you are liable to repay bank loan with interest
2) you should re pay the bank loan to avoid court decree against you
Car loan
My wife and I both are middle level govt. officials. On a stupid advice given by a junior clerk to my wife in her office, I bought a SWIFT DEZIRE on SBI loan for a period of 07 years in the year Jan., 2013. He showed her big dreams of owning a fleet of car and becoming a rich Tour Operator. Actually his plan was to add this car to his existing fleet of car to get push in his business. We could not see through this and went forward a bought the car. He kept the car and paid the EMIs for around 4 years and reaped huge profits in his business. He screwed up the car so much that that gradually the car became a condemned piece of iron. He eventfully stopped paying EMIs also. The dues on the car mounted upto 2.45 lacs and later our loan case became NPA. He made us believe that he would pay all the balance EMI in one lump-sum of relieve us of our loan and used the car to the maximum. One fine day he left the condemned car at our door step and showed his inability to pay the dues. Some friend of ours tried to help us by surrendering the vehicle in the bank. The SBI bank meanwhile had started issuing notices to us since last few months and later filed a case against me. We were totally unaware of the proceedings going on in the Court. However I happened to get an SMS from e-court app and on further extensive search I found that the address on the RC of the vehicle was wrong so no notice / summons could reach me. I out of panic contacted the SBI advocate who advised me to pay the entire balance amount immediately as according to him the CASE had reached an advance stage. He further informed that the vehicle which was surrendered by us could not be got auctioned by the bank and that in the next hearing the COURT would pass a decree to get the balance amount of loan recover through attachment. Kindly advice on the options left for me at this stage.
Asked 4 years ago in Property Law
Religion: Hindu
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
25 Answers
You could not avoid your liability to repay the balance loan amount. Ignorance of law or acting foolishly cannot be an excuse in law. In future be careful or consult some lawyer while dealing with any big value transactions.
Here you can not even file a cheating case against that man because he has paid your EMIs up-to a certain period. No legal action can be taken against him.
- Firstly you should know that, if a summons /notice of a court not duly served , then no action can be taken against the opposite party(defendant) .
- Since, till date , no notice is served upon you due to wrong address, then court cannot pass order against you as per law.
- Further, if the said loan was in your/wifes name , then in the event of service of the said notice, the court can pass ex-parte order , and further there may be order of recovery of the balance amount from your salary attatchment.
- Hence, better to appear before the court after receiving the said summons , and submit your reply after narrating all the true facts , and further prayed for a settlement of the amount.
- Court has power to give a better relief .
Appear in court and take adjournment, File FIR agasint junior clerk. If car cannot be auctioned, demand it delivery back.
Talk the bank for one time settlement, which may less than principal amount. .
See since you are government employees bank shall anyway recover the amount so at this stage it is better to settle with bank , pay due loan amount and further you can give notice and file suit to recover amount as per your agreement from said person.
Hello,
I understand the situation that you are in right now. I would request you to share the details of the case so that I may see the stage of the case and then I will be able to advise you in a better manner.
Regards
Apper through your advocate , and ask the court to file the ws, in the meantime contct with the manager and ask him to reconstruct the loan amount and start paying EMIs.
r
Dear Concern,
Please note -
01. The advise given from the side of the concern advocate of the SBI is correct. To save yourself from any sort of disrepute and malign you should pay the remaining EMI and get this case resolved from the side of yourself and the Bank.
I am suggesting you so because anyway you will have to contest the case by hiring the advocate and paying his fees besides incurring court expenses and stationary expense etc. over the case and since the loan was on your name so no matter what at the end of the day you will have to pay that sum. So there is no point wasting time and money over the case. Pay the sum and get rid of this case.
02. Once you are done with that, file a criminal case under section 406, 415, 420, 506 and 34 of the IPC in against the concern who has used your car for his benefit and have neither paid the EMI nor gave you any profit share. Drag him before the court and recover the sum which you have paid it to the Bank plus the sum for your mental harassment which you have gone through and other damages.
State it before the court as to how you were duped by him on the false pretext of making money out of this business and so and so forth, state as to how wrong address mentioned in the RC has led you to this position, state as to how he has breached on his promise by neither paying the EMI nor sharing the profit made out the car. The Bank statement which state that he was paying the EMI will come to rescue you out from the situation besides other evidence will also help you in contesting this case.
Hire a good advocate for yourself and he will assist you further in this case.
My best wishes to you.
Need to study the case entirely. I don't think it's easy to recover the said loan through civil case. You can contest the case and win the same. You can also file criminal case of cheating against that person. If you feel bank have done some foul play you can file consumer complaint against them too
The option left with you is to appear in court and make application to set aside the Ex-parte hearing orders against you.
And begin hearing again as you want to appoint your advocate in the case. Then you should again go for compromise with bank
1. It is in your interest to repay the outstanding loan with interest.
2. If bank has filed the case and it is decreed then in execution the decree can be executed against your immovable properties.
3. Immediately engage your own lawyer to inspect the complete judicial file of the case to get a clear picture.
1. IF the car was registered as a Private Car (Black letters on White Background), THEN the said Car could NOT have been used for Tour Taxis /Cabs, for any commercial earnings etc.... which is in itself a Criminal offence.
2. Since Car is registered in your name, you do not have any option, but to settle amicably with the Bank and get out of the legal hurdles, which would affect your Govt. service as well. AFTER this you can take back your car for personal use /resale.
3. You can file a Police FIR, requesting investigation and charge-sheet, for offences like cheating, intimidation, fraud, breach of trust etc.... against the said Clerk, supported with all relevant supporting documents.
4. IF the Police does not take action, THEN you can file private criminal case u/s 156(3) Cr.P.C., in the local Magistrates court, seeking directions to the Police to investigate and file charge sheet. The said Clerk Person may come down for settlement.
Dear sir,
I have read your query and accordingly, my advice for you is that let us contest the case in the court and buy you some time first. Apart from that we can get the case out of the court and get the settlement done. Your negotiations and the negotiations by a lawyer has a ground difference. So, even if the sarfesi proceedings have been initiated against you, that can be controlled. It would be great if I have the insight of your case and then advice you and get the favorable settlement for us.
You can contact me for consultation.
Regards,
YUGANSHU SHARMA
ADVOCATE
If you default on your car loan, the bank will repossess your car and put it up for auction to compensate for the outstanding dues.
- The best way is the settlement in your matter out of court which is easily possible.
- In the meanwhile have your appearance given at the respective court from which you have received the summons.
- Besides, file the case against the clerk U/s 420 and cross verify if any other incident have not recorded on the car which might become big trouble later
Regards
Vivek Arya
You immediately contact an advocate from your side and participate in the recovery proceedings going on in the court.
Somehow get the case dragged on for few more months and then file a memo to refer the matter to lok adalat for mediation and settlement by waiving the interest portion.
Somehow you may have to manage the situation, take the assistance of an experienced lawyer in the local, do not approach the bank lawyer who will misguide you.
Dear Sir(s) thanks for all the answers. I understand that i have to pay back the dues of the bank. However, at this stage can i get the matter referred to Lok Adalat for mediation and settlement by waiving the interest portion. kindly advice
Asked 4 years ago
You don't initiate anything from your side let them do it. You just counter if you get any court notice
On the date of hearing, request court to refer matter for LOK adalat.
you can request case be referred to lok adalat
however please not e consent of both parties is necessary for reference of case to lok adalat
You first have to enter appearance before the court where the case is pending and being tried.
After participating in the case trial, you can file an application to refer the matter to lok adalat and at that place you can request for wavier of loan interest.
See you can pray for referring the matter to Lokadalat and can talk to bank for settlement if they are ready then only the matter can be settled.
I do not think so that this will be possible. The bank will not waive off the interest
Yes once the case is restored by your application you can further make application for put up the case in next lokadalat for settlement of dispute.
you can approach the Lok Adalat for resolution of the dispute.
- Yes. you can approach Lok Adalat or Mediation cell for a early removal of your headache.
- Put your case , before the lok adalat with all the details, that you have faced and asked for a sympathetic consdieration to the mediator,
- Sure, you will get waving of interest portion.
- Dont take it very serious , and you can also adopt the way as i mentioned above.
Good luck