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April 13, 2024
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“Fundamental Rights Upheld: Patna High Court bars banks from seizing vehicles with goons”

PATNA: In a key ruling, the Patna High Court has pronounced that banks and financial institutions cannot seize vehicles forcefully by employing hired individuals, commonly referred to as “goons,” in case of loan defaults by vehicle owners. The court deemed such practices as a violation of the fundamental right to life and livelihood, asserting that the rights of banks and financial companies must be exercised within the constitutional framework and in accordance with the law.

Justice Rajiv Ranjan Prasad, presiding over a bench that adjudicated several writ petitions concerning similar cases, emphasized the need for banks and financial institutions to operate in alignment with the basic principles and policies of India. The court firmly stated that no individual should be deprived of their livelihood or the right to live a dignified life without following the procedures prescribed by law.

In its order, the single bench of the Patna High Court highlighted that the Supreme Court has unequivocally prohibited the seizure of vehicles from borrowers in default of their loans through the assistance of so-called recovery agents, who often resort to strong-arm tactics.

This landmark judgment by the Patna High Court reiterates the significance of upholding constitutional rights and adherence to legal procedures. The ruling brings relief to vehicle owners who have faced the distressing prospect of their vehicles being forcibly taken away, often accompanied by acts of intimidation and violence.

The court’s decision serves as a reminder to banks and financial institutions that their authority should not be exercised in a manner that compromises the dignity and livelihood of individuals. The judgment emphasizes the need for due process and adherence to the law while dealing with loan defaults and asset recoveries.

While the verdict specifically pertains to the jurisdiction of the Patna High Court, it sets a crucial precedent that may influence similar cases across the country. It calls for a balanced approach in enforcing the rights of lenders while safeguarding the interests and dignity of borrowers.

Overall, the Patna High Court’s unequivocal declaration that banks and financial institutions cannot forcibly seize vehicles by deploying goons underscores the significance of upholding the fundamental rights of citizens and ensuring that financial actions are conducted within the bounds of the law. This ruling serves as a beacon of justice and is likely to have a lasting impact on how similar cases are handled in the future, safeguarding the rights and dignity of individuals across the nation.

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