Saturday, December 8, 2012

Seizure of vehicle by Bank or Financial Company is illegal

In case of non payment of installment of loan amount taken by any person (borrower) for purchase of vehicle, the concerned Bank or Finance Company has no right to seize that vehicle. Justice Ashok Bhushan and Justice S.S.Tiwari of Hon'ble High Court Allahabad has decided a Civil Writ Petition on 06/12/2010 and held that if any borrower faild to pay loan amount, Bank or Finance Company has right to file a Civil or Criminal suit for the recovery of loan amount. They can not seize that vehicle. (based on 2011 (1) ALJ 663) -Pramod Kumar Agrawal