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The action taken by the lender depends on the nature of the loan taken. The consequences may vary. But it's not good to not pay the emi, that may cause trouble for you.

Dear Sir,
You may go to consumer forum or civil court and get justice. You may also get issue a legal notice before such proceeding.

Dear Sir,

No body can enrich at cost of another. On the basis of this principle you are liable to refund the excess amount received by you.

Dear Client,
to answer this question , information regarding the amount of claim is necessary. stamp duty of requisit value is needed.

Dear Client,

You may file a PIL on behalf of the people raising the issue and providing them justice.

Dear Client,

Generally, the parent is not liable automatically for the car accident caused by their children. However, a parent or guardian may be liable if there is a failure to supervise the child, the parent was negligent in entrusting the car to the child, and when the car was used under the family purpose doctrine.

Dear Sir,
If your claim is not approved then lodge a complaint with insurance ombudsman or file complaint with Consumer Court thus you will get your claim amount.

Dear Sir,

You have to file execution petition and recover the same by attaching its properties. The company cannot get again stay order but your advocate must coordinate with you.

Dear Client,
As your friend did not possess a license the motor vehicle tribunal shall deem contributory negligence in such case and shall not pay much attention to the claim. Though you can receive a very small amount in cases of grave injuries and depending on other circumstances of the case.
Thank you

Dear Client
You can certainly move the consumer forum with all the relevant evidences as this appears to be a defect on services as well as malpractices. You can also try to file a criminal complaint against them for cheating and misleading but you need to consult a good lawyer with all the docs for the same.