LatestLegal Updates 18 September 2026
Supreme Court Bars Lenders From Using Forceful Vehicle Seizure
The Supreme Court has issued a landmark ruling that prohibits lenders from using intimidation, threats or physical force to seize a borrower’s vehicle during loan recovery. The decision follows a case where a borrower defaulted on a loan from Cholamandalam Investment and Finance, highlighting the court’s stance on protecting consumer rights against aggressive recovery practices.
*The Supreme Court has stepped in to stop lenders from using muscle power to repossess vehicles.*
- The bench ruled that any form of intimidation, threat or physical force in vehicle seizure is unlawful.
- The judgment stemmed from a dispute involving a borrower who defaulted on a loan from Cholamandalam Investment and Finance Company Ltd.
- Lenders must now follow legal procedures and cannot resort to coercive tactics.
Read the full article here.
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