Legal Question in Banking Law in India

Dear Sir

I have taken a used car loan of Rs 180000 for the period of 48 Months for my brother in law(End user), from HDFC bank. He has paid the 11 EMI and total emi amount was Rs. 61271 and after that vehicle has been stolen.

Vehicle has recovered by Police but in very bad condition. Due to which he has to spend heavy money to repair that. For this he borrowed money from others and due to this reason after 11th month, EMI not paid to bank. Bank has put one cheque(Which is on my name and bank) of consecutive 3 EMI amount Rs. 16833 in my ICICI bank account and cheque was dishonored. Bank file a case in IPC 138 and summon released on my name.

Before this we came to know regarding this case and summon information we have surrendered the vehicle to Bank. Bank has sold the car in amount of Rs 97000 and showed the Balance amount of Rs. 84000. Now total amount we paid to bank is Rs. 61271+97000=158271 out of 180000(Principle amount).

Now iam in trouble because case is on my name and i am not the user. We want to settle this loan amount. Pls guide us the following things

1. In this condition, court will give little bit of support and favor to us or not.

2. On which min amount we can settle this loan

3. In this condition is it possible to transfer the loan and all this legal activity to end user(My brother in law)

The total time passed is 1 year from the released date of summons to me.

Pls guide i need you support in this.

Thanks & Regards


Asked on 10/16/10, 10:53 pm

2 Answers from Attorneys
Vishwa Arya Arya & Co.

before selling the car you should have asked the bank to withdraw the dishonour case. Min amount you will have to negotiate with bank depending upon your skill of negotiation. the court will support you. If the loan is in your name it can be transferred to end user only with his consent and bank consent.

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Answered on 10/16/10, 11:33 pm
J. Radhakrishnan independent Practice

Only serious negotiation with the Bank and arriving at some settlement will break the imbroglio in the matter. Before selling the vehicle by the Bank you should have asked the bank to withdraw the Sec.138 N.I.Act case. Anyhow, try with the Bank, through your lawyer

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Answered on 10/18/10, 1:21 am


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