Finance companies cannot forcibly take possession of loan-default vehicles
According to the Supreme Court, any and all recovery has to be in accordance with law. Quote:
NEW DELHI: The Supreme Court has warned financial institutions and banks against forcible taking away of vehicles under hire-purchase agreement when there is a default in payment of loans and said they could be saddled with punitive costs if they did so.
"Even in case of mortgaged goods subject to hire-purchase agreements, the recovery process has to be in accordance with law and the recovery process referred to in the agreements also contemplates such recovery to be effected in due process of law and not by use of force," said a bench of Justices Altamas Kabir, Cyriac Joseph and S S Nijjar.
| Source & Full Article : Times of India |
No comments:
Post a Comment