than through litigating counsel.

I hope this answer helps. If you have any further query kindly do not hesitate to contact us. Thank you.