RE: PROCEDURE FOR REPOSSESSION OF VEHICLE
We refer to your letter dated 15.05.2006 and our letter dated 07.05.2006 on the above subject matter.
We understand that you have sought our opinion whether BANK 1 can send a notice to COMPANY 1 (the “COMPANY 1”) regarding not to renew the fitness and tax token of the car, registered in the name of BANK 1 since the customer of BANK 1 failed to make payment of installment against the car loan facility.
BANK 1 may send a letter to the COMPANY 1 to the effect that the car in question is registered in the name of BANK 1 and the Customer was authorised under a Car Loan Agreement to use the car upon regular payment of the monthly instalments against the car loan. Since the Customer has defaulted in repayment of the car loan, the said authorisation to use the car stand cancelled and the Customer is no longer entitled to use the car and BANK 1 is taking necessary steps towards repossession of the car. In the said letter BANK 1 may request COMPANY 1 not to receive any request from the Customer of renewal of the fitness or road tax in order to enable BANK 1 to repossess the car.
Should you have any further query, please do not hesitate to revert back to us.
For: “The Lawyers & Jurists”