We have one Chevrolet Tavera car, model 2011, with a tax plate. Due to our inability to maintain it, we sold it to a person by taking an agreement from him. The agreement stated that from the day of handing over our vehicle, i.e., 5th November 2014, he agrees to pay the remaining installments (39 out of 48 installments remaining by that day) regularly. Otherwise, we can reclaim the vehicle. This agreement was done on a 20 Rs bond paper from the concerned person.
However, from November 2014 to the current date, i.e., 2/3/2015, he hasn't paid even a single rupee for the finance installments. As the finance agreements are still under our name, the concerned finance people are threatening to file a cheque bounce case against us.
Legal Action Against the Buyer
Is it possible to file a case against the person to whom we sold the vehicle? The person is expressing his inability to pay the installments, showing no interest in keeping the vehicle, and stating, "I can't pay even a single installment, and you can legally do whatever you can."
Kindly advise on what steps to take in this situation.
From India, Hyderabad
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However, from November 2014 to the current date, i.e., 2/3/2015, he hasn't paid even a single rupee for the finance installments. As the finance agreements are still under our name, the concerned finance people are threatening to file a cheque bounce case against us.
Legal Action Against the Buyer
Is it possible to file a case against the person to whom we sold the vehicle? The person is expressing his inability to pay the installments, showing no interest in keeping the vehicle, and stating, "I can't pay even a single installment, and you can legally do whatever you can."
Kindly advise on what steps to take in this situation.
From India, Hyderabad
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Please answer the below: 1. Whose name the car was initially registered and have you transferred the registration? Did you visit RTO and change the ownership of the vehicle?
From India, Bangalore
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203From India, Bangalore
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Understanding Finance Company Loan Documents
The finance company must have taken various types of loan documents, such as the "Deed of Hypothecation of Vehicle," and repayment assurance from you as well as from guarantor(s). You must have submitted a copy of the R.C. Book with the hypothecation charge of the finance company. In the Hypothecation Agreement, though the hypothetical goods remain in the custody of the customer, the original owner has full legal rights over them. In other words, you are the custodian of the goods and not the owner until you repay the entire financed amount with all due interest.
Legal Implications of Private Sale Agreement
In your case, I think the financier is still not aware of the private sale agreement; therefore, he is threatening you with filing a case under section 138 of the Negotiable Instruments Act. As and when the financier gets the information or a copy of your private sale agreement, he will straightforwardly file a criminal complaint against your company. Please note that every finance company, whether private or government, always deals in money, money, and money only. There is no barter system that exists in the current finance scenario. You may approach the financier and obtain due written permission for the sale of the vehicle. You shall have to deposit the difference amount after crediting the sale proceeds.
First of all, you should take the vehicle into your possession and then approach your financier to gain their trust.
Regards
From India, Halol
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The finance company must have taken various types of loan documents, such as the "Deed of Hypothecation of Vehicle," and repayment assurance from you as well as from guarantor(s). You must have submitted a copy of the R.C. Book with the hypothecation charge of the finance company. In the Hypothecation Agreement, though the hypothetical goods remain in the custody of the customer, the original owner has full legal rights over them. In other words, you are the custodian of the goods and not the owner until you repay the entire financed amount with all due interest.
Legal Implications of Private Sale Agreement
In your case, I think the financier is still not aware of the private sale agreement; therefore, he is threatening you with filing a case under section 138 of the Negotiable Instruments Act. As and when the financier gets the information or a copy of your private sale agreement, he will straightforwardly file a criminal complaint against your company. Please note that every finance company, whether private or government, always deals in money, money, and money only. There is no barter system that exists in the current finance scenario. You may approach the financier and obtain due written permission for the sale of the vehicle. You shall have to deposit the difference amount after crediting the sale proceeds.
First of all, you should take the vehicle into your possession and then approach your financier to gain their trust.
Regards
From India, Halol
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Legal Issues in Vehicle Sale
The sale has been improperly conducted. If the vehicle had a loan, then the NOC (No Objection Certificate) from the finance company should have been procured. Whenever a vehicle is sold, an intimation to the RTO (Regional Transport Office) for a change of ownership should be filled out, and it should be ensured that the name change is completed. You have encountered a problem because basic legal provisions were not considered while selling the vehicle. Speak to the purchaser and ask him to return the money and take the car back. You have virtually no legal recourse against this person. The stamp paper agreement holds no legal significance.
From India, Pune
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The sale has been improperly conducted. If the vehicle had a loan, then the NOC (No Objection Certificate) from the finance company should have been procured. Whenever a vehicle is sold, an intimation to the RTO (Regional Transport Office) for a change of ownership should be filled out, and it should be ensured that the name change is completed. You have encountered a problem because basic legal provisions were not considered while selling the vehicle. Speak to the purchaser and ask him to return the money and take the car back. You have virtually no legal recourse against this person. The stamp paper agreement holds no legal significance.
From India, Pune
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VEHICLE LEASE AGREEMENT.doc
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Company Profile.ppt