HDFC Bank fined for forcible seizure of car

"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 alongwith 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.