Auction Terms

1. Definitions and Abbreviations:

Unless the context otherwise requires the following words, wherever they appear, shall have the meanings ascribed to them below:
b) “Chola” means Cholamandalam Investment and Finance Company Limited.
c) “Dealer” means a dealer certified under the Equipment Bazaar Certified Dealership Program.
d) “EMD” means Earnest Money Deposit or Pre-Bid EMD to be paid by the Bidder to qualify for participation in the auction.
e) “Payment Service Provider” means a person who runs an authorized payment system and who has been engaged by Chola to provide services of the Payment Service Provider on the Website.
f) “Payment Gateway” means the online payment portal operated on the Website by the Payment Service Provider.
g) “Purchaser” means the successful Bidder who pays the Final Sales Price for the Equipment.
h) “Minimum Expected Price” means a pre-determined price of the Equipment decided by the Seller.
i) “Seller” means a Registered User, Dealer or Chola who lists their Equipment for sale on the Website.
j) “Equipment” means the Equipment/equipment listed for sale on the Website through auction or bidding.
k) “Equipment Information” includes year, make, model, condition, details of damage, if any, sustained by the Equipment, estimated monetary value of the damage, drivability, accessories, mileage, odometer disclosures, Equipment identification number (for instance, the engine and chassis number and serial number).
l) “Website” means www.cholamandalam.com and the mobile application, Equipment Bazaar.

Capitalized terms used in these Terms and Conditions of Auction (“Auction T&C”), but not defined herein, shall have the meanings ascribed to them in the User Agreement available on the Website at https://cholamandalam.com/user-agreement

2. Subscription Fees: (As of now we are not collecting)

The Bidder who intends to bid in the auction must pay such subscription fee as may be prescribed by the Website, from time to time. Equipment details will be available to the Bidder only upon successful payment of the requisite subscription fee. The subscription fee shall be determined by Chola at its sole discretion.

3. Earnest Money Deposit or Pre-Bid EMD:

a)  The intending Bidder(s) may place their bids on the Website. However, the intending Bidder(s) must register their Permanent Account Number (“PAN”), their permanent/current residential address, and their Bank Account details on the Website and pay the EMD for their bid to be accepted. The intending Bidder (s) must submit all such documents as may be required by Chola from time to time, including, without limitation, proof of address. Provided that the Bidder/s bidding for the Equipment/s listed by Chola is/are exempted from providing their Bank Account details.

b)  The EMD can be remitted only through the registered Bank Account.

c)  The Bidder(s) who pay the EMD will be eligible to participate in the auction.

The EMD amount paid by the Bidder(s) will be held in a non-interest bearing account of Chola. If the Bidder is successful, this EMD amount will be blocked and adjusted against the Final Sales Price (as defined below). In the event of an unsuccessful bid, the EMD will immediately cease to be blocked and will be refunded to the Bidder(s) within 2 (two) working days from the end of the bidding period (“Refund Timeline”). However, if the Bidder instructs Chola to use the entirety of such refundable amount as EMD for any other auction(s) on the Website, and such amount is blocked as EMD for such new auction(s) before the expiry of Chola’s Refund Timeline, then Chola’s Refund Timeline will be calculated from the end of the bidding period for such new auction(s). If only a part of the refundable EMD is used as EMD for a new auction, the unused and unblocked amount shall be refunded in accordance with the Refund Timeline.

The amount of EMD charged for each transaction is subject to the sole discretion of Chola.

The EMD does not include any platform usage or service charges, and it shall form part of the purchase price when the transaction is carried out. Further, no interest is payable on the EMD.

4. Timing of Auction:

a)  Preview Time: Preview Time is a period of time which may be provided, at Chola’s sole discretion, to all Bidders prior to the commencement of bidding. This is to facilitate the Bidder(s) to view auction details such as Equipment specifications, bidding details and bidding rules. Chola and the Website are under no obligation to provide Preview Time and Preview Time may be provided only for such transactions as may be determined by Chola, at its sole discretion.

b)  Start Time: Start Time refers to the commencement of the auction.

c)  Duration: refers to the length of time the auction is run. The Duration will be specified on the Website and bids will only be accepted during this time period.

d)  Extension or Curtailment of Auction Duration: Chola reserves the right to curtail or extend the Duration for any reason, including:

(i)  Curtailment of Duration: - if no bids are placed for a specified period of time (inactivity time)
(ii)  Extension of Duration: _ if bids being placed towards the end of the scheduled Duration.


e)  End Time: End of the auction refers to the termination of the Auction Duration, beyond which no further bids will be accepted.

5. Terms of Auction:

a)  Chola provides an e-auction service on the Website to enable User/s to sell and purchase Equipment pursuant to the terms and conditions set forth below:

(i)  The Dealer must pay a fee to list their Equipment in the auction at such rate as may be determined by Chola in its sole discretion.
(ii)  Participation in auctions conducted on the Website shall be treated as conclusive evidence that the Bidder has carefully read the terms and conditions of the auction, the User Agreement and Privacy Policy published on the Website as amended from time to time and as prevailing at the time of the auction. No objections or complaints will be entertained once the bid is placed. (iii)  Chola does not provide warranty or guarantee as to the quality, features, or condition of the Equipment (s) or about its fitness for a particular purpose.
(iv)  If the Dealer rejects the highest bid, the Dealer shall be liable for any damages/loss caused to the highest Bidder and/or Chola. Provided that Chola reserves the right to accept or reject any bid for Re-Possessed Equipment (as defined below) sold by Chola without assigning any reason thereof.
(v)  Chola reserves the right, in its sole and absolute discretion, with or without notice, to postpone or cancel an auction or withdraw a Equipment from an auction. Chola will have no liability or obligation to the Seller or Bidder (s) because of any withdrawal, postponement, or cancellation of an auction. Provided that the EMD shall be refunded to the Bidder (s) on cancellation of the auction.
(vi)  If an auction is cancelled after the Bidder has remitted the Final Sales Price (as defined below), the sole and exclusive remedy available to the Bidder shall be to claim the refund of Final Sales Price and the Pre-Bid EMD from the Seller
(vii)  Any rights, title and interest to the Equipment purchased through the auction will be transferred in the name of the Bidder or his authorized representative only after receipt of the Final Sales Price by the Seller. It is the Seller’s responsibility to transfer the vehicular/other records in the name of the Purchaser immediately on completion of sale. Chola shall in no way be responsible for the transfer of such records. Provided that for Re-Possessed Equipment , the Purchaser shall be responsible to transfer the vehicular/other records in their name, immediately on completion of sale (as specified in Clause 11 (d) below).
(viii)  All bids once submitted cannot be withdrawn or cancelled.
(ix)  A Seller may choose to set a Minimum Expected Price for the Equipment In this case, no bids will be accepted below the Minimum Expected Price. Provided that Chola reserves the right to vary the Minimum Expected Price for any Equipment at its sole discretion.
(x)  The sale of the Equipment can be completed only after Chola’s confirmation. (xi)  Chola is not responsible for the failure to execute a bid, for errors relating to the execution of a bid, or for technical failures, which may hinder the bidding process.
(xii)  In no event shall Chola be liable for any direct or indirect, consequential, or incidental damages, or damages for lost profits, loss of revenue, loss of use, arising out of or related to the auction.

6. Obligations of Bidders and Sellers:

a) Bidder:

(i)  Every Bidder shall keep their mobile number, email address and other contact details valid and operative for the successful purchase of the Equipment (s).
(ii)  No Bidder shall engage in unfair practices or collusive bidding with any other Bidder. Any such unfair practice or collusive bidding is a gross and material breach of the terms and conditions of the Website and the terms and conditions of the auction process.

b) Seller:

(iii)  The Seller shall have all rights/title/interest in the Equipment listed for auction on the Website; or the Seller shall have such rights/title/interest in the Equipment conferred on him/it in writing by the owner of the Equipment to sell it through auction on the Website. (iv)  No Seller shall bid or employ any person to bid at such auction in relation to the Equipment listed by such Seller.
(v)  No Seller shall make use of any pretended bidding to raise the price of the Equipment
(vi)  The Seller shall be responsible to ensure the accuracy and completeness of the Equipment Information provided by him/it in respect of Equipment being auctioned on the Website.
(vii)  If a sale fails solely due to the default of the Seller, the Seller shall pay Chola a penalty of Rs. 5000/- or such other amount as may be determined by Chola, at its sole discretion, from time to time.

7. Post-Auction Process:

a)  At the end of an auction, the top Bidder (s) will be contacted by Chola’s representative within a reasonable period of time from the End Time.
b)  The representative will first call the highest Bidder to confirm their bid. If the highest Bidder cannot be contacted despite several attempts, Chola reserves the right to declare that such Bidder has forfeited their EMD. This forfeiture shall be communicated by Chola to the relevant Bidder.
c)  Upon contact, if the highest Bidder is not interested in purchasing the Equipment the Chola team will continue their discussion with the next highest Bidder (s).
d) The Bidder, who confirms their interest in the Equipment will visit the specified premises to inspect the Equipment The date of inspection will be mutually agreed by Chola and the Bidder (“Appointed Date”). If the Bidder does not visit the premises on the Appointed Date or on the next alternate date, Chola reserves the right to declare that such Bidder has forfeited their EMD.
e)  If the Bidder visits the premises for inspection:
(i)  The Bidder and the Seller may successfully negotiate a price for the Equipment (“Final Sales Price”); or
(ii)  The Bidder may refuse to purchase the Equipment If the Bidder refuses to purchase the Equipment Chola reserves the right to declare that such Bidder has forfeited their EMD.
f)  The Purchaser shall collect the Equipment from such premises within 2 (two) days of payment of the Final Sales Price to the Seller or as expressly notified by the Seller in writing, whichever is later, otherwise demurrage and parking charges will be charged at such rate as may be determined by Chola from time to time, at its sole discretion.
g)  Unless stated otherwise, Chola will refund the EMD amount to all unsuccessful Bidder(s). The EMD will be refunded within a reasonable period of time as may be prescribed by the applicable law or based on the prevailing market standards.

8. Payment of Final Sales Price:

a)  If the highest Bidder fails to pay the Final Sales Price to the Seller within 2 days of the date informed by Chola or on the Website or such other time stipulated by Chola to the highest Bidder, the highest Bidder agrees that the Seller may, in their sole and absolute discretion, without any liability to do so, cancel the winning Bid and offer the relevant Equipment for re-sale without any notice to the highest Bidder. Further, Chola has the right to suspend or cancel the Bidder’s subscription and/or consider such Bidder’s EMD to be forfeited. In such case, a Bidder shall be eligible to participate in a new auction only after paying the amount of EMD and/or subscription fee, as may be necessary. In case this event happens multiple times, Chola has the right to forbid the Bidder from participating in future auctions.

b)  If the Final Sales Price is paid to the Seller through the Website, Chola shall collect its commission and applicable taxes through the Payment Gateway and the balance will be transferred to the Seller’s designated bank account (the details of which shall be communicated by the Seller to Chola, in writing, whether reduced to physical form or otherwise). If the Equipment for which payment is made has been funded by a loan from Chola, the dues against such credit facility will also be collected by Chola through the Payment Gateway.

c)  The commission charged will be agreed on before the Equipment is auctioned. If the Dealer violates the agreement with Chola regarding commission payable, Chola has the right, inter alia, to suspend the certification of the Dealer and/or forbid their participation in future auctions on the Website.

d)  If the Final Sales Price is paid by the Purchaser directly to the Dealer, then the Dealer is liable to pay Chola’s commission and applicable taxes for successful facilitation of the sale based on the terms agreed to prior to the auction and the Dealer shall also be liable to repay any credit facility availed from Chola.

e)  All obligations of the Dealer to repay credit facilities availed from Chola shall be subject to the terms and conditions of such credit facilities.

9. Inspection reports:

a)  Chola offers Equipment inspection services on the Website.

b)  The Purchaser (s) agree that they will not rely solely on any inspection report published on the Website in their decision to purchase a Equipment

c)  Inspection reports are not a warranty or guarantee on the Equipment Neither Chola, its employees, agents, third-party service providers or representatives, make any representations or warranties, express or implied, to any actual or prospective Purchaser as to the condition of the Equipment or as to the accuracy or completeness of any information provided in an inspection report.

10. Exclusion of Warranties:

For this Section 10, the term “Seller” shall be restricted to a User and Dealer.

a)  The Website functions exclusively as an intermediary for User/s and Dealers. As an intermediary, Chola makes no warranty, express or implied, of any of the listed Equipment (s) merchantability and/or fitness for a particular purpose. The Seller is responsible for all specifications and descriptions of the Equipment (s) and Chola accepts no responsibility for any errors or omissions.

b)  The Seller and Bidder hereby agree and acknowledge that any certification granted by Chola to Dealers under any program is not, and does not intend to constitute, an endorsement or certification of the Equipment listed by the Dealer. The ‘Equipment Certified Platinum Dealership’ certification merely attests to the creditworthiness of the Dealer, who is holding it, for the limited purpose of availing inventory funding facility from Chola, based solely on the documents provided to Chola for scrutiny.

c)  If the Bidder has any dispute with the Seller, the Bidder agrees that no claims shall lie against Chola. Chola expressly disclaims the accuracy or completeness of any information provided to Bidders regarding the Equipment , whether provided in written, verbal, or digital image available on the Website.

d)  Equipment Information provided by Seller on the Website is for convenience only. Bidder shall not rely on Equipment Information in deciding whether or how much to bid on a Equipment offered for sale on the Website. The Bidder is advised to exercise its discretion.

e)  It is the sole responsibility of the Bidder to ascertain, confirm, research, inspect, and/or investigate Equipment and any and all Equipment Information prior to purchasing the Equipment .

f)  Chola does not represent that any of the Equipment sold on or through the Website are in a road worthy condition, mechanically sound, or maintained at any guaranteed level of quality. The Equipment (s) may not be fit for use as a means of transportation and may require substantial repairs and expense.

g)  Neither Chola nor the Seller shall in any event be responsible or liable for any damage occurring due to the unsafe or improper loading or securing of a Equipment for transport. However, if such transport of Equipment has been organized by or on behalf of the Seller, the Seller shall be liable for any damage occurring due to the unsafe or improper loading or securing of a Equipment for transport.

h)  Chola shall have no liability for a Equipment listed on the Website, whether or not stored in the Seller’s premises. Further, for a Equipment removed from the Seller’s premises, under no circumstances will Chola be liable for subsequent claims of damage or loss of any kind or nature whatsoever.

i)  Chola shall have no liability to the Bidder for any delay in performance (and the time for performance shall be and is extended accordingly) if that delay is due to circumstances beyond Chola’s reasonable control (“Force Majeure Event”), including any delay or failure on part of the Seller to complete the transaction.

j)  All commercial/contractual terms pertaining to the purchase of the Equipment shall be separately agreed between the Seller and the Purchaser. The commercial/contractual terms may include without limitation, the price, shipping costs, payment methods, payment terms, date of delivery, mode of delivery, warranties related to the Equipment and after sales services related to the Equipment

k)  It is the responsibility of the highest Bidder to inspect the Equipment prior to sale, and satisfy itself as to the origin, description, tax arrears, pendency of any legal proceeding in relation to the Equipment transferability of ownership, availability of ownership documents, operability, suitability, age, durability, mileage, completeness, condition, and fitness of the Equipment before paying the Final Sale Price. The highest Bidder will exercise and rely on their own judgment as to the condition and quality of the Equipment and as to the fitness of the Equipment for their purpose. The Equipment will be available for inspection at the location specified by the Seller.

11. Auction of Re-Possessed Equipment :

a)  This Section 11 deals with the conditions of sale of Equipment through auction by Chola and/ or its Affiliate (s) (as defined in the User Agreement).

b)  Chola and its Affiliate (s) use the Website for listing and selling, through auction, the Equipment /equipment which have been re-possessed by them from their borrowers (“Re-Possessed Equipment ”). The Re-Possessed Equipment are auctioned on an “as is where is” basis and Chola and its Affiliate (s) make no representations or warranties of any kind, express or implied, about the quality, condition, value, or fitness of the Re-Possessed Equipment .

c)  It is the responsibility of the Purchaser to inspect the Re-Possessed Equipment prior to sale, and satisfy itself as to the origin, description, tax arrears, pendency of any legal proceeding in relation to the Repossessed Equipment transferability of ownership, availability of ownership documents, operability, suitability, age, durability, mileage, completeness, condition, and fitness of the Re-Possessed Equipment The Purchaser will exercise and rely on their own judgment as to the condition and quality of the Re-Possessed Equipment and as to the fitness of the Re-Possessed Equipment for their purpose. The Re-Possessed Equipment will be available for inspection at the location specified by Chola.

d)  It is the responsibility of the Purchaser to transfer the vehicular/other records in their name, immediately on completion of sale, Chola shall in no way be responsible for the transfer of such records.

e)  The Purchaser agrees that no claims for the return or replacement of the Re-Possessed Equipment or for the refund of any amount shall lie against Chola and/or its Affiliates after they have inspected the Re-Possessed Equipment

f)  All commercial/contractual terms pertaining to the purchase of the Re-Possessed Equipment shall be separately agreed between Chola or its Affiliates and the Purchaser. The commercial/contractual terms may include without limitation, the price, shipping costs, payment methods, payment terms, date of delivery, mode of delivery, warranties related to Re-Possessed Equipment and after sales services related to the Re-Possessed Equipment

g)  Chola or its Affiliate (s), shall be liable to pay a refund in case of a late delivery of the Re-Possessed Equipment The date of delivery shall be mutually agreed in writing, whether reduced to physical form, or otherwise, by Chola or its Affiliate (s) and the Purchaser; and may be mutually extended by them in writing. Chola and its Affiliate (s) shall not be liable to pay the refund if the late delivery was due to a Force Majeure Event and/or due to non-compliance with the Terms and Conditions of Auction by the Purchaser, including his/its failure to transfer the ownership of the Equipment or failure to submit proof of ownership.

12. Indemnity:

The Seller agrees to indemnify Chola, its Affiliates, subsidiaries, directors, employees, officers, agents, suppliers, service providers, and consultants, from all claims, demands and damages, whether actual or consequential, of every kind arising out of or relating to any of such Seller’s listings, transactions or any other use of the Website, the Seller’s breach of this Agreement or violation of any law or the rights of a third-party.

TERMS AND CONDITIONS OF BIDDING

Bidding:  In a Bidding conducted on the Website there is no pre-defined period of time for the placing of bids. The Seller is authorized to run the Bidding till he/it is satisfied with the value of the bid.

The terms of the auction shall apply, mutatis mutandis, to bidding.