Do not employ goondas to get dues, banks told
The Supreme Court has strongly deplored the practice of banks and financial institutions using goondas and musclemen to recover loans from alleged defaulters.Updated: Jan 08, 2007 13:57 IST
The Supreme Court has strongly deplored the practice of banks and financial institutions using goondas and musclemen to recover loans from alleged defaulters.
Rejecting arguments by counsel Mukul Rohtagi appearing for the ICICI Bank that if force was not applied defaulters would not repay, a Bench comprising Chief Justice-designate K.G. Balakrishnan and Justice D.K. Jain asserted that recovery of loans, if any, should be through legal means.
“We are governed by a rule of law in the country. How can someone take possession by force? You cannot employ goondas,” the Bench said while dealing with a plea by the bank challenging the registration of a criminal case against its officials for allegedly using criminal force against a loanee.
The Uttar Pradesh police had earlier registered criminal cases against the bank officials, including its managing director, following a complaint that the bank sent musclemen to recover a car from a loanee for non-payment of loan.
First Published: Jan 08, 2007 13:57 IST