SC disapproves use of goons for loan recovery

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New Delhi, Oct 22 (UNI) The Supreme Court again disapproving the use of musclemen by financial institutions for recovery of their dues, today issued notices to the state of West Bengal, Magma Leasing ltd, a Kolkata based financing company and the principal debtor Sunil Khosla on a petition filed by surety guarantor Anil Khosla seeking criminal action against the Magma Leasing Ltd for harassing him.

Earlier, Mr DK Sharma, counsel for the petitioner Anil Khosla, contended before a bench comprising Justices PP Naolekar and Dalveer Bhandari that the financier was harassing him despite all his dues having been paid by the principal debtor.

According to the petitioner, Sunil Khosla had taken a loan for buying trucks and he paid nine instalments on time but defaulted further instalments and the financier recovered his dues from Khosla after selling his properties through auction under Calcutta High Court order.

Mr Sharma relying on the judgement of this court entitled as Manager ICICI Bank Vs Prakash Kaur and others also contended before the court that the finance company in his case had violated the judgement of this court in which it was held ''practice of recovery of loan by employing recovery agent was deprecated and discouraged and recovery of loans or seizure of vehicles only through legal means was approved of.'' This court had also held that bank cannot employ goons to take possession by force and bank was vicariously liable for the action of their agents.


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