The New Delhi District Consumer Disputes Redressal Forum observed that the Supreme Court, several High Courts and the National Consumer Commission have directed finance companies to adopt a civil procedure while taking possession of a vehicle and not to use musclemen for the same.
"In the absence of any evidence from opposite party (Tata Motors Finance) of giving notice to complainant before taking possession, we hold it guilty of deficiency in using forcible methods of repossession of the vehicle without following a civil procedure.
The bench directed Tata Motors Finance to pay Rs one lakh to Vikram Rana for the harassment caused to him.
The order came on Rana's complaint that on August 28, 2006 while he was driving his car, agents of the finance company stopped him near Naraina and they took possession of the vehicle.
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Rana had claimed that he was regularly paying the EMIs towards repayment of the loan which he had availed to buy the car and that the car was re-possessed by the finance company without giving him notice.
The forum, however, rejected the contention saying the finance company has not filed any evidence to show that it had served a notice on Rana before repossessing his car.