Forums > Discussion Forum > Consumer Forum
Date: Tuesday, 02 November 2004
Time: 08:06:21 PM +0530
I had purchased a car and hypothecated the same with a finance company. There were 34 EMI to be paid out of which 5 are not due. 23 were already paid and 6 were overdue as on 27/10/04. On the same date we paid them further 2 instalments but the finance company did not accept and demanded all 6 overdue instalments to be paid. They forcibly took the car in their possession by employing manpower and are in the process of selling the car. In my opinion, since the car is hypothecated, the ownership & possession of the car remain with the power. I understand that in case of hypothecation, the finance company cant take the possession without court order. Only in case of hire purchase where the ownership is with the lender, the finance co. can seize the goods under security without court order.
We have already got a stay from the court not to sell the car. We have also shown our willingness in writing to the court as well as to the company that we are ready to make the payment. But the company is contending that since the vehicle is seized, the loan a/c is cancelled and hence we have to pay the due & undue installments together with penalties, towing charge, Cheque bouncing charge and every other charge under the sun.
In fact I m more annoyed of the treatment meted out to our staffs by employing goons and using third degree language. Though we have filed an FIR with Ahmedabad Police u/s 504 & 506(2), I intend to bring the things into the notice of the people. Since this is an American Company registered in India, I was thinking of writing to American Embassy about the unethical & illegal behavior of an American company by employing goons. One thing I would like to emphasize here that I have not seen any Indian Finance Company coercing the borrowers in this manner.
S. N. Kedia
B-1, Shri Krishna Centre,