Repossesion of commercial vehicle after late payment
Pranav S. Thakkar
(Querist) 28 August 2012
This query is : Resolved
Dear Sir,
My client had paid 12 installments of 46 regularly...for purchasing commercial vehicle by Hire purchase method. Then Due to Accident he could not pay installments 3 months. Company did not use any cheque given by client. Then suggested client to repair a vehicle , he sent that vehicle to get repaired. Then After vehicle repaired...n The man recovered from injury. He paid the installment in a bank account as sufficiant fund for that installment so that company can use the cheque given them for installment, so cheque was not dishonored due to insufficiant fund, so client was not guilty about pay installment. but after paying the installment that Finance company did not try to get installment n seized vehicle without notice. When my client show readiness required amount to get back vehicle, they said vehicle had been sold. In the district forum, they said that party is as defauter. n District forum interpretated that client is guilty to pay loan installment. In Appeal, to take case in favour, can u please suggest Any Judgment for case n remedy to get vehicle back?
ajay sethi
(Expert) 28 August 2012
district forum has held that complainant is a defaulter and has failed to pay installments on time . in appeal you have to satisfy state commission that you are not a defaulter . have paid 12 installments on time . only 3 installments were not paid on account of accident .
it is necessary to go through the agreement isgned by you with hire purchase company . provisions relating to seizure and sale of vehicle .
Guest
(Expert) 29 August 2012
Refer the guidelines RBI drafted pursuant to the judgment delivered by Apex Court in the case of ICICI.
Pranav S. Thakkar
(Querist) 29 August 2012
Respected Sir...Thnaks For suggestion n judgment....But is that is major point that installment is paid later as due to accident and before seizing the commercial vehicle...then cheque for installment is neither used or nor dishonoured and notice for seize vehicle has not sent to the client...Is that sufficiant to prove that there is deficiancy in service.!?
Guest
(Expert) 30 August 2012
RBI pursuant to the Judgment of ICICI bank drafted guidelines for not only how recovery has to be made, but as well laid down guidelines when, under what circumstances, what procedure has to be followed for recovery and whether it can be forceful one or not.
The Supreme Court once again assailed the practice of banks employing musclemen for recovery of loans from the public. It dismissed an appeal by ICICI Bank in one of the cases in which it had apparently used force for debt recovery.
The court thinks it is appropriate to remind the banks and other financial institutions that we live in a civilised country and are governed by the rule of law.
The court recalled that the Reserve Bank of India (RBI), in a letter accompanying its April 24, 2008, Guidelines on Engagement of Recovery Agents had stated that it might consider imposing a ban on banks engaging recovery agents in a particular area, either jurisdictional or functional, for a limited period.
Supervisory action could be attracted when the high courts or the Supreme Court pass strictures or impose penalties against any bank or its directors/officers/agents with regard to policy, practice and procedure related to the recovery process.
The court said RBI had expressed its concern about the number of complaints filed against banks in the recent past for engaging recovery agents who tended to violate the rules.
