Repossession--Financed Vehicle Through Recovery Agents--Repossession Without Due Process Violates Article 300A of Constitution
Existence of a repossession clause in a loan agreement does not authorise financiers or their agents to take the law into their own hands. Repossession of a financed vehicle through recovery agents, without demonstrating compliance with procedural safeguards such as notice and opportunity to the borrower, amounts to deprivation of property without authority of law and is violative of Article 300A of the Constitution. Disputes regarding outstanding dues require adjudication by competent forums on evidence and cannot justify unilateral repossession. While contractual disputes ordinarily do not warrant interference under Article 226, deprivation of property without authority of law is an exception attracting writ jurisdiction.
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