My friend took an auto refinance loan from a prominent NBFC. He entered into a legal contract with the NBFC and hypothecated his property to them. the NBFC however did not issue a cheque to him directly but to their Agent (DSA). The DSA then deducted his fees and issued his own cheque to the borrower ( my friend)
Now the borrower has a contract with the lender (NBFC) but no payment has come to him from the NBFC. Whereas he has received an amount from the DSA but has no contract with the DSA !!!
What is the legal position on this? Can the NBFC recover dues from the borrower whom it has not paid from his account? the agreement between the borrower and lender does not mention any payment of third party (DSA). ?
Can the borrower approach the Court for making the NBFC adhere to the contract or at least quashing the contract since technically the NBFC has not abided by its part of the contract?