cpc

finance company harassement


My elder brother had  three  Trailer loories, financed by  repluted finance company in the year 2000.  Since my brother defaulted in payments, they have seized the vehicle in the year 2002 end or begining of 2003.  They sold the vehicle at a lesser price to another person whom  I know and without knowing, he told that he got it at a cheaper rate with the understanding  of the company.  The problem is that they didn't tell us that we  owe them and suddenly now demanding to repay the balance with interest till date.  I am the surety for this.  am i liable to pay or will they take action?

 
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 you or your brother need not pay. Take advice from a learned lawyer of your locality.

 
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LAWYER HUBLI,KARNATAKA

In the year 2000 your have been sanctioned loan, FIND OUT WHAT WAS THE VALUATION MADE  FOR THE VEHICLE  IN 2000, DEDUCT THE 2 YEARS DEPRICIATION FOR WEAR AND TEAR, i THING YOU HAVE ALSO INVESTED 1/4 OF AMOUNT FOR PURCHASE OF THE TRAILER, I also think that the company would have obtained blank cheques at the time of sanction of loan.

Satya prakash is right, But once the case is filed, you have to disprove the contents of the complaint, It will cause you pain and sufferring and harrassment,but you have to face the challanges,and overcome to rebutt the evidence,of the complainant. Then only you can come out clean,or you will be put to trouble.

 
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In this case cheque case is not involved or filed by finance company. Face the case before Arbitratory tribunal or lok adalath .... settle the amount which is your favour ..... strongly object .. and don't pay the interest any value.  

 
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In this case, though  what Mr.R K S opined  is absolutely right,  our vehicle would have fetched more than what the normal method applies, because, before the vehicle seized up, my brother put 10 new tyres for the vehicle,  engine got it repaired for Rs.1,00,000/-   It would have fetched more than the loan quantum  but because of the tacit understanding between the manager and the purchaser, the vehicle was undervalued by Rs.1.25 lakhs to Rs.1.70 lakhs (per vehicle).  No Blank cheques was issued.  Till now, there is no Advocate notice, or Court notice, it is only over phone, they have  demanding the amount to be paid with interest.  With this, kind advice further.

 
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Retired

 Under the terms of the lease finance, company has the right to seize the vehicle and sell it to recover the cost. Whether it was sold for lesser price and you had spent money on repairs, new tyres etc. is meaningless. Underhand dealing, tacit understanding, kickback paid to manager are all in the realm of conjecture in the eyes of law.

In such cases, the company generally settles the matter knowing full well that the court case will drag on and it may not get anything. Else, be prepared for court case if company is adamant.

 
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LAWYER HUBLI,KARNATAKA

Since the Arbitratration clause would be mechanically be put into force,Where  in if you are even a little carless in promptly attending  the court on the fixed date, Please note that the order would go against you. Hence try to be alert and face the challanges.

 
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Retired

 Dear Sir,

Please tell us what is the fault of the finance company? Is it going against the law?

 
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LAWYER HUBLI,KARNATAKA

We cannot say that the finance company is at fault nor they are acting against the law, but one thing we must be informed regarding the Procedured adopted are within the frame work of the law. Wheather the sale proceedings pertaining to the vehicle was conducted according to law,wheather the loanee was informed about the Auction,wheather the Auction was conducted without the violation of the rules framed,Or wheather any steps were taken to sell the vehicle for higher price,

Many times the seized vehicles are being sold, to some of the known agents who regularly participate in the sale proceedings-hand in glow with each other and the records are being maintained in such a way to show that the vehicle was sold for lesser price,Such type of Act is illegal. If the vehicle was sold as per the valuator,then the sale price could have been adjusted to the loan account and the persons would not be put to any hardship or sufferring.

 
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