"Recovery of vehicle to be effected in due process of law and not by use of force" - SC

The Supreme Court of India, recently reiterated again the principles of laws, particularly in the decision, rendered in ICICI Bank Ltd. Vs. Prakash Kaur (supra),in respect of the recovery of hire-purchased vehicle by the Bank from the defaulters of loan yesterday, while disposing off Civil Appeal No.9711 of 2011 in the matters of the appellants CITICORP. MARUTI FINANCE LTD, that " It is, necessary for us to go into the said question all over again and we reiterate the earlier view taken that even in case of mortgaged goods subject to Hire-Purchase Agreements, the recovery process has to be in accordance with law and the recovery process referred to in the Agreements also contemplates such recovery to be effected in due process of law and not by use of force. Till such time as the ownership is not transferred to the purchaser, the hirer normally continues to be the owner of the goods, but that does not entitle him on the strength of the agreement to take back possession of the vehicle by use of force.The guidelines which had been laid down by the Reserve Bank of India as well as the Appellant Bank itself, in fact, 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 this Court, such an action cannot but be struck down. This is again a landmark ruling of our Apex Court, against any such forceful controversial action, carried out by any such bank for the recovery of any kinds of the hire-purchased vehicles from any such the borrowers in default