Upon an agreed proposal, the Court ordered the auction sale of a deceased's vehicle. Proceeds must pay the bank and garage dues; remaining EMI payments to heirs are refunded, and residual funds are deposited.
Vehicle to be sold by auction; proceeds to clear bank/garage dues; EMI payments refunded to heirs; balance invested in FD.
This page shows the compact analysis of this judgement. The full analysis — procedural history, issue-by-issue holdings with ratio and obiter, advocates, and paragraph-level evidence for every claim — is being added to the record in batches and will appear here when this judgement has been through it.
905-NMT5-15.DOC
Atul
IN THE HIGH COURT OF JUDICATURE AT BOMBAY TESTAMENTARY AND INTESTATE JURISDICTION NOTICE OF MOTION NO. 5 OF 2015
IN
TESTAMENTARY PETITION NO. 1898 OF 2014
Prerna Wadhawan…Petitioner
Versus
Sheeri Mohan & Anr.…Respondents
Mr. Divekar, with Ms. Ashwini Pawar, i/b M/s. Divekar & Co., for
the Plaintiff.
Mr. Abhishek Singh, i/b MAG Legal, for Respondent No. 1.
Mr. U.S. Shetty, for Respondent No. 2.
Mr. Vikram Deshmukh, i/b ANB Legal for Intervenor.
CORAM:G.S. PATEL, J
DATED:20th March 2015
PC:-
1.The 2nd Respondent has tendered an affidavit in reply. It is
taken on record.
2.The Notice of Motion can be disposed of with the following
order which is agreed to by all.
1 of 4
905-NMT5-15.DOC
3.The Audi A6 vehicle No. UP-14-BM-7340 is an asset of the
estate of the deceased. It has been in a garage for repairs for some
time. It was taken on a hypothecation arrangement with the 2nd
Respondent, the Corporation Bank. Since November 2014, the
EMI payable to the 2nd Respondent have been paid by the son and
daughter of the deceased, viz., Raghav Wadhawan and Shiffali
Wadhawan. The total amount paid by way of instalments is Rs.
2,55,000/- till March 2015. The outstanding dues to the 2nd
Respondent–Bank as on 28th February 2015 are Rs. 13,19,798/- as
per the affidavit in reply of the 2nd Respondent.
4.The widow of the deceased, i.e., the 1st Respondent, submits
that she should be entitled to take over the loan to the Bank and to
use the car, on her undertaking to refund to the son and daughter
the amount of EMI paid by them and also on undertaking to
discharge the outstanding liability of the 2nd Respondent–Bank.
5.There seems to be no agreement on this proposal by the 1st
Respondent. The 1st Respondent cannot claim any exclusive title to
the vehicle. It remains an asset of the deceased’s estate. The
primary consideration must be the interest of the estate of the
deceased.
6.The vehicle will, consequently, be sold by auction. The
Court Receiver, High Court, Bombay will depute a suitable person
to conduct this auction after inviting bids. The 1st Respondent,
Raghav Wadhawan and Shiffali Wadhawan will all be entitled to bid.
If, Raghav or Shiffali Wadhawan bid for the vehicle, they will be
2 of 4
905-NMT5-15.DOC
entitled to adjust the amount, if any, that each of them has paid as
EMI to the 2nd Respondent–Bank.
7.From the proceeds realized, the dues of the 2nd
Respondent–Bank upto the date of the sale, but without any
additional charges for a premature closure of the hypothecation
account, will be paid to the 2nd Respondent–Bank. Should Raghav
and Shiffali Wadhawan not be successful bidders, then, out of the
proceeds realized the amounts paid by them as EMI without
interest shall be refunded and this refund shall be made to the
accounts from which these EMIs were paid. The remainder shall be
retained by the Prothonotary & Senior Master to the credit of the
petition and the amount will be invested in a fixed deposit with any
nationalized Bank initially for a period of one year and shall be
renewed thereafter for like periods till further orders of the Court.
8.The Court Receiver is directed to make a report in relation to
the bids received after the notice is issued before confirmation of
the sale.
9.In addition, the Court Receiver will also call for the details of
the amounts due to the garage, namely, Regent Garage Private
Limited. The repair bill and other charges of Regent Garage Private
Limited will also be paid out of the sale proceeds of the vehicle.
10.It goes without saying that the notice inviting bids will have
to be issued in newspapers in the NCR since the car is in a garage in
that area.
3 of 4
905-NMT5-15.DOC
11.The Court Receiver is directed to issue the advertisement
within a period of three weeks from today.
12.The Notice of Motion is disposed of in these terms. No
costs.
(G. S. PATEL, J.)
4 of 4
2 issues framed by the court
How should an asset of the deceased's estate, specifically a vehicle under hypothecation, be disposed of when there are differing claims from family members and a bank?
What mechanism ensures repayment of EMIs paid by heirs from the proceeds of selling estate property?
Prerna Wadhawan
Sheeri Mohan
G. S. Patel
As recorded by the court registry
Judgements on the same questions, provisions and authorities, from every court