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Vehicle forcefully ceased by financiers is this legal


19-Feb-2023 (In Banking / Finance Law)

Whether the financiers can cease the hypothecated vehicle without the intervention of court/legal process. This is being asked in veiw of ceasing forcibly the vehicle and causing hardship.

Answers (1)

Answer #1
313 votes

If the agreement in the present case is held to be a loan agreement and rights of the creditor are held to be those of a hypothecatee, rights of the parties under the agreement would be different. A hypothecatee, as already held, cannot take possession of the security without intervention of the Court, though he has a right to take possession or to sell the hypothecated property through Court or to give notice to the hypothecator to enforce the security.

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