The Delhi Consumer Commission has directed the HDFC Bank to pay Rs 35,000 as compensation to an export house for forcibly seizing a financed car on its failure to pay two installments. "Whenever any bank resorts to such a method,it is liable to compensate the consumer as to the mental agony,harassment and humiliation suffered by him and return the post-dated cheques," the Commission headed by Justice J D Kapoor said. Dismissing the plea of the bank,the Commission said that it can only charge the unpaid installments and refund the margin money contributed by the capital-based Reliable Exports and Expositions (REE). The Bank approached the Commission against an order of a District Forum directing it to adjust the net depreciated value of the car against its balance principal loan and the unpaid installments along with compensation. The REE purchased the Maruti Esteem in January 2006 after the bank sanctioned the loan of Rs 4.56 lakh. It,however,defaulted the payment of two installments following which the bank forcibly seized the vehicle in July 2006. The Bank claimed that the car was seized in a peaceful manner after obtaining permission from the police authorities. The REE,on the other hand,contended that the act of forcible possession of the car by the bank was illegal,unlawful,arbitrary and absolute violation of settled law. The Commission also noted that the car was sold by the Bank a day before an interim order was passed by the Court restraining it from disposing off the vehicle. The panel upheld the Forum's order and directed the Bank to pay the compensation to the consumer.
