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The SC ruled that a night-time vehicle seizure without seven-day notice violates RBI Guidelines and Articles 14 & 21, directing the financier to close the loan, refund ₹4.5 lakhs at 6 % interest and pay ₹10 lakhs compensation.
The NCDRC held that repossessing a vehicle during a pending appeal without notice to recover another vehicle's dues is an unfair trade practice. This protects consumers from coercive recovery and bars finance firms from seizing assets for unrelated debts.
The NCDRC has ruled that financial institutions cannot repossess a vehicle under SARFAESI Act without serving prior notice to the borrower, even in case of default. This reinforces due process as a non-negotiable element of consumer protection in secured lending, holding banks accountable for procedural violations with compensation of ₹2.5 lakh plus 12% interest.