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2007 Supreme(Ori) 137

2007 (I) OLR (SC) — 472
DR. AR. LAKSHMANAN AND ALTAMAS KABIR, JJ.
Manager, ICICI Bank Ltd.... Appellant
Versus
Prakash Kaur and others... Respondents
Criminal Appeal No.267 of 2007
(Arising out of SLP (Crl.) No.15 of 2007).
Decided on 26th February, 2007.

Headnote:1. CONTRACT ACT, 1872 - Secs. 172 and 176 - Indian Penal Code - Secs. 409, 511 and 420 - Hire purchase agreement - Bank advanced loan for purchase of truck - Default in payment of instalments - Possession of truck taken by Bank by hiring musclemen - High Court direction for registration of a case - Appeal allowed and High Court order set aside as parties agreed to settle the mat¬ter.

       (Paras - 8 to 15)

       2. PENAL CODE, 1860 - Secs. 406, 409 and 511 - Hire purchase agreement - Bank advanced loan for purchase of truck - Default in payment of instalments - Bank took over possession of vehicle through its recovery agent - Practice of hiring recovery agents, who are musclemen - Bank should resort to procedure recognised by law to take possession of vehicles in cases where the borrower may have committed default in payment of instalments instead of taking resort to strong arm tactics. (Para - 15)

       3. PENAL CODE, 1860 - Secs. 406, 409 and 511 - Loan granted by Bank - Default in payment - Recovery of same - Procedure - Recovery of loans or seizure of vehicles could be done only through legal means - The banks cannot employ goondas to take possession by force. (Para - 34)

JUDGMENT

ALTAMAS KABIR, J. — Leave granted.

2. This appeal has been filed by the Manager, I.C.I.C.I. Bank Ltd. against the order dated 7th December, 2006, passed by the Allahabad High Court in Criminal Miscellaneous Petition No.11210/2006 disposing of the petition with a direction upon the S.S.P. Allahabd, to ensure the registration of a case on the basis of Annexure VII to the Writ Petition and its investigation by a competent police officer.

3. Before adverting to the subject-matter of the writ petition, it may be pointed out that in the writ petition, the writ petitioner has chosen to implead as respondents, not only the Union of India and other police authorities of Uttar Pradesh but also the President/Chairman/Managing Director of the I.C.I.C.I Bank, the General Manager, Loans, I.C.I.C.I. Bank, Branch Sardar Patel Marg, Civil Lines, Allahabad and M/s. Kartik Associates, Banaras Automobiles, Kodopur, Ram Nagar, Varanasi, through its authorised Goonda Officers and Goonda Employees and Institutions created against the law for doing work and persons of the Institutes, Criminals to do work for I.C.I.C.I. Bank.

4. The subject matter of the writ petition relates to a loan taken by the writ petitioner from the I.C.I.C.I. Bank, Alla¬habad Branch for purchase of a truck. It appears that the writ petitioner defaulted in payment of the instalments and in terms of the agreement entered into between the writ petitioner and the Bank, the writ petitioner's truck was taken possession of by the bank authorities by use of force on 13th July, 2006. It also appears that the writ petitioner requested the Chief Manager (Loans), I.C.I.C.I. Bank, Sardar Patel marg, Civil Lines, Allaha¬bad, for release of the truck which was alleged to have been forcibly taken possession of by M/s. Kartik Associates, acting as the agents of the Bank. The writ petitioner appears to have also written to the said agents on 25th July, 2006, requesting them to provide details of the instructions given to them to seize the petitioner’s truck.

5. Since the truck was not returned to the writ petition¬er, she caused a legal notice to be served on M/s. Kartik Associ¬ates but the same was returned unserved as having been refused.

6. The writ petitioner contended that the Bank and its officials had systematically conspired to cheat the writ petition¬er by advancing the loan for purchase of the truck and accord¬ingly wrote to the police authorities on 3rd/4th September, 2006, requesting them to register the First Information Report of the alleged offences punishable under Sections 120-B, 400/403/406/409/417/418/419/420/421/422/424/466/467/468/469/571 and 511 IPC. It was also urged that since no steps had been taken by the police authorities on the basis of the application dated 3rd/4th September, 2006, the respondent Nos.1, 2, 5, 6, 7 & 8, being the Union of India and other officers of the U.P. Police, had committed offences punishable under Sections 166/167/212/218/221/120-B IPC and Section 13 of the Prevention of Corruption Act.

On the basis of the aforesaid allegations, the writ petitioner, inter alia, prayed for a direction upon the respond¬ent Nos.1, 2, 4, 5, 6, 7 & 8 to register a First Information Report in Civil Lines Police Station, Allahabad, against the respondent Nos.9 to 13 and during the period of investigation, to save the losses of the writ petitioner by recovering the truck along with all the documents relating to the truck and to hand over the same to the writ petitioner. The writ petitioner also prayed for a writ of mandamus to direct the respondent Nos.1 and 3 to cancel the licence of I.C.I.C.I. Bank and for other ancil¬lary reliefs.

7. On the basis of the aforesaid writ application, the Division Bench of the Allahabad High Court while disposing of the writ petition passed the following order :-

“The relief sought in this Writ Petition is for issuance of a direction for Registration of the case against the Respondents.

Heard learned counsel for the peti















































































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