In Brief
A financier sued a borrower under the Consumer Protection Act, 1986 for wrongful repossession of a financed vehicle. The lower forums awarded the borrower full refund of amounts paid and damages of Rs. 10,000 for physical and mental suffering. The Supreme Court held that the financier, as legal owner of the vehicle under the hire-purchase agreement, has the right to repossess upon default. Although proper notice was required and not served, this warranted only nominal compensatory damages of Rs. 15,000, not a full refund. The borrower had received free use of the vehicle for a year and was a defaulter on multiple instalments.
The lawyer headnote and full judgment text are available to registered users.