Debt Recovery Must Stay Within the Law
Supreme Court ruling sends a strong message against arbitrary vehicle seizures, coercive recovery methods and unlawful action New Delhi, September 22. (SDNA) Taking a loan creates a financial obligation, and lenders have every legitimate right to recover money that remains unpaid. But that right comes with a boundary: the law. A lender cannot turn a recovery exercise into an act of coercion, humiliation or arbitrary seizure. A recent Supreme Court ruling has underlined this principle while dealing with the seizure of a commercial vehicle. The judgment makes it clear that a borrower's default does not give a bank or finance company unrestricted freedom to recover its dues by any means it chooses. The case concerned Hari Dutta Sharma, who had taken a vehicle loan in 2019 from Cholam...