Court pulls up Citicorp Finance for employing goons
Citicorp Finance was slammed by a Delhi court for employing goons for repossessing a farmer's financed JCB construction vehicle.
By PTI |
NEW DELHI: Citicorp Finance was today slammed by a Delhi court for employing goons for repossessing a farmer's financed JCB construction vehicle even when it had appointed a receiver to resolve the dispute linked to default in repayment of loan by him.
"This is a clear case where the petitioner, Citicorp Finance India Ltd, continued to operate through its goons under the garb of getting an approval and seal of the court by filing a petition and praying for ex-parte interim order," Additional District Judge Ina Malhotra said.
The court issued bailable warrant against Branch Manager of the institution for Monday to the sum of Rs 20,000.
"It appears that vehicle was taken into possession by the petitioner through the goons. Not only did they take law into their own hands, they even decided to sell the same," the Judge observed.
The court's strong observations came when Jodhpur-based farmer Kailash Prajapti submitted before it that he had taken steps to liquidate the entire outstanding liability on the defaulted easy monthly instalment (EMI).
"This fact was not brought into the notice of the court. The sale was surreptitiously effected on February 25," the court noted.
It also found that the finance company did not take step to implement the execution of the court's order.
The court had on January two appointed Sohan Singh as receiver, passing an ex-parte order on the petition of the finance institution.
Prajapati had taken a loan of Rs 16 lakh from the finance institution. The farmer had to repay the amount in 52 instalments of Rs 52,505 but he had defaulted, prompting the institution to approach the court.
"This is a clear case where the petitioner, Citicorp Finance India Ltd, continued to operate through its goons under the garb of getting an approval and seal of the court by filing a petition and praying for ex-parte interim order," Additional District Judge Ina Malhotra said.
The court issued bailable warrant against Branch Manager of the institution for Monday to the sum of Rs 20,000.
"It appears that vehicle was taken into possession by the petitioner through the goons. Not only did they take law into their own hands, they even decided to sell the same," the Judge observed.
The court's strong observations came when Jodhpur-based farmer Kailash Prajapti submitted before it that he had taken steps to liquidate the entire outstanding liability on the defaulted easy monthly instalment (EMI).
"This fact was not brought into the notice of the court. The sale was surreptitiously effected on February 25," the court noted.
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It also found that the finance company did not take step to implement the execution of the court's order.
The court had on January two appointed Sohan Singh as receiver, passing an ex-parte order on the petition of the finance institution.
Prajapati had taken a loan of Rs 16 lakh from the finance institution. The farmer had to repay the amount in 52 instalments of Rs 52,505 but he had defaulted, prompting the institution to approach the court.
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