The Delhi State Consumer Disputes Redressal Commission has asked a private bank to pay over Rs 2 lakh to a man for forcefully taking away his financed car, saying even if a bank gives loan for a vehicle, the consumer remains its owner.
Judicial member S A Siddiqui and member S C Jain of the Commission asked Standard Chartered Bank to give Rs 2,06,840 to one Syed Parvez Yousuf, dismissing its appeal filed against a district consumer forum's order.
"It is well settled legal principle that when a vehicle is purchased by consumer on loan from the bank or financial institution, the person purchasing the vehicle is the owner of the vehicle. The financial institution cannot become the owner until and unless the ownership is legally transferred to it by the customer," the Commission said.
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It further said the manner in which the vehicle was taken away by the bank officials with the help of "musclemen" cannot be taken as peacefully delivered possession of the vehicle.
"In a democratic setup like ours, banks or financial institutions are permitted to resort to legal methods such as suit for recovery of loan amount. Thus, appropriate legal process should have been undertaken by the bank instead of the manner by which vehicle was taken," it said.
The Commission modified the district forum's order, saying the compensation awarded appeared to be higher, and reduced it from Rs 1 lakh to Rs 75,000. The forum had asked the bank to pay Rs 2,31,840.
Yousuf, in his complaint before the forum, had submitted that he had purchased a car which was financed by the bank and had given 34 post dated cheques for Rs 10,140 each in advance towards regular payment of EMIs.
