Legal Question in Civil Litigation in India

I am working in vehicle finance department of one of the bank. My question is "when vehicle is hyphothicated by the bank to the customer and the said party is not paying the installment and the said vehicle is sold to third party, then what remedies are available to the bank against the customer as well as against the third party. how can we prove that he has sold the vehicle to the third party.

Asked on 5/17/11, 11:16 pm

4 Answers from Attorneys

Jyotishwar Bhosale Advocate, Bombay High Court

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Hi,

When the Vehicle is sold to customer, you might be checking his creditability to pay back. You might be reviewing his documents before sanctioning of the loan amount. If this procedure is followed by the Bank, then you have all the legal right to approach to the Court of Law, and get the vehicle/property (amounting to your claims) of the concern person attached. Also their is a procedure of be seizing the RC Book of the customer till the clearance of loan, then how can he sale the vehicle to third party? If he has sold the same, its illegal as per RTO Rules. Anyways legal procedure is bit lengthy, but you get your money back with interest and I suspect that the said customer will pay all the dues the movement you(Bank) approach the Court.

Answered on 5/17/11, 11:29 pm

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Professor SOMNATH MUKHERJEE MUKHERJEE ASSOCIATES(Cell +91 9874753359/ 9477781578)

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You can leagal action in both civil and criminal way against the party in the court of law . you can approach to motor vehicles department for proving the transfer of ownership. for details you may contact in my number 09874753359

Answered on 5/18/11, 8:21 am

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