Advocate Kaushik Kumar Dey

Questions Answered by Advocate Kaushik Kumar Dey

Q: Interim stay on unilateral loan closure under Section 38(8)

I financed an auto loan from IndusInd Bank. Vehicle was burned within 5 months. I filed a case in Ahmednagar Consumer Court. Insurer paid Rs 2,00,000, and I paid Rs 13,903. Total loan stands 100% cleared strictly "UNDER PROTEST" on 30-09-2026. Bank suffered zero loss, earning profit.On 22-09-2026, I legally objected to bank's forced foreclosure to destroy my right to vehicle substitution under Clause 1.1. In legal reply, bank states: "Any amendment to asset particulars... engine/chassis/registration particulars... cannot be construed as conferring an unilateral right... without Bank's approval..."The Judge at admission stage specifically asked: "Is there any past judgment or decided precedent regarding vehicle/asset substitution under a loan agreement? If yes, present it."Most victims lack insurance or are defaulters, so no precedent exists. How can I urgently get an Interim Stay under Sec 38(8) to freeze account status and stop unilateral closure? Advice needed.

Advocate Kaushik Kumar Dey answered
Unilateral closure to deny a contractual remedy provided under the agreement amounts to a deficiency in service and an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019.Under the provisions of law, u may get interum relief

Q: Interim Stay Order under Section 38(8) to freeze loan account status

I took an auto loan of Rs 2,13,722 from IndusInd Bank. Paid all EMIs on time, but within 5 months, the vehicle was destroyed in a fire. I filed a case in Consumer Court. The insurance company paid Rs 2,00,000, and I paid the remaining Rs 13,903. The entire loan stands 100% cleared "UNDER PROTEST". The bank suffered zero loss and earned a profit.As per Clause 1.1 of the agreement, the bank has technical provision for Asset Substitution (amending engine/chassis numbers), which they admitted in writing. However, now the bank is rushing to unilaterally close the loan account to stop hypothecation transfer to my new vehicle.The Hon'ble Judge asked if there is a past precedent for vehicle substitution. Most accident victims are defaulters, so no such precedent exists. Since the bank has provision but is denying it, how can I obtain an Interim Stay Order under Section 38(8) to freeze the account status?

Advocate Kaushik Kumar Dey answered
Vide the application u can ask for intrim stay/ Status qua. A proper direction can be passed by the forum. Unilateral closure to deny a contractual remedy provided under the agreement amounts to a deficiency in service and an unfair trade practice under Section 2(47) of the Consumer Protection Act, 2019.