Vehicle loan
Kvijay12345
(Querist) 30 April 2015
This query is : Open
my friend had taken a vehicle loan and dispite of his several requests for the copies of the loan relevent docs, the nbfc for three years failed to furnish any copies of these loan related docs including the sanction letter and the loan agreement which were signed blank by my friend at the time of the processing of the loan. Meanwhile he continued to pay the EMI on loan and finally when he realised that the nbfc is not willing to give him copies of those loan docs,he stopped the EMI on loan after the intimation to the nbfc.Then after three years my friend got loan docs in which he observed many discrepencies which he immediately brought into the notice of nbfc. There was a dispute over these loan documents including the loan agreement. Instead of solving the dispute, the NBFC got the arbitration award passed in its favor without the knowledge to the consumer and towed away his vehicle forcibly without giving any intimation to him or local police station and also without giving the copy of this arbitration award to the consumer. The consumer therefore moved to the District Consumer Forum seeking for the compensation.Now the NBFC have filed their say stating they have possesed the vehicle with the help of that arbitration award.I have heard that such disputed loan documents can not be utilised for arbitration proceedings before solving the dispute and an award based on these disputed papers is invalid.Can the disputed loan documents including the loan agreement be utilised for arbitration proceedings and the arbitration award be passed based on those disputed loan documents? Is such an arbitration award passed based on the disputed loan documents is valid and can the vehicle financed be towed away with the help of such an arbitration award by the NBFC without going through Execution proceeding in the civil court to repossess the vehicle? under which section of the The Arbitration and Conciliation Act, 1996,the award passed on the disputed papers is invalid?
