Non-payment of installments of a bank loan
sasankajyoti sharma
(Querist) 09 March 2012
This query is : Resolved
First of all happy holi and International Woman's Day to all.
My query - A man purchased a Maruti Car from a dealer on Bank Finance and the Bank gave the loan to him after fulfillment of the requisite norms for the Loan. But during the course of time the man was unable to repay his loan installments and his car was pulled and taken back by the Bank authorities and the Bank authorities later have sold the car through an auction. The auction of the car was not even informed to the man.
The auction value of the car was not sufficient to complete the installment due against the car and to mitigate the loss and recovery of the balance money the Bank authorities have opted for an Arbitration Proceeding against the man. The man did not appear before the Arbitration Proceedings and the said Proceeding has passed an Order Expertee for payment of the balance amount of money remaining un-recovered by the Bnak after the aforesaid auction sale of the said car. The man is regularly asked to pay the money as passed by the aforesaid order and he is threatened of dire consequences if he fails to pay the same.
Considering the present income conditions the man is unable to repay the money aforesaid.
Now, what is the option left to the man? Can there any suit be instituted against the man by the Bank authorities?
R.K Nanda
(Expert) 09 March 2012
Go to bank and request for paying the due amount in EMI as ur not able to pay in one go.bank will not file any case as it has an
award in its favour.
ajay sethi
(Expert) 09 March 2012
if you have taken loan for car and failed to make payment bank was justified in retaking posession . after auction of carfor balance amount decree was obtained .
if you are unable to pay bank will take execution proceedings and attach your property . is the flat wherein you staying in your name? any bank accounts?
if you have no bank accounts, no property make application for declaring yourself as insolvent
RAJU O.F.,
(Expert) 10 March 2012
Bank can file suit against the defaulter for recovery of balance dues after sale of vehicle. You may reach an amicable OTS settlement with the bank to avoid further proceedings.
r sugumaran
(Expert) 11 March 2012
Bank need not have to file a suit as the award passed by the Arbitrator can be executed as a civil court decree under the Arbitration and Conciliation Act, 1996
sasankajyoti sharma
(Querist) 11 March 2012
Thanx. It is actually not my problem. It is a problem of one of my clients. Thank you all for your valuable advice and suggestions.
JT Rajasuriya, Chennai
(Expert) 15 March 2012
I think informing the debtor of the auction is a prerequisite before the auction. Kindly get it confirmed
