1) termination letter has ti be issued to the wife of deceased as she is legal beneficiary
2) driver can file suit and claim amount paid by him from the legal beneficiary
Ownership of vehicle
A person as taken loan on vehicle and after paying some emis he passes away, after that the emi are paid by his driver from his bank a/c (drivers bank a/c, ) Now after clearence of the emi, the HP termination Letter has to be issued to The Driver Or to the wife of deceased , know the driver has filled a suit in consumer court for reciving the termination to him, whereas the wife being a legal benfeciary is insisting to get the termintion in her favour,
Asked 7 years ago in Civil Law
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9 Answers
Hello,
1) The bank will follow rules and was the hypothecation is in the name of the deceased his legal heir, in the current instance will be given the letter of termination of loan and the release of lien.
2) The bank will be liable to to explain though as to why it received the installments from the third party's account( the driver's).
3) Alternately, the driver should receive an NOC from the widow of the deceased allowing the driver to receive the letter and paying her any differences that her deceased husband had paid in installment while he was alive.
4) Alternately get a stay from the consumer forum against the bank from releasing the letter until disposal of the consumer case.
Well, the driver was a fool to say the least in clearing the debt of someone who is not his predecessor in interest.
Now he has repaid the loan, the wife of the borrower will reap all the benefits while the driver will lament for ever in his life for his follies.
1. Only the deceased borrower's legal heirs can claim HP termination letter even though the Driver might have cleared the loan.
2. A wife being a legal heir is well within her right to claim for the HP termination letter in her favour.
1. The driver had neither any liability to pay for the pending EMIs of the deceased owner nor is eligible to claim ownership of the vehicle.
2. The legal heir of the deceased owner of the vehicle will will inherit the title/ownership of the vehicle and will get the termination from the lending Bank in her favour.
3. If the driver can prove that the said vehicle was sold to him by the legal heir of the deceased owner on condition tat he shall have to pay off the outstanding loan account standing in the name of the deceased owner, then only he can get relief from the Consumer Forum.
Thanks for all your answers, Further as the driver has paid the emis, is the lending company liable to pay back the amt paid by the driver, and can we get any order passed in previous cases of the same suject matter for reference
Asked 7 years ago
Driver paid EMI for and on behalf of the borrower
2) you are not bound to repay the driver
3) driver can recover amount from legal heirs of borrower
1. The lending company will not consider as to who has paid the EMI.
2. The EMIs have been deposited in the account of the Borrower which they will account for.
3. The lending Bank will return the document/paper to the legal heir of the Borrower.
Without a valid transfer in his name the driver of the vehicle cannot claim ownership.
If he paid the EMI, then he can claim that money from the legal representatives of the deceased owner.
The wife and her children are the legal owners of the car hence after discharge of the loan the vehicle should be handed over to them.
Consumer court has no jurisdiction over this issue since the claim of the driver is is illegal ad invalid
Further as the driver has paid the emis, is the lending company liable to pay back the amt paid by the driver, and can we get any order passed in previous cases of the same suject matter for reference
The driver can claim the amount he paid towards the discharge of loan from the LRs of the deceased owner.
The company is not responsible to return the same
For references you can browse through internet.