REPOSSESSION AGENCY AGREEMENT
This Agreement entered into on this _______
day of _______ 2014 between M/s INDUSIND
BANK LIMITED, a company incorporated under the Companies Act, 1956 and licensed
to conduct Banking operations under the Banking
Regulation Act, 1949, having its registered office at No. 2401, General
Thimmayya Road. ( East Street), Cantonment, Pune- 411011 and having its
Administrative office- Retail Banking Division at 115,116, G N CHETTY ROAD, T
NAGAR CHENNAI-600027 represented by its Regional Manager Mr. _____________________________,
hereinafter called as the “IBL”,
AND
A firm/ individual carrying on the business of rendering service of locating and repossessing the asset on the instruction of Financier/ (s) and represented herein by M/s. ________________, hereinafter referred to as the “ AGENT”
(The term IBL and AGENT include their/his
heirs, successors, administrators, assigns and legal representative)
Whereas IBL is carrying on the business of
Financing Vehicles, Trucks, Industrial Equipment, Machinery and other consumer
durables etc, under various lending schemes, wherein consequent on the default
committed by the Borrower/ Co-Borrower, IBL ios entitled to repossess the Asset
intentioned in the schedule as per the said Loan Agreement.
And whereas in respect of few cases IBL is
experiencing difficulties in locating the asset given on the Loan to various
customer consequent to default committed by the customer and for that purpose
IBL through it expedient and necessary to engage an Agent who is specialized in
locating and repossessing the Asset.
And where as M/s _________ specialized in locating and repossessing the assets let on finance by various companies and has agrees to render such service on a case basis referred by IBL for a consideration mutually to be agreed between them on the following terms and conditions.
NOW
THIS AGREEMENT WITNESSES AS FOLLOWS :
I)
Obligation of Agent :-
The agent shall as and when such cases are referred to them by IBL shall investigate the party’s background on such reffernce and shall not violate any provisions of law in doing so after ascertaining the details the agent shall before repossession, furnish the details of the party to IBL and also inform the Modus Operandi of the act of repossession.
The agent and undertakes that they shall
follow the procedure as prescribed below while repossessing the asset:
·
To
send an information/telegram along with the authorization letter by IBL to the jurisdictional Police station where the asset
is available and where the act of repossession
will be carried out and furnish such proof of service to IBL.
·
To send a similar information/telegram along
with proof of sending the same to the jurisdictional
Police station where the Borrower/Co-Borrower resides and furnish such proof of service to IBL.
·
While
repossessing the vehicle, the Agent shall carry the following documents and shall keep them readily available for
production:
a.
Copy of finance agreement
b.
Attested
copy of RC or B ledger extract
c.
Copies
of reminders/ notice telegram sent to customer
with proof of delivery
d.
Copy
of authorization letter to RP agent/employee
e. SOA/AFC statement to substantiate the dues preyable by the customer
·
The agent shall use only the necessary methods
and force within the permissible limits of
Law and which are required to repossess the asset.
·
The
agent shall never use force of any weapon againts the borrower or his representative or againts any third
parties while repossessing the assent fron the custody
of the borrower or his representative.
·
The
agent assures and declare that neither he nor its men/ representative shall
have any criminal record.
·
The
agent undertake that he shall not cause any law and order problem while repossessing the vehicle and shall not
cause any injury or grievous hurt or damage to any
person or property.
·
The
agent shall immediately on seizure of the asset take an inventory list of the
asset, part and accessories and other
articles available with the asset and obtain the signature of the Borrower/driver or any representative
of the Borrower and also signed by two witnesses.
·
The
agent shall not repossess the asset ( being the vehicle) when it is loaded with
goods and repossess the same only when
it is empty.
·
The
agent shall upon seizure of the asset immediately inform IBL and on further instruction, shall move the asset to any
place as per instructions from IBL and park the same
in the said place and obtain acknowledgement of having given possession to IBL or its Authorized representative and also
handover the key of the vehicle and other
documents including the inventory list and the goods as per the list.
· It is expressly understood that the agent shall have no power or authority to enter into any compromise, settlement or understanding the Borrower or his representative in respect of the asset repossessed and shall not redeliver the asset to the Borrower of his representative under any circumstances.
II) Obligation of IBL :
Ibl
shall provide name and address of the respective parties including the
Guarantor, Contract Details, asset
Details, Statement of Accounts Additional Finance charges Statement, A copy of RC book and insurance
policy any other relevant document in order
to establish and identify if any of the vehicle for which installments are
overdue and not paid by the
customer consequent upon which the asset has to be repossesses.
IBL
shall give an authorization letter as per format enclosed authorizing the agent
to carryout repossession.
IBL
shall, after repossession immediately send telegrams to:
a.
The
nearest police station under whose jurisdiction the vehicle is repossessed
b. The
police station having jurisdiction of the place of residence/business of borrower/Co-Borrower
c.
The
Borrower/co-Borrower
d. The police station within whose jurisdiction the branch office is located.
III)
Remuneration:-
The
agent is entitled to consideration of Rs. 10,000/- per asset as repossession charge on case to case basis.
IV) Indemnification:-
The agent aggress and undertake to Indemnify IBL against any damage/legal action that may be obtained against IBL due to negligence/failure on the part of the agent in not adhering to the procedure setout above. The agent is personally liable for all cost and consequences of any legal action that may be initiated against the agent or his men for any violation/negligence or failure on the part of the agent of his men while repossessing of the asset. The agent is fully responsible for the proper maintenance and security of the asset during the period after repossession and parking of the vehicle in the Yard. The agent shall not sub-delegate this authority to any other person.
V)
Tenure
This agreement is valid for a period of one year the date of execution and in case of any breach on the pray of the agent or its men: the same shall be terminated after issue of 15 days notice.
IBL is further entitled to rescind the contract at any time when in its opinion the service rendered by the agent is not satisfactory. IBL need not assign any reason for termination or cancellation of this agreement
VI) Governing Law :-
The law applicable to the Republic of India shall govern the Agreement.
VII) Jurisdiction :
In the event of any dispute or any difference, claims, employment or non employment or termination of this Agreement between the parties arising from or reletting to or toching upon anything contained in this agreement, such dispute shall be referred to alteration by a Sole Arbitrator, appointed by IBL, for which the Agency is giving its consent thereto. The Arbitration and Conciliation Act, 1996. Or any amendments thereof shall Govern such Arbitration proceeding. The venue of such Arbitration shall be at Chennai and the language of the Arbitration shall be in English, in the event of the Arbitration dying or discontinue or unable to continue the Arbitration due to any reason then another Sole Arbitration shall be appointed by IBL in his place and left his predecessor.
In witness whereof the parties herein have signed this agreement on the day and date first above mentioned.
FOR INDUSLND BANK LTD.
Regional
Manager For
M/s _______
Authorized Signatory
Witness : Director
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