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2012 (7) TMI 105 - SC - Companies LawRecovery of loan - mortgaged goods subject to hire-purchase agreements - cheques issued by the Respondent towards payment of the hire-charges were dishonoured on presentation – vehicles recovered by use of force from the loanees – Held that:- recovery process has to be in accordance with law and the recovery process referred to in the Agreements also contemplates such recovery to be effected in due process of law and not by use of force - As the ownership is not transferred to the purchaser, the hirer normally continues to be the owner of the goods, but that does not entitle him on the strength of the agreement to take back possession of the vehicle by use of force. By its order, the District Forum, directed the Appellant to pay a sum of Rs. 1,50,000/-, along with interest at the rate of 9% per annum, from the date of filing of the complaint till the date of payment, together with a further sum of Rs. 5,000/- towards harassment and cost of litigation. Aggrieved by the said order, the Appellant preferred Appeal before the State Commission, Delhi. By its order, the State Commission, Delhi, affirmed the order of the District Forum and directed payment of a further sum of Rs. 50,000/- on account of punitive damages. In the instant case, the situation is a little different, since after the vehicle had been seized, the same was also sold and third party rights have accrued over the vehicle. It is possibly on such account that the Appellant Bank chose to comply with the directions of the District Forum notwithstanding the pendency of this case. Since the Appellant Bank has already accepted the decision of the District Forum and has paid the amounts as directed, no relief can be granted to the Appellant.
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