ICICI bank asked to pay fine of Rs 5,000

New Delhi: A Delhi court has imposed a fine of Rs 5,000 on ICICI bank for forcibly taking away motorbike of a person for not paying a loan instalment in time, observing that "show of muscle power" cannot be allowed in a country ruled by law.

Imposing fine on the bank for employing musclemen to snatch away the motorcycle of Syed Ansar Ali after he did not pay his loan instalment in time due to illness, Civil Judge Abhilash Malhotra said the amount would be paid to the victim.

"This court highly deprecates the practice adopted by the defendant (ICICI) bank in taking possession of vehicles from the defaulters by show of muscle power. The practice of robbing innocent individuals plying their vehicles... using muscle power can never be appreciated or endorsed in a country governed by rule of law," Malhotra said.

"A cost of Rs 5,000 is awarded in favour of plaintiff (Syed Ansar Ali) for the harassment and humiliation caused due to illegal repossession of the vehicle by the defendant (ICICI bank)," the court said.

Ali had submitted in his petition to the court that he had taken a loan of Rs 42,000 from the ICICI bank in 2005 for a period of two years payable at instalment of Rs 1,981 per month to purchase a motorbike.

In April 2005, Ali executed 24 post dated cheques of Rs 1,981 each in favour of the bank and also paid four advance instalment. The 24 instalments were to be paid from June 2005 to January 2007, he said.

Source: Financial Express