If You Don't Pay Loan or EMI On Exact Time... Supreme Court Says...
The supreme Court's ruling states that most individuals now pay for new cars in installments. However, there are instances when someone takes out a loan but is unable to make the EMI payments. This information will be helpful to you if you have also taken out a loan for your vehicle and are unable to make the EMI payments.
Everyone should be aware of the supreme Court's significant decision regarding people who are not making their loan EMI payments.
What took place in the case?
A while back, someone appealed to the Consumer court, claiming that he had borrowed the remaining amounts after making a down payment of ₹1 lakh for a car.
This loan's monthly installment was fixed at ₹12,500. The individual made consistent EMI payments for seven months before running into financial difficulties.
After nearly five months of waiting, the loan firm took the person's automobile without warning since they were unable to make the monthly payments. The individual filed an appeal at the Consumer court after learning of this.
After looking into the case, the Consumer court decided in favor of the individual, finding that the finance business had violated the law by seizing the automobile without warning and fining the lender ₹2,50,000.
What was said by the supreme Court?
When the financier appealed this case to the supreme court, the court overturned the Consumer Court's fine. However, the supreme court fined the financier ₹15,000 for the absence of notice.
According to the supreme court, a person cannot claim ownership of a car if they are unable to make loan payments on time. There is no issue if the financier takes possession of the car, but they have to notify the owner beforehand.
Everyone should be aware of the supreme Court's significant decision regarding people who are not making their loan EMI payments.
What took place in the case?
A while back, someone appealed to the Consumer court, claiming that he had borrowed the remaining amounts after making a down payment of ₹1 lakh for a car.
This loan's monthly installment was fixed at ₹12,500. The individual made consistent EMI payments for seven months before running into financial difficulties.
After nearly five months of waiting, the loan firm took the person's automobile without warning since they were unable to make the monthly payments. The individual filed an appeal at the Consumer court after learning of this.
After looking into the case, the Consumer court decided in favor of the individual, finding that the finance business had violated the law by seizing the automobile without warning and fining the lender ₹2,50,000.
What was said by the supreme Court?
When the financier appealed this case to the supreme court, the court overturned the Consumer Court's fine. However, the supreme court fined the financier ₹15,000 for the absence of notice.
According to the supreme court, a person cannot claim ownership of a car if they are unable to make loan payments on time. There is no issue if the financier takes possession of the car, but they have to notify the owner beforehand.