Non-closure of Loan

Location/place: Ernakulam

Name of company/service: South Indian Bank

I had taken a loan from South Indian Bank, Kanjikuzhy Branch, Kottayam, Kerala (A/C NO: 0315655000000113) for purchase of a car (Mitsubishi Lancer) on 13th January 2007 for Rs. 6,35,000.00. The loan was taken under an explicit agreement that the repayment will be undertaken on an installment of Rs. 13,500.00 for 60 months.
This was specifically agreed to at the time of availing the loan and these are the terms under which Vehicle loan agreement was signed by me.
As per the Vehicle loan agreement, which was signed by me, this is specifically mentioned.
It is true that I have defaulted in some payments during the term of the loan, but everything was regularised from time to time, and penal interest as imposed by the bank was also paid without question. The 60th installment (the last and final payment) was paid by me on time on 16th January 2012.
During all these five years, the bank has not made any additional claim, or given any intimation about any additional payments or dues, other than the above mentioned penal interest which was promptly paid by me.
Now, after the last installment was paid, the bank is demanding another Rs. 31,842.00. I have already paid all the 60 installments and the penal interest due on delayed payments. There is no justification for any additional payment.
On this pretext the bank has not released my spare key, or the No-Objection Certificate to cancel the Hypothecation endorsement in the Registration Certificate. Due to this I am unable to sell the car.
I had an offer to sell the car at a price of Rs. 4.5 Lakhs, in January. Now, since the car is nearly one year older, I am being offered only 3 to 3.5 Lakhs. This means that I have incurred an additional loss of Rs. 1.0 Lakh plus interest on the same from January.
I have sent them several letters, the last 2 of them by Registered Post Acknowledgement Due. The Bank has not even bothered to reply to any of these letters.

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