Coimbatore: Bank told to compensate for forcible seizure, auction without notice

COIMBATORE: The Coimbatore Consumer Court directed a nationalised bank to pay Rs 10 lakh as compensation to a customer, holding it guilty of deficiency in service in a car loan dispute.

The complainant, Charles Daniel, a resident of Madukkarai in Coimbatore, had purchased a new car by availing a loan of Rs 12.70 lakh from a nationalised bank in Kovaipudur.

He stated that he had been regularly paying his monthly instalments with interest, but defaulted on dues of around Rs nine lakh during the period between 2020 and 2022, when his business was affected due to the COVID-19 pandemic. In his petition, Charles Daniel said he approached the bank seeking additional time to clear the dues, but his request was rejected.

The bank subsequently issued a notice demanding immediate repayment and initiated steps to repossess the vehicle while he was still arranging funds. He further alleged that bank officials forcibly seized the car from him in a public place while he was driving, leaving him to walk nearly three kms.

The petitioner also claimed that the vehicle was later auctioned for Rs 3 lakh without his knowledge, after which the bank initiated further recovery proceedings against him. After examining the case, Judge Dakshinamoorthy of the Coimbatore Consumer Court held that the bank had committed deficiency in service. The court ordered the bank to pay Rs 10 lakh as compensation to the complainant, along with Rs 10,000 towards litigation costs.