If you had informed the 1st party about the selling then there is no problem. If you haven't and have sold the car then there is a problem. Talk to the 1st party.
What to do if FIR is lodged for a car which is under loan?
I bought a car which is under loan. However, we agreed and singed an afidafit where the 1st owner agreed to keep paying the EMI untill the final amount is cleared. Therefore, i paid him some amount and took the car. He has also authorised me to drive the car in an afidafit where i agreed to take the responsibility of any damage or illegal activities done while the caŕ is with me. After some months of transfer, the car which i am driving was hit by another party. So i gave up the car to that party and took the full price of the car. Now that i havent got the NOC since buying that car, the 3rd party said they will either need NOC or file FIR. So what should i do or what can be done regarding this matter? Will i be included if any legal action is taken between the first and third party?
Asked 3 years ago in Property Law
Religion: Christian
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12 Answers
Kindly clarify whether in RTO records car was transferred in your name
2) if the car has been sold by you it is necessary to peruse documents signed by you
3) if accident was caused by your fault FIR can be filed against you for rash and negligent driving
It appears from the facts stated by you that the car's RC has not been transferred to your name by the first owner, as the car stands hypothecated to the financier. In such a case, the buyer's demand for an NOC is quite reasonable for transfer of the RC in the buyer's name.
They will make you a party in that you need to give them the noc from earlier owner or approach court for the same
Dear Client,
As per the facts which have been provided, it's better to get NOC for that car to avoid any legal problem.
Thank You.
You have not purchased the property by a legal mode, I.e., by transferring it to your name.
However since you have already paid the purchase value to the original owner whereas sold it to another buyer that too after an accident, it will be your responsibility to oblige with the formalities of transferring the vehicle legally from the original owner to the subsequent buyer.
You may approach your vendor and arrange to fulfill the necessary requirements.
For the purpose of transfer of vehicle under finance, you first need NOC from financer than owner has to transfer the vehicle through RTA by signing Form Nos. 28, 29 and 30. Without such transfer through RTA, purchase of vehicle is not valid and ownership of vehicle cannot be changed. For civil liability such as compensation for accident the first owner of can is liable and for criminal liability for rash and negligent driving, the driver at the time of accident is liable.
I bought a car which is under loan. However, we agreed and singed an afidafit where the 1st owner agreed to keep paying the EMI untill the final amount is cleared. Therefore, i paid him some amount and bought the car. He has also authorised me to drive the car in an afidafit where i agreed to take any responsibility of any damage or illegal activities done while the car is with me. (NOC was not given to me since the full payment is not paid yet) After some months of transfer, the car which i am driving was hit by another party where the car got damaged. However, i know the person who hit my car so we decided not to file any police case and setteled the matter between us. So i told them i wont take the car since there were some major damage and asked them to pay the price of the car and take my accident car. (I didnt officially sell the accident car, i just gave it to them and took some money in exchange. So no written documents were made for this. Only verbal agreement) So they have done the payment and i bought another car. But now that i havent got the NOC of that accident car from the first party, the 3rd party said they will either need NOC (for RTO transfer and change of ownership), or file a FIR. So, will i be included if any legal action is taken for this case? Kindly share your opinion because this has been bodering me.
Asked 3 years ago
Second party is correct that he needs NOC for transfer of car in his name
he can file FIR for rash and negligent driving against you
you would be charged with rash and negligent driving
As the car was taken under a loan, the financier has a beneficial interest in it. Unless the loan is cleared and the hypothecation clause is removed from the registration records, the car cannot be registered in the new owner's name.
Dear Client,
As per the facts which have been provided, second party is correct that he needs NOC and the second party can take legal action in this case.
Thank You.
First of all you have not purchased the car though you have paid some money towards purchase therefore without full payment of the price for car, the original owner did not give NOC to you for transferring the car to your name.
Thus it can be considered that you were using the car belonging to somebody and have in turn sold it to a third person without consent and permission of the original owner.
If the original owner lodges a complaint for theft of car then you will be liable for the commission of the offence mentioned in the complaint.
Therefore you may obtain a NOC from the original owner in favor of the person who bought the car from you and arrange to transfer the car to him in order to absolve you from any liability in this regard.
Yes they may include you. It's better you immediately inform local police station and RTO about it.