Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | HIRE PURCHASE AGREEMENT: Recovery process |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Disposed Off |
Headnote | HIRE PURCHASE AGREEMENT: Recovery process - Forcible Possession of vehicles - Held: Even in case of mortgaged goods subject to Hire-Purchase Agreements, recovery process has to be in accordance with law - Till the time the ownership is not transferred to the purchaser, the hirer normally continues to be the owner of the goods, but that does o not entitle him on the strength of the agreement to take back possession of the vehicle by use of force - The guidelines laid down by the Reserve Bank of India support and make a virtue of such conduct - If any action is taken for recovery in violation of such guidelines or the principles as laid down by the Supreme Court, such action cannot but be struck down.CONSUMER PROTECTION ACT, 1986: Hire-Purchase Agreement in respect of a Maruti Omni Car - On failure of hirer to pay hire charges in terms of repayment schedule, appellant (owner-bank) took possession of financed vehicle and sold it in auction - Complaint by hirer before Consumer District Forum alleging deficiency in service - Allowed by District Forum directing owner to pay a sum of Rs.1,50,000 - State Commission, affirmed order of District Forum and directed payment of a further sum of Rs. 50, 0001- on account of punitive damages - National Commission while dismissing revision petition modified order of State Commission by setting aside punitive damages - Instead, it directed appellant-bank to pay a sum of Rs.10,0001- to hirer by way of cost - On appeal, held: After vehicle was seized, it was also sold and third patty rights had accrued over the vehicle - Appellant-bank had complied with the directions of the District " Forum notwithstanding the pendency of the case - Since appellant Bank had already accepted decision of District Forum and had paid the amounts as directed, no relief could be granted to appellant. |
Judge | Honble Mr. Justice Altamas Kabir |
Neutral Citation | 2011 INSC 793 |
Petitioner | Citicorp. Maruti Finance Ltd. |
Respondent | S. Vijayalaxmi |
SCR | [2011] 14 S.C.R. 1050 |
Judgement Date | 2011-11-14 |
Case Number | 9711 |
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