Arbitration matter

Ranbir Khaitan (Querist) 08 September 2023 This query is : Resolved
Dear sir ,
I had purchased one vehicle on loan from bank and three months after purchase the vehicle faced an accident following which i could not pay my emi to thebank the insurance company denied the claim than i filed one case against the insurance company making bank also the party in the said matter the bank and the insurance company both contested the case in the mean while the bank initiated the arbitration proceeding while the matter was pending in consumer forum the consumer
forum ordered for physical verification of the vehicle to order insurance company to repair the vehicle but the bank repossess the vehicle and sold it at a meagre price
After selling the vehicle the bank has further given me a notice to pay remaining amount of 5 lakh to the bank when the value of the vehicle was 7 lakh now what should i do please help

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Quick Summary

A customer purchased a vehicle on loan, which was later involved in an accident. The insurance claim was denied, and the bank initiated arbitration proceedings while the case was pending. Despite a consumer forum order for vehicle repair, the bank repossessed and sold the vehicle for less than its value, now demanding the remaining loan amount. Advice suggests negotiating a settlement with the bank, especially if repossession followed legal due process.

T. Kalaiselvan, Advocate (Expert) 09 September 2023
If the bank has take possession after winning the case then you don't have any claim at all.
You may have to talk to bank about settlement of balance amount by negotiation

N.K.Assumi (Expert) 09 September 2023
I agree with the opinion of T. Kalaiselvan, Advocate.

P. Venu (Expert) 02 October 2023
Has the arbitration proceedings been completed? Was the possession of the vehicle taken through the due process of law?

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