New Delhi: The Supreme Court on 26 February 2007 quashed the FIR registered against ICICI Bank by the Uttar Pradesh police, but asserted that banks and financial institutions cannot employ musclemen to recover loans.
A Bench of Justices A R Lakshmanan and Altmas Kabir expressed displeasure at ICICI bank’s action of forcibly taking away the vehicle of a widow, and passed a slew of suggestions to financial institutions for adopting legal means to recover loans from defaulters.
“We wish to make it clear that we do not appreciate the procedure adopted by the bank in removing the vehicle from the possession of the writ petitioner. The practice of hiring recovery agents who are musclemen, is deprecated and needs to be discouraged,” the Bench said while disposing of the petition filed by ICICI bank challenging the FIR registered against its officials by the UP Government.
The bank had moved apex court after the Allahabad High Court on a petition by a 75-year old widow Prakash Kaur, directed the police to register an FIR against the bank officials for allegedly using musclemen to snatch away her truck.