In HDFC Bank Vs. Balwinder Singh [III (2009) CPJ 40 (NC)] Date of decision: 16.03.2009, the National Commission has strongly condemned the banks for employing musclemen and recovery agent to take forcible repossession of hypothecated vehicle from the customer.

In the instant Complaintant Mr. Balwinder Singh had complained against HDFC bank of employing musclemen and recovery agent to forcibly take re-possession of the vehicle and thereby had caused physical harassment and mental trauma. The District Forum had earlier allowed the complaint and had ordered the bank to pay Rs.4 lakh as compensation which the State Commission had also confirmed. The bank had filed a revision petition against the State Commission’s order. The National Commission dismissed the petition and awarded Rs.25,000/- as exemplary costs.

The Commission relied upon its judgement in Citicorp Maruti Finance Vs. S.Vijayalakshmi [III (2007) CPJ 167 (NC)].