Auction of vehicle

Suchitra. S (Querist) 27 April 2012 This query is : Resolved
Respected experts, what is the procedure for auction of vehicle in case of default in payment of vehicle loan? Whether notice necessary? whether my presence is necessary during auction? Do I need to be informed about date of auction?

Follow Query

Report Abuse

adv. rajeev ( rajoo ) (Expert) 27 April 2012
yes it is necessary to issue notice of auction and date of auction.

Suchitra. S (Querist) 27 April 2012
Any case laws on that? What if auction notice is not given?

RAJU O.F., (Expert) 28 April 2012
If vehicle loan was defaulted only after giving notice to the borrower, the vehicle could be auctioned by bank/FI. In the notice, if it was mentioned that, unless loan is cleared within 15/30 days the vehicle would be auctioned, then seperate notice may not be required informing the date and particulars of auction.

prabhakar singh (Expert) 29 April 2012
The hypothecation agreement clauses might have been adequately drafted in this regard.
Check them before posing questions.

Previous

Next

You need to be the querist or approved LAWyersclub expert to take part in this query .

Click here to login now