Loan
dhawal
(Querist) 08 February 2013
This query is : Resolved
case- A business loan from HDFC bank O/s around 70000/- around 40% of loan availed. i unable to pay because of business loss that business on which loan taken is almost closed and
HDFC bank passed the case to the arbitrator and arbitrator awarded the case and ordered to pay outstanding dues with 12% interest and from the same bank my car loan is also pending which is regular and only 2 installments are pending.
my question is-
1) Can bank take possession of car and recover the amount which is not related to business loan.
2) If not, how can they recover due amount because business is closed which is the base of loan.
3) After the award of arbitrator now where i can appeal, do i having a right to ask him reopen the case.
4) now after all these do i am in the position to approach bank for settlement of case.
5) BUT MOST IMPORTANT IS ABOUT MY CAR IT IS SAFE OR NOT.
Adv Raj (High Court)
(Expert) 09 February 2013
1) Yes bank can .
2) The bank can approach the court and attach your property for amount recovery.
3) If the arbitration was with your mutual consent and if the award by arbitrator was also by mutual consent then you cannot appeal.
4)Yes you can approach the bank if you are ready to pay the amount and ask them to cancel the case against you.
5) No , your car is not safe
dhawal
(Querist) 09 February 2013
thank you very much for your advice.
but arbitration is not by mutual consent so where i can appeal for stay order can i ask him to reopen the case.
another thing is my financial condition is weak and car is only source of earning for moving stock. can i defend my self by showing financial records i want to pay the loan but only i need is time.
or if i taken NOC from bank by paying remaining inst. then still they having right to sell my car.
Adv Raj (High Court)
(Expert) 09 February 2013
If it was not mutual then approach the concerned high court for stay Mr. dhawal
Good luck
dhawal
(Querist) 09 February 2013
thank you.
Adv Raj (High Court)
(Expert) 09 February 2013
Mr. dhawal approach the bank first and pay the instalments if possible, and ask for a NOC from them showing all the facts you mentioned here that car is the only way of earning for you. even if the bank doesnt agrees then straight away approach the high court and get a stay against the orders of arbitrator and bank, as well as seek for injunction to not to attach your property unless the case is resolved by the court.
Santosh Sharda
(Expert) 09 February 2013
Outstanding being too small, it does not make sense to go into the expense of approaching any higher court. Better to approach the bank and settle the matters together.
Raj Kumar Makkad
(Expert) 09 February 2013
I fully endorse the detailed advice of Ra Singh.
dhawal
(Querist) 09 February 2013
Thank you all for your kind advice.
RAJU O.F.,
(Expert) 09 February 2013
Even though car loan is almost regular, since the other loan is defaulted, bank can classify both accounts as NPA and initiate recovery. Settle the matter amicably with the bank even by selling the car.
