gopidayakar (Private service) 11 April 2016

Advise required

Sir,

I have availed a 4 wheeler loan from Sriram Finance Transport Corporation vide their hire purchase agreement nos. KOMPLO 211220012 dated 22/11/2012 for Rs.1,45,000/- & KOMPLO 212210007 dated 21/12/2012 for Rs.14,370/- (Additional Loan amount for Insurance Coverage for the vehicle) and also KOMPLO 307170007 dated 18/07/2013 for Rs.56,000/- (Additional Loan amount for clear of old dues).

I have taken a total finance of Rs.2,15,370/- against all the above 3 accounts. Out of which I have repaid a sum of Rs.1,21,010/-. My last paid date is 24/07/2014. Due to some financial problems I could not repay the installments regularly after that. For that reason the company has seized the vehicle by taking away the keys from the driver and leaving the vehicle near my premises more than 2 years. They have not even issued the vehicle seizure notice to me. I have made a repeated requests to the company to take away the vehicle from my premises and if the vehicle got damaged I am not responsible for the same.

After my repeated requests the company has taken the vehicle and sold to some third party for Rs.80,000/-. After including this amount I had paid to the company a total amount of Rs.2,01,010/- and my liability lies only Rs.14,360/- only . Now, the company has sent me arbitration notice and asking me to pay Rs.2,39,000/-. I could not understand why I should pay this huge amount.

I request you kindly suggest whether I should proceed legally against the company. If so, then how to move forward in this regard.

I appreciate if you can give me your valuable advise.

Thanks & Regards,

Gopi

9701362362

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1 Replies

Rakesh Jain (Director) 15 April 2016

there must be an arbitration clause in the agreement,(1)is it the same body of arbitration written in the agreement, if not then a court can only appoint the arbitrator,(2) if point no.1 is proper, then they must have filed a statement of accounts with the arbitrator, so reply to get that copy, and prepare your case, as to what is correct and what is not correct, can be explained, because, if you don~t reply, the arbitrator can pass an ex-parte judgment, no need to pay any amount just now to anybody, if afterwards if you find that arbitrator have not examined the facts in the light of justice, then you can challange the award. in court of law

since the arbitrator is pre-appointed by the company and a profesional, try to find the credibility of the arbitrator, and if you find something not correct with the arbotrator, based on solid evidences, you can also challange in court.

In the end if something in your name i.e. property or something like, they can get attachment for auction, but if you don~t have any such thing than, no body can take your right to live. and they cannot attach, your wife or son`s assts. Don~t panick and keep your calm and face the situation bravely