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.

Repossession of Vehicle Is Not Theft: Calcutta High Court Quashes Case Against Bank Agent for Taking Back EMI-Defaulted Car

The Calcutta High Court ruled that repossessing a loan-funded vehicle after repeated EMI defaults is not theft and quashed the criminal case against a bank agent. The court held that taking back a car after default is lawful.