Vehicle auction without intimation and asking to pay 6 lakh

Dear Client,
Given the scenario, you should immediately consult with an Advocate specializing in cheque bounce cases and Debt Recovery Tribunal Cases to understand your rights and remedies to navigate the issues legally and effectively. If a Bank/NBFC seizes and auctions a vehicle without providing prior notice to the defaulter borrower, it can lead to severe consequences for both the bank and the borrower. If a vehicle is repossessed without proper notice, the subsequent auction of that vehicle is also invalid. The lender must restore the vehicle to the borrower and can only proceed with the auction after complying with the necessary legal requirements. Banks/NBFCs are required to adhere to RBI guidelines regarding repossession procedures, including providing adequate notice. Banks/NBFCs must issue a demand notice requiring the borrower to discharge liabilities within 60 days before proceeding with repossession. The aggrieved borrower can challenge the seizure and auction by Bank/CBFC as illegal before the Debt Recovery Tribunal (DRT) or consumer forums and in case of commercial vehicle before the commercial court. The borrower can file a complaint against the Bank/NBFC with the RBI for violating guidelines related to repossession. The SARFAESI Act, 2002 requires that the lender must follow specific procedures when taking possession of hypothecated assets. This includes issuing a notice under Section 13(2) of the Act and allowing the borrower a chance to repay the dues before proceeding with repossession. Any repossession or auction conducted without adhering to these procedures can be deemed unlawful, and the borrower may seek restoration of possession and compensation for any losses incurred. In the same way, in a cheque bounce case under Section 138 of the Negotiable Instruments Act, a legal notice is required to be served on the drawer of the cheque within 30 days of the instance of dishonor/bounce of the cheque. The purpose is to give the drawer of the cheque a proper notice regarding the dishonor of the cheque, irrespective of the reason behind the dishonor of the cheque and a chance to repay. The cause of action arises when notice is served on the drawer and the drawer fails to make payment of the amount of the cheque within 15 days. The payee must file the complaint against the cheque bounce before the Magistrate within 30 days of the expiry of 15 days of issuing the cheque bounce notice to the drawer of the cheque. In case, you failed to receive the said notice owing to mismatch in recorded address, lender cannot be held liable for the same. Hence, in view of the complexity and potential consequences involved, it is recommended to contact and consult with an experienced Advocate to navigate the matters effectively.