Legal Question in Banking Law in India
A loan was given by a firm under a hire-purchase agreement for purchase of vehicle. The borrower executed a pronote in favour of the firm advancing the money, which was assigned to the Bank, but the loan covered by hire purchase agreement was not so assigned. Does the bank have a locus standi to bring a suit against the borrower on the basis of collateral security of the pronote? Discuss.
Asked on 4/01/13, 10:54 pm
5 Answers from Attorneys
J. Radhakrishnan
independent Practice
The Bank if it proves it is a holder in due course of the Promissory note can sue the borrower and attach the vehicle. But mere negotiation of pronote is not sufficient to assign the security for the same given to the original promisee
Answered on 4/02/13, 8:43 pm
Aniruddha Pawse
Aniruddha.P.Pawse Advocates
no academic questions
Answered on 4/03/13, 4:00 am
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