Allahabad High Court Bans Use of Force by Finance Firms to Seize Vehicles

The Allahabad High Court ruled that finance companies cannot use <b>coercive tactics or goons</b> to seize vehicles over loan defaults. A division bench comprising Justice J J Munir and Justice Indrajeet Shukla stated that repossession must occur through legal channels, such as civil courts or arbitration, rather than through recovery agents. In a case involving borrower Sadab Ahmad, whose vehicle was allegedly seized at gunpoint, the court ordered the <b>immediate return of the vehicle</b> without preconditions. The court further directed the company to restructure the loan without penal interest and imposed a cost of Rs 10,000.