Consultancy Agreement
This consultancy agreement, hereinafter referred as 'The Agreement', is made on this 14 day of
November 2024,
BETWEEN:-
M/s. Eresolution Consultancy Services Pvt. Ltd., having its operations/customer service office, at B-33,
Sector-2, Noida, UP, 201301, India on the first part, hereinafter referred as the FIRST PARTY, which
includes his/her successors in this office.
And
Shipra Shreya, date of birth , resident of Other, having e-mail id shipra.shreya14@gmail.com, the
second part, hereinafter referred as the SECOND PARTY or the Client.
And the first party and the second party together hereinafter referred as ͞the parties͟
WHEREAS the first party is involved in advising individuals in the matters of loan negotiation and
settlement of unsecured loans
WHEREAS the second party has indicated an inability to service the monthly loan installments and is
desirous of getting the loans negotiated and accordingly wishes to get consultation for the same from
the first party.
WHEREAS the first party agrees to provide consultancy service to the second party on some
terms and conditions.
WHEREAS both the parties want to write it down the various terms and conditions agreed upon them.
NOW THIS AGREEMENT WITNESETH AS FOLLOWS:-
1. The client has sought consulting assistance from the first party with respect to negotiation of
outstanding unsecured loans with the creditors of the second party. The first party has agreed to
provide consultancy services with respect to the loan negotiations & settlement with the creditors of
the second party. The second party authorizes the first party to communicate with creditors. The first
party will undertake to communicate with only those creditors listed in Annexure A. The second party
may have other creditors than those listed in Annexure A but such creditors would deemed to be out of
scope for the purpose of this agreement.
2. The first party has agreed to provide consultancy to the second party based on
significant expertise and skills in the area of financial negotiations and debt resolution, which are
valuable to the second party in view of their financial difficulties and inability to fulfill their loan
obligations.
3. First Party Obligations
a. The first party has developed a detailed process and methodology for its clients to reduce
their debt burden through debt settlement achieved via financial discipline and negotiation
with their lenders and accordingly, as part of the consultancy service, would provide the second
party a financial mechanism to accumulate necessary savings in order to initiate negotiations
with the creditors at the appropriate time.
b. The first party will provide recommendations to second party regarding potential settlement
options based on the discussions and negotiations with the relevant creditors.
c. The first party will provide second party with relevant information, guidance and training
regarding their rights as bestowed onto them by the government and other important
regulatory institutions.
d. The first party will provide the second party with draft paperwork, vetted by its legal panel,
which the second party can utilize for communicating with relevant creditors and their
representatives including collection agencies.
e. The first party will assist the second party in reviewing all the data and evidence necessary to
communicate with the relevant creditors and if required take support from government and
regulatory institutions to stop any harassment and provide ready documents for any litigation
at a future date.
f. As per RBI guidelines and Supreme Court judgments, banks only have legal recourse and in no
circumstances can use coercive measures for recovery. In spite of the laid down rules, if the
second party faces any harassment, the first party will immediately take necessary steps to
lodge complaints with bank nodal officer / ombudsmen, RBI and enforcement agencies. The
first party will also use this evidence to negotiate and settle better terms with the relevant
creditor(s).
g. The first party would enter into negotiations with creditors on behalf of the second party
from the funds in the second party͛s client account as mentioned in Annexure C. In case of
multiple creditors, the negotiation would happen on situational basis.
h. The first party would inform the second party by email, any communication it receives from
the creditors including settlement offers if any.
i. The first party will monitor the financial mechanism established under this agreement to
ensure financial discipline and adherence to the savings plan set forth in the agreement in
Annexure C.
j. The first party relies on a panel of lawyers for any litigation support required by its clients.The
current agreement includes legal representation in lok adalat/arbitration/Legal notices. In case
required, the first party would provide the second party options in terms of available lawyers
from its panel. The second party would be free to engage one of the lawyers presented by the
first party or take any outside legal assistance for any litigation or legal representation.
k. The first party will inform the second party by e-mail and SMS of the agreed dates for
transfer of funds for purpose of saving for settlement to the second party͛s loan settlement
account. The first party would inform dates five days in advance so as to give enough time to
the second party to arrange the necessary funds.
4. Client Obligations
a. The second party understands that the first party has agreed to consult and assist the client
only because the client is in financial difficulty to service their loan obligation and does not
have the expertise to go through the process of negotiation and settlement of their loans
themselves.
b. The second party agrees to consider the recommendations of the first party regarding any
potential settlements.
c. The second party agrees to pay the monthly fees of the first party each month as per
prescribed dates (referred to as ͞debit 2 date͟Ϳin Annexure C, in order for the first party to
provide uninterrupted consulting services.
d. Both parties will deal in a professional manner during the tenure of the agreement and will
escalate any issue as prescribed in the agreement.
e. The second party authorizes the first party to disclose to any of the creditors any information
concerning the client͛s financial condition and status including, but not limited to, income,
debts, credits, and location information; and obtain necessary financial information concerning
Client from any of the creditors.
f. The second party agrees to take any communication from the first party regarding failure of
funds transfer for the purpose of saving to loan settlement account as urgent and important
and make necessary arrangements for funds in order to complete the funds transfer within one
working day.
g. The second party shall disclose to the first party any pending court cases or any litigation at
the earliest. The second party agrees to immediately alert the first party in the event of a major
change in the financial status such as job loss, undertaking of any new loan, starting a business,
sale of asset, etc. The second party also agrees to inform the first party in case of any address
change, phone number change, etc.
h. The second party agrees to forward all important online and written communication it has
received from creditors. The client agrees that future communication including and not limited
to telephone calls and meetings with the creditors and any online and written communication
would also be shared with the first party.
i. The second party understands that the creditors could approach either party with a
settlement offer during the tenure of the agreement. In the event that the creditors approach
the second party with a settlement, the second party will provide necessary information to the
first party in writing within 2 working days of receiving the settlement offer.
5. Client understands and agrees that
a. This agreement constitutes the entire agreement between the parties, and overrides any and
all prior written or oral agreements between the two parties.
b. The second party understands that given the current financial difficulties, taking any fresh
loans will only push the client into a deeper debt-trap with serious consequences including
drop in credit scores etc.
c. The second party understands that in case of credit cards if minimum amount due or MAD is
paid, the lender(s) will apply annual interest charges in the range of 40 to 45 percent. The
principal amount reductions will hence be marginal given the high interest charges and other
charges. This leads the second party into a debt trap and also leads to a drop in their credit
score. The second party also understands that in case of personal loans there is no provision of
MAD.
d. Negotiation with the creditors is a dynamic process and if the second party follows financial
discipline and the procedures outlined in this agreement then a settlement can be reached
though the actual settlement timelines may vary from those presented.
e. Second party understands that the first party will initiate negotiations with the creditors of
the second party from funds that have accrued in the client account as mentioned in Annexure
C.
f. Negotiation with creditors will continue even in the event that a law suit is filed by the
creditors.
g. The outcome of the loan negotiation process will depend on several factors including and not
limited to client income, family income, relevant assets, timelines, creditor policies etc.
h. The second party will open a new account or assign an existing account for the purpose of
saving for loan settlement and will be in complete control of the loan settlement account and
operate the account on a day to day basis. The second party will make payments only to the
first party and the lender(s) through this settlement account.
i. The collection activities including call follow ups of the lender(s) will continue during the
negotiation process. The first party will provide voice mail services to manage call follow ups.
WhatsApp calls from lender(s) need not be picked up.
j. We have different associates to handle different buckets (same as before). In addition, if your
associate doesn't change every 3 months please raise a ticket and escalate the matter since it's
important that you have the relevant subject matter expert advice you as you move from one
bucket to the next in the settlement process.
k. Not all debts are eligible for loan settlement. Second Party should consider loan settlement
only if they are in financial distress and unable to pay their loan EMIs.
l. Loan settlement is the discretion of the lenders and only they can issue the settlement
letters. Second party understands that the first party can provide assistance and does not have
any authority to issue such letters.
m. The second party understands that any future loan is the sole discretion of the lender(s) and
that credit scores are indicators that are published by third party agencies and not by the
lender(s).
6. Tenure - The first party expects to amicably close the matter with the lender(s) in 6 months. Both
parties can mutually agree for any extension/ renewal of the agreement on expiry of the current
agreement. In the event of an extension, both parties agree to sign a new agreement.
7. Communication:- Both parties agree that given the sensitivity of the matter, the mode of
communication between the two parties will be in writing, between the operations and customer
service office of the first party at the email id or address mentioned in the agreement and the email id
or address mentioned above of the second party. It is made clear by the first party to the second party
that the local offices of the first party, if any, are not involved in the service delivery. Both parties are
liable to intimate the other party in case of change of address if any.
8. Initial Fee & Monthly Fee ʹThe second party agrees to pay the first party initial fee of Rs. 50/-
towards initiating the process. The monthly fees payable to the first party are listed in Annexure C and
are for its continued monthly services and are nonrefundable. GST and applicable taxes will be charged
as applicable.
9. Voice Mail Service ʹThe second party agrees to pay a monthly fee for voice mail services. In case
monthly fees is delayed voice mail services will stop. In case client renews, client will receive a new
telephone number from the first party.
10. Early Settlement ʹLenders are expected to send settlement letters early in the process. In case
of small outstanding amounts, letters can be expected by the third month or so. For larger
outstandings, letters can come in 4 to 6 months. Some lenders will correspond faster than others.
Second party has the right to accept or reject offers made by the lender in consultation with the first
party. The agreement can be closed earlier in case of an early settlement with the creditors. The second
party agrees that the first party will be entitled to its full fees as per Annexure C in case of an early
settlement as it is a preferred outcome for the second party. If all accounts are settled before the
expiry of the agreement, then the fees for the remaining duration as per Annexure C is not payable.
11. Delayed Payments ʹThe second party understands and confirms that if any monthly transfer of
funds to the loan settlement account is not made on time, service delivery from the first party could be
impacted. In case of repeated but short delays of upto two days, the first party will escalate the matter
to the second party. In case the second party does not correct the situation and the funds transfers
continue to be delayed, the first party has the right to levy additional service charges for excessive
follow-up for up to ten percent of the monthly fee. In the event that there are lengthy delays of more
than seven days, the first party has the right to terminate the agreement.
12. ESCALATION:-In case the second party has any grievance at any time during the period of the
agreement, the same can be escalated by sending an email as per the following step by step procedure:
Level 1: escalation@lawyerpanel.org
Level 2: operations.head@lawyerpanel.org
Level 3: nodal.officer@lawyerpanel.org
The second party must first write to level 1 escalation email address and only escalate further step by
step if not satisfied with the resolution provided at the previous step. Any escalation not following the
prescribed procedure will be handled by the escalation team or transferred to legal team of the first
party for appropriate response and resolution.
The first party can also escalate to the second party in case of delayed transfer of funds to the loan
settlement account or in case the second party fails to meet any of its other obligations.
13. Termination - Either party may cancel the agreement at any time, by giving written notice and
citing reason for the termination. The first party may terminate the agreement in case the second party
does not fulfil its client obligations as described in this agreement. The second party agrees that fees
paid to the first party up to that date is not refundable since the first party has provided consultancy
services for that time period.
14. Chargeback:- The second party agrees that there is no provision for chargeback of first party fees
in case the first party fees under this agreement has been paid through a credit card.
15. WARRANTY:- In any circumstances, the liability of the first party is limited to the fees paid by the
second party to the first party as per the agreement.
16. INDEMNIFICATION:ʹThe second party agrees to indemnify the first party against any losses,
claims and/or damages that the first party may be subjected to due to non-compliance of loan
repayment or settlement by the second party.
17. FORCE MAJEURE:- In the event of the Force Majeure, neither party shall be considered in default
in the performance of their contractual obligations under the Agreement. Events of force Majeure
include act of God, earthquake, fire, explosions, plague or epidemics, or as a consequence or restriction
by law or regulation of any government. In case of force Majeure the affected party shall promptly
notify the other party in writing and furnish all relevant information thereto within one month of
occurrence of the event of Force Majeure.
18. CONFIDENTIALITY:- The first party is bound to keep the confidentiality of the particulars/
information of the second party and the second party is bound to keep the confidentiality of the
materials/ information/ know-how connected with training and consultancy provided by the first party.
19. JURISDICTION/LEGAL:- The courts in Delhi shall have exclusive jurisdiction on any issues arising
out of or connected with the present agreement. In case of disputes if any, the aggrieved party shall
follow the escalation mechanism prescribed in the agreement and if not satisfied with the redressal
provided through the escalation mechanism, serve notice to the opposite party addressing the
grievances before initiating any legal actions/complaints, and the opposite party is bound to redress
the grievances or in the alternative to give satisfactory reply within 30 days of the receipt of the notice
and if not satisfied by the reply, the aggrieved party can approach the courts of law in Delhi or Delhi
International Arbitration Centre for the appointment of an arbitrator under the Arbitration and
Conciliation Act in its amended forms and the decision of the Arbitrator shall be final.
20. Both the parties signing this agreement are competent to enter into the present agreement, read
and understood the various clauses stated above, and is signing below after understanding the same in
its correct perspective.
FIRST PARTY SECOND PARTY
NAME: NAME:
Signature: Signature:
Annexure A - Client & Creditor Information
Items Details
Name Shipra Shreya
PAN Number
Date of Birth
Phone Number 8002393440
Email shipra.shreya14@gmail.com
Start Date 16 Nov 2024
Bank Name Loan Type (PL/CC) Loan Amt (Balance)
Other (Uni Card) Credit Card 45,000
Axis Bank Credit Card 317,766
South Indian Bank Credit Card 84,549
RBL Bank Credit Card 123,018
Other (Navi) Personal Loan 450,581
Other (Kisetsu Saison) Personal Loan 75,053
Other (DMI Finance) Personal Loan 68,740
Total 1,164,707
Annexure B - Minimum Amount Due Calculations
Month Opening EMI Interest Principal Closing
1 5,70,333 28,516 20,912 7,604 5,62,729
2 5,62,729 28,516 20,633 7,883 5,54,847
3 5,54,847 28,516 20,344 8,172 5,46,675
4 5,46,675 28,516 20,045 8,471 5,38,204
5 5,38,204 28,516 19,734 8,782 5,29,422
6 5,29,422 28,516 19,412 9,104 5,20,318
7 5,20,318 28,516 19,078 9,438 5,10,880
8 5,10,880 28,516 18,732 9,784 5,01,097
9 5,01,097 28,516 18,374 10,142 4,90,954
10 4,90,954 28,516 18,002 10,514 4,80,440
11 4,80,440 28,516 17,616 10,900 4,69,540
12 4,69,540 28,516 17,216 11,300 4,58,240
Total 3,42,192 2,30,099 1,12,093
Annexure C ʹTargeted Plan
Client Name: Shipra Shreya Prepared By: Adv. Ankit Chopra
Total Loan: Rs.1,164,707
Agreement duration: 6 months extendable by additional 12 months if required
Legal consultancy fees: as per due dates below
Settlement Range* Rs.349,412 to Rs.465,883
Settlement Duration** 3 - 12 months
*this is based on past precedents. Each case is unique and at the discretion of the lenders
**to get faster settlements, save as much as possible on monthly basis
Legal consultancy fee schedule
Month Legal Fees Due Date
1 12,812 16 Nov 2024
2 12,171 16 Dec 2024
3 11,563 16 Jan 2025
4 10,985 16 Feb 2025
5 10,435 16 Mar 2025
6 9,914 16 Apr 2025
Annexure D - Confirmation of First Contact
I, Shipra Shreya expressly confirm that I have not received any financial proposal from M/s
Eresolution Consultancy Services Pvt. Ltd. prior to 14 Nov 2024 for the purpose of loan
settlement / loan restructuring. I understand that the first party provides settlement assurance
policy only in select cases after careful examination of the case.
I understand that I may not be entitled to such an assurance policy if I have contacted the
company in the past since with passage of time my case may have weakened and it may not be
possible for the first party to give me the assurances which were provided earlier.
In case I have contacted the first party earlier with a different name, contact number, email
etc. the first party is entitled to
ͻWithdraw the settlement assurance (if any has been provided)
Executed
14 Nov 2024
Annexure E - Confirmation no Demand Notice
I, Shipra Shreya expressly confirm that I have not received demand notice / arbitration notice /
legal notice from any of the lenders described in Annexure A as of the date of signing this
agreement. I understand that the first party has a significantly higher fee structure in case I do
not furnish information regarding any notice prior to signing of this agreement and the first
party is entitled to such higher fee structure if I suppress any similar information. Such fee is
only chargeable due to deliberate suppression of such information, given the legal fees which
needs to be incurred to represent my case and provide solution to the legal complications that
may arise.
I understand that the upfront fees in such situations is INR 40,000 (Rupees forty thousand
only).
In case such information is SUPPRESSED by me at the time of agreement signing the first party
has the option of
ͻClaiming the above upfront fees from me or
ͻTerminating the agreement in the absence of payment of above dues
Executed
14 Nov 2024
Annexure F - Confirmation of in-hand monthly income
I, Shipra Shreya expressly confirm that my monthly in hand income as of
14 Nov 2024 is INR /- per month after deductions.
I understand that settlement with lenders is a complex process and income is a significant
factor in ongoing negotiations with lenders. I understand that if I provide factually incorrect
income, the same can make my case weaker during negotiations.
In case I have provided incorrect income information the first party is entitled to
ͻseek past income proof in coming months based on attested bank statements
ͻmodify the financial proposal suitably in case income is revised
Executed
14 Nov 2024
Annexure G - Permission Letter to Communicate with Creditors and Collection Agencies
I, Shipra Shreya expressly authorize Eresolution Consultancy Services (Company), its agents
and representatives to communicate and negotiate with lenders and their collection agencies
and to settle the loan amounts on my behalf in discussions with my creditors.
The Company is entitled to
Obtain on my behalf, records, debt validations and support for the debts allegedly owed by
me.
Communicate and negotiate with banks, creditors, financial institutions, licensed collection
agencies, and all other related entities and individuals relating to my debts.
Signature:
Date: Executed
14 Nov 2024
Place:
Annexure H - Undertaking
I, Shipra Shreya hereby authorize and appoint M/s Eresolution Consultancy Services Pvt. Ltd.
to settle the loan amounts on my behalf in discussions with my creditors.
Signature:
Date:
Place:
