15 September 2021
It depends on powers of the Directors or those officials that are dealing with the case. In a case for recovery, if the loan is in default, and some other person steps in to take that auto in his name, there is nothing wrong in recovering such an overdue amount from the new borrower, and transfer the loan. The loan exists in the books of the company, but not in the name of the old borrower and it may be in the name of the new borrower. Unless such rights are with the company as per the agreement between the old borrower and the financier, such rights can not be exercised. This is beneficial to the company, as there is no need to incur extra expenditure for confiscating the vehicle, auctioning and other procedure involved in Auction.