In the capacity of president of Educational Society I have taken used vehicle loan dated 01-02-2019 on my existing bus from muthoot finance pvt ltd. During the covid -19 period I did not pay 10 consequent EMI of loan. The finance company took over the possession of vehicle on 05-01-2021.and send pre sale notice on 07-01-2021. And send the cheque bounce notice on 12-01-2021 by using empty Cheque which was collected for security at the time loan sanction . Later I have received post sale Notice on 10-12-2021.
Later company filed case U/ s 138 of NI act on 24-02-2022. But I did not get summons from the court till 22-08-2022. From this date onwards I am attending court regularly till now.
Simultaneously they appointed arbitrator on 02-06-2022
Arbitration Award given on 27-12-2022 for ₹5,34,670
My questions are
Cheque bounced before the sale of the bus for an amount of ₹ 1,31,400 .
Arbitration award given after the sale of the bus for ₹ 5,34,670
Finance company is contesting only in cheque bounce amount which was prior to bus sale.
Finance company not filed Execution Petition for arbitration award till now.
1. In this situation cheque bounced amount is legally enforceable debt before the sale of the bus?
