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Delhi High Court orders CitiCorp finance to apologize
By Neelima Shankar
Jun 20, 2012
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Delhi high court passed a judgment ordering the lending and finance company, CitiCorp Finance, to publish an apology in leading national newspapers of four metros and along with it an unconditional resolve by the company to never use force to recover a loaned vehicle.

The judgment came in relation to a case in which CitiCorp sent thugs to recover a loaned vehicle in which there were defaults in payments of the installments.

Reading out the judgement, Justice Sanghi said, "It is clear that if the petitioner is allowed to go unpunished, it would shake the confidence of the litigating public in the rule of law. It would also lower the dignity and majesty of this court and courts subordinate to it."

He further added, warning the company, "In these circumstances, while once again warning the contemnor against resorting to such tactics in future, I direct the company to publish, in leading national dailies published from metro cities of Delhi, Mumbai, Kolkata and Chennai, public notices stating they shall not resort to taking forcible possession of vehicles or assets, which are taken on hire-purchase by their customer, and that possession shall be taken only in accordance with the due process of law.".

The event took place in Jan-Feb 2008 when the company itself presented an application before the city court. The application mentioned that a Mr. Kailash Prajapat had allegedly not paid the timely installments and so the company wanted to recover the vehicle.

In response to this application the court named an official receiver to reposes the vehicle but restraining the company from reselling it. But despite the courts order the company went ahead and sent thugs who forcibly took the vehicle and then sold it.

The court then held CitiCorp guilty of contempt of court and passed this judgment.


 


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