Non payment of loan for vehicle
Sanjeev Hota
(Querist) 17 May 2014
This query is : Resolved
Mr Shyamsundar is partner in a firm with Mr Harish. His partner Mr Harish, took a vehicle loan from Tata Capitals to purchase a SUV vehicle. Mr Harish who had purchased the vehicle has not been able to pay instalments overdue for one year now.
1. Can Tata Capitals recover the loan taken by Mr Harish from his partner Mr Shyamsunadar?
2. What action can Tata Capitals take to recover the loan from Mr Harish?
3. Can a case be booked against Mr Harsish by Tata Capital (if yes what kind and which sections)
4. Is Mr Shyamsunadar in anyway liable as regards the liability of Mr Harish with Tata Capitals
Lawyer SALEEMA KABEER
(Expert) 17 May 2014
If the loan is not obtained in the name of partnership firm, and if Mr.Shyamsundar has not stood as guarantor for the loan obtained by Mr.Harish, there is no chance to recover the loan from Mr.Shyamsundar since he is no way liable for the same.
Such a situation, the money lendor can institute civil suit only against Mr.Harish and the persons who stood as guarantors for the said loan transaction, if any.
Sanjeev Hota
(Querist) 18 May 2014
Thank you Mr Kabeer for your expert view. What happens if it is in the name of the partnership firm but Mr.Shyamsundar is not a guarantor?
Lawyer SALEEMA KABEER
(Expert) 18 May 2014
If the loan is obtained in the name of partnership firm, in other words, if the loan is obtained by the partnership firm, each and every partner of the firm is liable for the same either jointly or severally, in a normal course.
Lawyer Mrs.Saleema Kabeer.
Sanjeev Hota
(Querist) 18 May 2014
So is Mr.Shyamsundar also liable in that case for the loan? Forgot to mention that Mr.Shyamsundar is the silent partner here
Dr J C Vashista
(Expert) 18 May 2014
Incomplete information such as in whose name the loan for vehicle was taken, who is guarantor, how many instalments have been defaulted, is the loan connected with the partnership firm, whether the partnership is limited/registered or otherwise?
No proper opinion can be given in such a situation.
malipeddi jaggarao
(Expert) 18 May 2014
Agreed with Dr.Vashista. Give full facts at one time. If it is taken in the name of partnership firm, the firm is liable to repay the loan. Individual partners' liability is governed by their shares inter-se, but the finance company need not look into the inter-se liability of individual partners. Come with full facts, if you really seek some guidance.
Rajendra K Goyal
(Expert) 18 May 2014
Agree with the expert Dr J C Vashista ji, required facts need to be disclosed for fruitful advise.
Sanjeev Hota
(Querist) 18 May 2014
Dr J C Vashista ji/other experts, the loan is pending in the name of the Partnership firm which is a registered firm. Mr.Shyamsundar is the silent partner in this case.There are 10 out of 12 installments pending in the last one year due to freezing of bank accounts
malipeddi jaggarao
(Expert) 18 May 2014
Even if Mr.Shyamsundar is the silent partner or active partner, the firm's liability has to be shared as per the share in the partnership firm. I hope you got the reply.
Surrender K Singal
(Expert) 18 May 2014
Each partner is jointly as also severally liable for the entire loan repayment irrespective of his share or his activity; Financier can effect recovery from any of the PARTNERs who is considered capable to repay;
Sankaranarayanan
(Expert) 18 May 2014
If it is in the name of firm then the firm is liable for it
Surrender K Singal
(Expert) 18 May 2014
Firm is simply a association of individuals and each of such partners would be liable
Sanjeev Hota
(Querist) 18 May 2014
Thank you Sirs for your expert advice...the reason I am asking all this is because:
1 In case it is a civil suit what is the process the finance company follows?
2 Does it have a power to seize the vehicle
3 Does the company send a notice to Mr.Harish and Mr Shyamsundar when a suit is filed?
There are some people who have called Mr.Harish and threatening them. What action can be taken against them?
Surrender K Singal
(Expert) 18 May 2014
Such intimidation actions can be taken care of by reporting to the local Police; Any action like seizure can be after due process of law i.e. if decreed by any court
Sankaranarayanan
(Expert) 18 May 2014
You availed the loan then your duty and liability is to repay it . So try to pay the due with conscious mind. The company can only file civil suit to recovery of money.
prabhakar singh
(Expert) 18 May 2014
The liability of partners to discharge debts on partners is co-extensive,joint and several as well.
T. Kalaiselvan, Advocate 
(Expert) 18 May 2014
As properly advised by all experts, I agree with them, besides, as far as the seizure threats, you can lodge a complaint with the local police for suitable remedy because the financiers cannot law into their hand for recovery of loan amount by seizing the vehicle, it can be only after a court order.
Raj Kumar Makkad
(Expert) 21 May 2014
I do agree with the experts hence no more to add.
