• Can I sell a hypothetical vehicle to buyer

I have taken some money from one of local financier and he made a notary on 100 rupees stamp that I have sell the vehicle to him at the time of money given in 15 months back. The vehicle is hypothecated to bank , have given keys and RC to him. But the car is still hypothecated and I have been paying the EMIs. Now I have transferred the money to the account which is given by him. Now he is cheating me, demanding more money to return the car or I need to give NOC so that he can trnsfer to his name. I dont know his address and only in phone contact. And also he is saying that  he will file a case  against me that I I am not giving NOC. I asked him to return the money, but the account  I have transfrred the money is not belongs to him. DO I need to face any legal issue if filed case against me?

Please suggest me.
Asked 1 year ago in Criminal Law from Hyderabad, Andhra Pradesh
Religion: Hindu
1) does the agreement mention that on loan being repaid car would be returned to you 

2) it is necessary to peruse agreement signed by you to advice 

3) if you have repaid money with agreed rate of interest car should be returned to you 

4) in addition if car has been hypotheticated to bank you cannot sell the car without bank consent 

5) let the financier file case against you . in your defence you take the plea that you had repaid loan with interest 
Ajay Sethi
Advocate, Mumbai
23315 Answers
1220 Consultations
5.0 on 5.0
You are in trouble. The mistake you have committed is by returning the money to him but nt to his a/c.
If the money is returned to him to a/c of any of his near relatives life brother/wife etc, then it is ok.
Anyway lodge a complaint with local police asap about this blackmailing. You should first take legal action before he starts harassing you.
Devajyoti Barman
Advocate, Kolkata
5232 Answers
54 Consultations
4.9 on 5.0
1. You performed an illegal transaction by selling a hypothecated vehicle. 

2. The agreement between you and financier reduced to writing can be enforced by him against you if he can prove that on the date of agreement he was unaware of the fact that the vehicle in question was hypothecated. 
Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
5.0 on 5.0
Hi, when you hypotheticated the vehicle to the Bank then Bank is the absolute owner of the vehicle.

2, You have no right to sell the Vehicle unless you have clear the all the dues from the bank,

3. So don't pay the EMI then bank will take the possession of the Vehicle and Financier can't do anything.

 
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
1) it is necessary to peruse document signed by you to advice 

2) if you have repaid the loan you have nothing to fear 

3) if you stop paying bank EMI bank will take possession of the vehicle 

4) the document signed by you and duly notarised is binding upon you 

5) if you had his address you could have contacted a local lawyer and disused legal notice to the financier to return car as loan has been repaid 
Ajay Sethi
Advocate, Mumbai
23315 Answers
1220 Consultations
5.0 on 5.0
First thing you have to do is to contact the bank wherein the vehicle has been hypothecated, collect the details as also the details of the financier who is cheating you.  You should gather all the evidences of the repayment of loan, lodge a criminal complaint against the cheating financier in the police station, you should give the details of money transferred to somebody's account on his instructions, collect the details of the said account holder, implead him also as a party to the complaint, this is how you can find a solution to the problem or else he will keep dodging and you will be left clueless. 
T Kalaiselvan
Advocate, Vellore
14090 Answers
127 Consultations
5.0 on 5.0
He said that the car is a surety for his money at the beginning and forced me to sign on the notary. Now he is blackmailing and saying that he will file case as  I  sold the car to him and not giving the NOC. Can I approach bank officials? Can he file a case by depending on Notary that I have signed? Is it valid document? I don't know his address. Now he is not answering my phone calls.

You should allow him to file a case as per the papers in his hand, let us see on what grounds is he going to file the case.
You approach the bank and get the HP details and confirm the sale.
The notarised document is to be seen for making any comment on it.  If it is a loan agreement, then you can challenge it in the court about its legal validity.
even if you dont know his address, with his phone number, you can obtain his address through the service provider, you may lodge a criminal complaint with the police who will be able to trace his address on the basis of his telephone number.
T Kalaiselvan
Advocate, Vellore
14090 Answers
127 Consultations
5.0 on 5.0
without knowing his address you should not hand over the vehicle to him.

it is not possible to him also to give you the money without knowing you.

you have the copy of notary or not? if yes then in the notary paper there should be the address of him.

he may file a case against you before the court, apart from this if there is any dues of bank then bank can also be file a criminal case against your for selling the hypothicated vehicle without the NOC of bank.

Feel Free to Call
Nadeem Qureshi
Advocate, New Delhi
3537 Answers
130 Consultations
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