File set aside application, Poor defense by borrower lawyer. and interest is max, 9% per year on 4 lacs.
Recovery tactics by bank people
Sir ji Cooperative Bank financed for car loan in 2014 but after two years Borrower was in default Therefore Bank recovery people started visits to Borrower’s Home with threats and bad languages but Borrower is white collered sober business person and hence Borrower handed over his Car to Recovery people and he himself left the car in godown of Bank Actually Bank Recovery people searched Buyer and on 03-8-2017 took one letter from Borrower as under :- "I the undersigned Borrower hereby willingly sell the aforesaid vehicle to MR XYZ and hence request you to kindly allow me to sell the car in Fifteen Lacs to proposed buyer. Further sale –proceeds be credited to my vehicle loan account No. so and so". In response to the above Bank issued one letter on same day 03-8-2017 stating therein as under :- "We (bank name) have no objection to sale of Vehicle No. so and so to Mr XYZ subject to direct payment of Rs. Fifteen Lacs in favour of Bank (bank name)" The Borrower is illiterate but asked for NO Dues Certificate from bank Recovery people but they told to Borrower that as the car is sold, the loan account will be closed and nobody will come to his residence And in support of their verbal assurances they explained to Borrower that because the loan account is closed, they are not mentioning in Bank’s letter that even after sale of Car there will be outstanding loan amount And actually the loan account was closed and for 19 Months there was no visit and/or phone call from recovery people and there was no demand letter from Bank Borrower was free from tensions Suddenly after 19 Months Bank sent letter to the Borrower asking to pay eight lacs by saying that 4 lacs principal balance and 4 lacs interest added thereon And immediately after 30 days they filed claim before Arbitrator who appears to pass Order in favour of Bank by saying that it is public Money Please guide along with exact rules and some citations in the matter if possible Regards HARIOM
Asked 6 years ago in Property Law
Religion: Hindu
10 Answers
You should contest bank claim to pay Rs 8 lakhs
2) take the plea that car was sold for repayment of bank loan
3) rely upon correspondence exchanged with bank recovery agents and bank
4) you have not mentioned what was sale proceeds of car and whether Rs 15 lakhs was received by bank or not
You can reply to bank with reference of there letter of the no objection certificate issued to sell the car for 15 lacs rupees and cheque in favor of bank. So kindly check this transaction and till that date what was outstanding and possession of car was with bank.
Here the bank should have auction the car instead of giving noc to sale now the burden of proof lays on borrower shoulder.
You need to check what is arbitrator order and challenge the same in appeal. Later you can take steps whether to pay or contests the case
The August 2017 letters, one taken from borrower and another issued by bank, coupled with the fact that for almost 1 and half years the bank did not do anything, will go against the bank
Firstly both the letters prove that the car is sold and money is paid to the bank and pursuant thereto the loan account is closed even if there is no No Dues certificate of the bank. The fact of sale of car and credit of money to the bank towards repayment of loan is actually proved simply because of the bank's inaction for almost 1 and half years
No prudent bank would wait for such a long period and do nothing when it is being projected by the bank's arbitrator himself that public money is involved
Thus the case revolves around facts and no citation or sections are required to be quoted
Also for mere petty 500 a client ought not expect any judgments from the lawyers which take substantial time to research and find
Your case is good on merits. So dont bother about the citations or section
The acts are unreasonable and manifestly fraudulent
Challenge the arbitrator's order by filing a Writ Petition. Fit case for admission and cognizance by High Court.
Dear
The borrower should file complaint against bank before banking ombudsman and
Borrower should file appeal before High court against decision of arbitrator.
1. Rule is that you one shall have to repay the loan he has taken from the Bank with agreed rate of interest.
2. In the instant case, the Borrower should have directly discussed with the Bank and not the recovery agent and found out how much is the outstanding amount to ascertain how much are still left after paying back Rs.15 lakhs being the sale proceed of the said car.
3. Has the Borrower presented his case before the Arbitrator through his Advocate? If yes, the the Arbitrator has already passed his Order.
4. The Borrower shall have to either comply with the Order passed by the Arbitrator or challenge it before the High Court if he feels that it was a wrong order.
After closing a loan it is important to obtain a No Dues Certificate (NDC) from the bank, banks issue a No Due Certificate (NDC) or Closure
Borrower should file a complaint to the banking ombudsman against bank.
borrower should contest claim on merits.
- Firstly he should lodge his complaint against the bank with RBI & banking ombudsman.
- After getting the said order from the Arbitrator , the bank will file its execution petition before the court , for the actual recovery of the decreed amount.
- After getting summon from the Court, borrower should file his Objection in details.
- Further, the borrower should also approach the High court , for an stay, and to challenge the said one sided order of the Arbitrator.
What did the borrower possess as documentary evidence for closing the loan.
If he's having sufficient evidence to prove that the loan was closed then he can prefer an appeal against the orders passed by arbitrator before appellate court.
