Can a car dealer deny to refund the money because the bank does not cancel the car booking made
prasanna kumar
(Querist) 02 September 2013
This query is : Resolved
I booked a car in my wife's name.Based on the proforma Invoice given to me by the dealer on April 30 2013 I applied for the loan from my banker, the loan was sanctioned during the first week of may.Due to some reasons I did not buy the car then. That time the car price was 547410/= on road. In july I booked the car with an initial payment of Rs. 10000/= and on 31st july I paid full payment of 547410 as per the proforma invoice without deduction the advance paid as my bankers insisted that I should pay the entire on road value through them including my margin money and said that I can collect back my booking amount from the dealer. The loan was sanctioned by the bank and disbursed to my wife's SB account. From the SB A/c. I paid a DD in favour of the car dealer by paying DD charges. Now I had paid a total of Rs. 557410/=. After taking the payment, the dealer informed me that the Huyndai is giving a special discount for that month and the discount amounts to about 40000/= thus there was an excess amount of rs 57000/= approx. paid to them. The dealer first said that the money will be refunded the next day. However, even after 3 days, the money was not returned. On questioning them, they started forcing me to take accessories for the excess amount. I refused to buy and insisted on refund of the money. Then even though my banker was not connected with them, they approached my banker and started telling them that I have refused to buy the accessories from the money the bank has sanctioned and I am asking for the refund of money and am trying to siphon the money off.( actually bank has not sanctioned any money for the accessories. Annoyed by the act of the dealer to contact my banker and trying to damage my image, I cancelled the booking of the car from them and asked for the refund of the entire money. I refused to refund the money and said the money can be refunded only on getting the loan cancellation letter from the bank. I sent a legal notice to them. Now by this time, they had been contacting the bank and were advocating the bank to cancel my loan account and have asked the bank manager to issue letter of loan cancellation for refund of money. However, to my legal notice they have replied to my advocate,as if I have asked them to commit fraud upon the bank by giving the money back to me.They have again stated that my cancellation of the car booking is not valid and that the cancellation has to come from the bank and then only the money will be refunded. I fail to understand as to why the bank should cancel the booking of the car and cancel my loan account, when I have booked the car as if I don't have any identity of my own. I have informed the bank all about this to the bank in writing. It has been one month since the letter for cancellation is made. I still have not received the money back.Actually, the intention of the car dealer is to see that the loan I obtained should be cancelled and I should not get the loan from my banker.
There is not tripartite agreement between the bank, myself and the car dealer. Nor the bank had directly released the loan in the name of the car dealer. It is disbursed to my account and from their I have taken DD and paid to the dealer.It is also not the case where the bank has asked the dealer to obtain its permission before cancelling the booking of the car. The car dealer in his reply has himself declared me as defrauder.
Now my question is, whether the car dealer has any right to reject my cancellation of the booking and deny the refund. Are there any rules that the bank has to cancel the booking of the car which they have not done on my behalf.Are there any rules that the car dealer can insist on cancellation of my loan account. He by doing to has damaged my reputation with the bank. Does it not amount to deficiency of service.Is there any way I can quickly get my money back immediately. Can I file a cheating case against him with police. Can I a file a complaint against him in consumer forum for deficiency of service. If so can consumer forum pass a interim order asking him to repay my money paid to him immediately.
Please somebody guide me.
Thanks in advance.
Prasanna kumar
Rajendra K Goyal
(Expert) 03 September 2013
whether the car dealer has any right to reject my cancellation of the booking and deny the refund.
Ans: Car dealer should cancel the booking subject to the provisions of the booking conditions. Conditions are to be seen from the booking slip/letter. It can retain / forfeit booking amount if allowed under booking conditions.
Are there any rules that the bank has to cancel the booking of the car which they have not done on my behalf.
Ans: Banks neither book the car nor cancels it. it is the duty of the customer.
Are there any rules that the car dealer can insist on cancellation of my loan account.
Ans: Since the hyphenation letter may have been received from the Bank, the dealer is in knowledge of the Bank loan, right to insist the closer of the Bank loan. It should directly remit the amount to Bank loan account. Failing it may become a party in criminal act if the loan amount is misused by the borrower.
He by doing to has damaged my reputation with the bank
Ans: He is trying to get the loan closed as the booking has been cancelled by you, how your reputation is effected?
Does it not amount to deficiency of service.Is there any way I can quickly get my money back immediately.
Ans: You have cancelled the booking on what aspects it amount to deficiency of service.Ask the dealer to issue cheque for full amount in the name of your Banker, Bank will return the balance after closing the account.
Can I file a cheating case against him with police.
Ans: Cheating on what grounds.
Ask the dealer to remit full amount to your Banker.
Sudhir Kumar, Advocate
(Expert) 03 September 2013
Why the bank did not issue DD in the name of company and why put the money in the S/B account. Prima-facie they are punishable. Your case was simply for refund of excess paid amount for which you could have even complaint to the company. You cancelled the booking. Dealer might be knowing of hypethication and bound to refund money to bank. The money which does not belong to you.
Somehow it gives a hint that you do not want to buy the car now and at the same time do not want loan to be refunded because bank has done an error of remitting money to S/B account either on good faith or in connivance.
The dealer has alleged attempt of fraud and the charge is maintainable on you wife and not you.
RAJU O.F.,
(Expert) 04 September 2013
Go through the documents you had signed while booking the car and find out any clause pertaining to cancellation of booking. Normally, the bank had to collect the margin money and had to pay the loan proceeds along with margin money, directly to the supplier. Bank should not have credited the loan proceeds to your a/c so that you can use it for some other purpose. Bank had to confirm the utilisation of the loan proceeds.
Any how, if you have grievance against the dealer and the banker, you may prefer consumer complaint in jurisdiction forum.
ajay sethi
(Expert) 04 September 2013
agree with experts
Raj Kumar Makkad
(Expert) 04 September 2013
No more to add as experts have rightly advised.
prasanna kumar
(Querist) 05 September 2013
All experts, thanks for your opinion.
But some of you seem to be in concurrence that the dealer is right.
Now I must tell you that even though the loan was disbursed to my wife's account the DD to the dealer is given including the margin money. Besides, there was also the extra money paid from her personal account for booking. The receipt for the above money obtained from the dealer was submitted to the bank immediately on the same day. As for as the refund of the amount is concerned, before branding me as the defrauder, why have you people ignored the fact that I was forced to buy the accessories for the extra money. Would it not have amounted to defrauding the bank if I had purchased accessories for which there was no sanction given. If a dealer tries to defraud the bank by forcing the accessories,does it becomes legitimate act.
secondly, nobody prevented him from giving the money directly to the bank as the manager and myself have given the bank account number where the loan was sanctioned.
Apart from this, When I have booked the car, only I have the right to cancel the car booking from the dealer. My banker does not have the right to cancel the booking on my behalf as they have not booked the car on my behalf. Is it not correct?
If the dealer was very prompt, on the first part he should not have unnecessarily gone to the bank with malicious intention of trying to defame me and canvassing before the bank to cancel my loan account. Instead, he should have shown his promptness in refunding my excess money immediately at least directly to my bank account which he he knew very well. similarly, when I cancelled the booking, instead of dragging the matter for more than a month he should have refunded the money directly to the bank. If his intention was good, he would have done that .
If I had the intention of defrauding the bank and not buying the car, after the bank disbursed the amount to the account, I need not have given the DD to the Dealer to buy the car. So I request you people to look to the matter in the right perspective and please do not think the persons who take the loan from the bank are fraudsters and asking the refund of excess money/full money after cancellation, amounts to defrauding the bank. We are paying the installment to the bank with interest without car and without getting back the money. Is it justifiable by the dealer who is enjoying my money for free giving lame excuses to refund?
There was not order booking form signed by my wife. The DD was given directly.
If the car dealer insults my wife I consider it is an insult to me and I am duty bound to defend her when she is not at fault.
prasanna
Rajendra K Goyal
(Expert) 05 September 2013
When you have requested to cancel the booking of car, the dealer should have acceded to your request and should have refund whole money to your Banker immediately subject to the provisions of booking. If he has not done so you have all rights to proceed legally.
2. You should request to send whole amount by cancellation to your Banker.
3. You are correct that car booked by you can be cancelled by you. For the satisfaction of the dealer, you can inform to your Banker about the state of affairs and your decision of cancellation of Booking, in writing and attach copy of your letter duly received by the Banker for information to your dealer. This step may be taken to solve the dispute without litigation.
4. Once you get back your money, you can proceed for refund of interest and damages etc.
5. Car dealer has no right to insult any body. Lodge a complaint to manufacturer about whole affair.
6. With the consent of your Banker, you can use this loan amount to purchase car from some other brand.
Rajendra K Goyal
(Expert) 05 September 2013
When you have requested to cancel the booking of car, the dealer should have acceded to your request and should have refund whole money to your Banker immediately subject to the provisions of booking. If he has not done so you have all rights to proceed legally.
2. You should request to send whole amount by cancellation to your Banker.
3. You are correct that car booked by you can be cancelled by you. For the satisfaction of the dealer, you can inform to your Banker about the state of affairs and your decision of cancellation of Booking, in writing and attach copy of your letter duly received by the Banker for information to your dealer. This step may be taken to solve the dispute without litigation.
4. Once you get back your money, you can proceed for refund of interest and damages etc.
5. Car dealer has no right to insult any body. Lodge a complaint to manufacturer about whole affair.
6. With the consent of your Banker, you can use this loan amount to purchase car from some other brand.
Guest
(Expert) 05 September 2013
In my views you had adopted some wrong approach to the problem. In the long description of your problem, the most essential information is wanting, i.e., the dates of deposit of DD for full cost, due date of delivery of the car, whether the car had already been pledged to the bank, the date of cancellation request, the reason advanced for cancellation only by the bank, etc., etc.
In fact your case having been made complicated, you need to consult some local lawyer and get your case examined with reference to the case related documents, as you do not seem to have been able to provide sufficient data to help us form a definite opinion about whether it is already a fit case or how that can be made a fit case for the consumer forum and whether against only the dealer or the bank also.
Sudhir Kumar, Advocate
(Expert) 05 September 2013
repeated http://www.lawyersclubindia.com/forum/Car-dealers-right-to-insist-on-cancellation-of-my-loan-which-87849.asp#.UiiZvX_Qzmk
Sudhir Kumar, Advocate
(Expert) 05 September 2013
while agreeing with Mr Dhingra I would add that the queriet is revealing the facts leading to a conclusion that he want the money from dealer and keep on paying EMI to the bank and retain the money
