Forcible Repossession Of A Financed Vehicle Without Notice Violates Articles 14 And 21: Supreme Court Awards Rs 10 Lakh, Directs RBI To Act

A truck financed on a loan was seized at 1 a.m. by unidentified men who broke its steering lock, without the seven-day notice the loan agreement required, and later sold. The Supreme Court held the forcible repossession an arbitrary deprivation of livelihood violating Articles 14 and 21, ordered the financier to close the loan accounts, refund the sale price with interest and pay Rs 10 lakh compensation, and directed the RBI to enforce its own repossession guidelines.