A Delhi court has allowed a bank to recover a car loan of ₹4.56 lakh from a borrower with 7% interest per annum from the date of filing of the recovery suit.
According to the suit filed by the bank, the borrower had taken a loan of ₹4 lakh to buy a car in 2012. However, he stopped paying instalments after repaying just ₹68,000. He also did not hand over the vehicle to the bank despite several reminders and personal visits.
Legal notice
The bank also served a legal notice and later filed the recovery .
The court also issued several summons to the borrower who failed to appear. The court finally decided to take action on the suit ex-parte. “The factum of the defendant [borrower] applying for credit facility and creating a charge over the vehicle by executing a deed of hypothecation has been established through unchallenged and un-controverted evidence. The defendant is held liable to pay ₹4,44,156 with 7% interest per annum,” said Additional District Judge Saurabh Partap Singh Laler.
