Patna High Court has given an important verdict that no company can do coercion.
There are many customers who buy their cars or bikes by taking loans from banks and then for some reason they are unable to repay the loan, in such cases the bank sends its agents to collect the loan amount and seizes the vehicle from the customers. In one such case, the Patna High Court has given a verdict. While giving the verdict in the case, the High Court said that forcibly towing a vehicle is a violation of someone’s fundamental rights. No company has the right to do coercion.
FIR can be filed against the person who does coercion
While giving the verdict in the case, the Patna High Court has said that forcibly confiscating vehicles from vehicle owners who do not repay the loan is illegal. This is a violation of the fundamental right to life and livelihood of the Constitution. Legal action should be taken against such threatening actions and an FIR should be registered. Apart from this, the Patna High Court said that vehicle loans can be recovered by following the provisions of securitization. A single bench of Justice Rajiv Ranjan Prasad of the Patna High Court, while disposing of a batch of writ petitions, had slammed banks and finance companies for forcibly seizing pledged vehicles (even at gunpoint). The Patna court has directed all the superintendents of police in Bihar to ensure that no vehicle is forcibly seized by any recovery agent.
Court imposes a fine of Rs 50,000
The court had delivered this verdict on May 19 while hearing five cases of forcible seizure of vehicles by recovery agents. Each of the erring banks/finance companies was fined Rs 50,000. In his 50-page judgment, Justice Ranjan cited 25 more Supreme Court judgments. It also mentioned a South African decision.
How appropriate is it to forcibly seize a vehicle through intimidation in this way?
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