sir I have creta, car and it is bought on SBI loan. now on me criminal case was lodged in miss appropriation of funds case under 420 and 408 case in 2018. car was brought on bank loan still Rs. 5 lakh is pending. and bank people took away my car.
still my case is in court and actually 3 people cheated me and I trasferred 28.75 lakhs to their bank accounts. I actully govt employee working as assistant professor. I was incharge principal in govt college. govt filed case against me and I returned total amount to the government I concerned many people and legal experts they told me to refund the whole amt to government. on their advice I repaid all amt by making loan and returned but after collecting whole amt from me govt dissmissed me from job. now I am totally in debt fighting for life. please suggest me on this case what I have to do next.
now bank has took car due to unpaid loan emi amt. but in my case the car is also included. now whether bank has right to sale the car and settle their loan amt. plz suggest me
In the given situation according to me the banks can recover a secured vehicle when a borrower defaults, but they must follow the statutory and judicially-prescribed procedures — they can not directly use force and sell at will. Under the SARFAESI framework and typical hypothecation agreements, a secured creditor may take possession and sell the asset after issuing statutory notices and following auction rules.
If a vehicle is also involved in a criminal case or is in police custody, the financier normally needs the court’s permission to dispose of it — courts often require an application under CRPC provisions (e.g., Sections 451/457) to sell seized property and appropriate proceeds toward the loan.
Judicial guidance emphasizes that repossession must be lawful and non-violent; the Supreme Court and several High Courts have condemned forcible seizure and held that banks must use recognised legal remedies. Borrowers can challenge unlawful seizures and seek relief or compensation.
Practical advice that can be considered in this situation.
(1) Confirm whether the bank followed SARFAESI/notice requirements
(2) Check if the vehicle is under police custody or court attachment — if so, seek court orders or object to the sale
(3) Preserve payment records and communications
(4) Immediately consult a lawyer to move the appropriate civil/criminal/court petitions or negotiate a settlement. Timely legal intervention often prevents loss of livelihood and preserves the right to any surplus after sale.
