Harassment of loan borrowers by bank is crime: HC

Allahabad, Aug 9 (UNI) In a significant ruling, Allahabad High Court has ruled that the act of 'harassment' by bank authorities in cases of non-payment of loan by borrowers is a crime.

The court said if the loan was not repaid, proper course should be adopted by the bank authorities, instead of snatching the vehicle by force and depriving the custody holder from its benefit.

The act of the bank authorities, according to the HC is a cognizable offence.

This ruling was given by Justice A K Roopanwal in a writ petition filed by Lala Ram of district Pilibhit in Uttar Pradesh.

The petitioner had challenged two orders of lower court, whereby additional chief judicial magistrate and sessions judge, Pilibhit had rejected the application of the petitioner, filed under section 156[3] CrPC for registration of FIR against the bank authorities, who had snatched the petitioners' tractor in failure to repay laon.

Allowing the writ petition, the court set aside both the impugned orders sending the matter back to the trial court for passing a fresh order.

Quashing lower court order, the judge remarked ''a look at the orders passed by both the courts below show that the tractor was in the possession of the petitioner, though it was taken on loan.

''If the loan was not paid, proper course should have been adopted by the bank authorities instead of snatching the tractor by force. This act of the bank in my opinion is a cognizable offence.

''The lower court should have ordered for the registration and investigation of the case.'' The petitioner had taken loan from the State Bank of India. The concerned SBI branch manager and cashier were party in the writ petition.

UNI