Supreme Court

SC Calls Bank Recovery Agents ‘Goons’ For Withholding Vehicle

The Supreme Court has harshly criticized a bank’s recovery agent, labeling them a “group of goons” for refusing to return a vehicle seized from a man despite a one-time loan settlement.

The court ordered the West Bengal Police to file a charge sheet against the firm, M/s City Investigation and Detective, within two months.

A bench of Justices Surya Kant and Ujjal Bhuyan directed Bank of India to compensate Debasish Bosu Roy Chowdhury, who took a ₹15.15 lakh loan to purchase a bus in Kolkata. The bank is instructed to recover this compensation from the recovery agent, who returned the vehicle in a damaged condition with altered chassis and engine numbers.

The court noted, “Respondent No. 4, a recovery agent, in actuality appears to be a group of goons, who use their muscle power to harass loanees on behalf of the petitioner-bank.” The Supreme Court emphasized that the investigation into the FIR against the firm should be completed without delay, and the trial court should proceed with the case accordingly.

The Supreme Court also upheld a Calcutta High Court order requiring the bank to pay Chowdhury ₹5 lakh in interim compensation for not returning the vehicle. The High Court had allowed Chowdhury to seek higher compensation through civil court.

Chowdhury had defaulted on his loan repayments in 2018, leading the bank to hire the recovery agent to seize his vehicle. Despite agreeing to a One-Time Settlement (OTS) of ₹1.8 lakh in 2021, the recovery agent failed to return the vehicle in proper condition. The Supreme Court also suggested that the bank seek the cancellation of the recovery agent’s license.

Read More: Supreme Court, Delhi High Court, States High Court, International

Meera Verma

Recent Posts

Punjab & Haryana HC Notice To Jindal Law School Over AI-Generated Exam Claims

The Punjab and Haryana High Court on Tuesday has issued a notice to Jindal Global…

13 mins ago

ED Files Money Laundering Complaint Against Charanjit Singh Bajaj, 4 Others

The ED on Tuesday has filed a Prosecution Complaint before the Special Court in Mohali…

35 mins ago

Pune Porsche Case: SC Rejects Anticipatory Bail To Father Of Minor Driver’s Friend

The Supreme Court on Tuesday denied bail to Arunkumar Devnath Singh, whose son is a…

2 hours ago

SC Dumps Plea Against Quashing LOC For Sushant Singh Rajput’s Ex-House Help

The Supreme Court on Tuesday dismissed the Centre's appeal against a Bombay High Court order…

2 hours ago

Rape Case: SC Issues Notice On Ex-Army Officer’s Plea For Quashing Charge sheet

The Supreme Court on Tuesday has agreed to review a plea from retired Army Captain…

3 hours ago

Chhattisgarh NAN Scam: FIR Against 2 Retired IAS Officers, Former AG

The Chhattisgarh Anti-Corruption Bureau on Tuesday has registered a case against 2 retired IAS officers…

3 hours ago