REPOSSESSION AGENCY AGREEMENT

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