Legal Question in Banking Law in India

Sir,

I have taken loan for my car from Kotak bank for 3.7 lakhs for 5 years. I have cleared all EMIs except 3 EMIs (as on 24-04-2014 )which were dishonored due to insufficient fund. But, Now bank has taken vehicle into their custody giving arbitrator notice. Now, when I ask for vehicle, they are saying that I have to pay outstanding of 3 EMI + 3 advance EMI + 12,000 legal fees +17,000 penal charge etc, including all it will be around 80,000+ . They are saying that, I have to pay this amount or foreclose the loan paying 2,69,000. There are only 24 EMIs left of Rs.8518 each. Please suggest me the what legal options I have. Can bank take custody of hypothecated vehicle for 3 EMI's Due? Please also suggest I can do?

Thanks in advance

Harish.


Asked on 4/24/14, 12:02 am

2 Answers from Attorneys
mohd mahboob

As per Indian law, everybody have equal right and duties. you have to approach to civil court .As per contract and court's order ,bank has right to take custody of hypothecated .you also approach lok adalat and consumer forum.

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Answered on 4/24/14, 2:17 am
Fca Prashant Chavan Expert Edge LLP

24.03.2014

Dear Sir / Madam,

Since 3 EMI's have been dishonoured, the Bank has the legal right to take custody of the hypothecated vehicle. You will need to pay up the 3 EMIs and regularize your loan A/c.

Regards,

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Answered on 4/24/14, 3:39 am


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