Dr Team, My bike was siezed by finacial institution for not paying my 2 months emi without any prior written notice nor a mobile communication . I had availed auto loan for 27 month tenure out of which i have completed 24 months and because of unemployment i could not pay 25 and 26th emi i was just about paythem back by then my bike was taken while it was parked in my house without even notifying me . I visted the financer next day and asked for notice copy but i was not shown any court notice copy nor it was sent to my home adrress and i was aked to pay an amount of 15500rs 2months emi plus intrest plus 10months of ecs return charges, 4000rs for seizing charge. They asked me to come on monday since it was saturday. Please let me know What are my rights ? Do i have any advantage over the situation. Is what finacial instituion did right? Financial institution : hindhuja leyland finace Emi amount : 2302 Tenure completed : 25 out of 27
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
1. Check whether there was any arbitration agreement in your loan agreement.
2. If yes then they can obtain order from court to attach the bike.
3, If they have not done so you can file case of theft against the person who had taken the bike in your custody.
4. Since you almost repaid the loan amount do file case in consumer forum seeking return of bike, damages and compensation.
1) you msut have entered into agreement for obatining loan from the finance company
2) kindly check the default clause in your contract
3) if you have not made payment on time there must be clause that finance company can seize the bike
4) however generally there is a cluse that notice has to be issued to defaulter then only bike can be seized
5) kindly reproduce the relevamt clauses in your contract to advise further
The way the finance company seized your vehicle is illegal and it shall be treated as an offence under robbery.
Instead of approaching the finance company you should have approached local police station with a complaint about missing bike and could have blamed the finance company for breaking open your home and taking it away illegally while you were not at home.
This complaint would have been more effective than the personal approaches with the company.
Now you have no option than to negotiate with the company or to lodge a police complaint.
1. If the borrower fails to pay the interest for 90 days the financial institution will treat that loan as NPA.and then repossess the vehicle in default of 3 EMI, but this cannot be done without issue of a notice to the borrower. The finance companies must inform the hirers regarding the details of installments due and payable through a written notice. Even before repossession another written notice must be sent to the hirers and only thereafter the vehicles can be repossessed. Finance companies are restrained from stopping the running vehicles on the roads and forcible pulling out the driver and take possession of the vehicle against all provisions of law.
2.Since the finance company has acted in violation of law you should sue it in consumer forum to claim compensation.
