HC objects to goondaism to recover loans

 B L :PTI : Madurai :19 oct 2012

Madras High Court on Friday observed that finance firms giving loans for vehicle purchases should follow legal procedure for recovery of the dues and not resort to goondaism in seizing the vehicle.

“If a debtor fails to pay the monthly instalments for one or two months, there is a procedure. The firms should follow that procedure,” Justice N Kirubakaran said.

He was admitting a petition by one Kannan who submitted that he had taken Rs.20,000 loan from a finance firm here for purchasing a two-wheeler which had to be repaid in 24 instalments of Rs.1,224 each.

Due to “unforeseen” developments in his family, he could not pay the instalments for July and August 2012.

On August 23, when he was on way to his office, five persons (goondas), assaulted him and took away the vehicle.

He lodged a complaint with Police but they did not take any action. He had also petitioned the Police Commissioner.

However, no action was taken against the goondas who assaulted him, he submitted and prayed to the court to direct the police to take action against the finance firm and the goondas.

Petitioner’s counsel Pandian said if a borrower did not pay three instalments continuously, he should be informed and a case be filed in court, which alone could order for the seizure of the vehicle.