Vehicle agreement

Hasham (Querist) 28 April 2015 This query is : Resolved
Hi Team,

One of my friend has bought loan vehicle commercial (Yellow Board) from first party, thinking that he will be able to convert the vehicle immediately from Yellow Board to white Board, since it is a loan vehicle conversion could not happened. Then he sold his vehicle to another person, unfortunately that 3rd person did not pay EMI to the bank and banker has siezed the vehicle.

Now my fried while buying the vehicle had made one agreement with first owner was that he will pay the EMI, and he will have all the right on vehicle to do whatever he (My friend) can do.

My friend i worried based on the agreement legally does he held guilty. and to overcome this problem need your suggestion.

Regards
Suhail T

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Dr J C Vashista (Expert) 28 April 2015
If the vehicle is possessed by the Bank, they shall dispose it off, how can your friend get it transferred?
Consult a local lawyer with full facts, your information is incomplete.

P. Venu (Expert) 28 April 2015
Has these transfers been recorded in the RC Book?

Rajendra K Goyal (Expert) 28 April 2015
As the loan is outstanding,the vehicle must be in the name of the original purchaser.

Better pay the outstanding, get the vehicle back and get it transferred in your name. Send notice to third purchaser.

malipeddi jaggarao (Expert) 28 April 2015
When there is an outstanding loan, the first purchase to whom the loan is sanctioned is the real owner in the eyes of financier. All subsequent transfers which could never be registered with RTA, are only understandings and such understandings will not hold good either before the financier or in the eyes of law. Legally speaking, nothing can be done to your friend.