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Shivamogga: The Shivamogga District Consumer Disputes Redressal Commission has directed HDB Financial Services to return a JCB machine to a borrower after holding that the finance company had illegally repossessed the vehicle without issuing prior notice, in violation of RBI guidelines and judicial directions.
According to the commission, complainant Manjappa K of Bennur village in Sorab taluk had availed a loan of Rs 31.67 lakh from HDB Financial Services to purchase the JCB. He was required to pay a monthly instalment of Rs 71,500 and had been making regular repayments.
However, due to heavy rains and repair work on the machine, he defaulted on three instalments. The finance company allegedly repossessed the JCB on August 6, 2025, without serving any prior notice or following due legal procedure.
The complainant later offered to pay ₹1 lakh and requested the return of the vehicle, but the company allegedly insisted on repayment of the entire outstanding loan amount. Aggrieved by the action, he approached the District Consumer Commission through his advocate.
After hearing both parties, the commission, headed by President T. Shivanna and Member B.D. Yogananda Bhandary, held that the finance company had violated RBI norms and the principles laid down by the High Court and Supreme Court regarding repossession of financed assets, thereby amounting to deficiency in service.
The commission directed HDB Financial Services to return the JCB within 45 days. It further ordered the company to pay ₹2,000 per day to the complainant for every day of delay beyond the stipulated period until the vehicle is handed over.
The commission also awarded ₹10,000 as compensation for the mental agony and loss suffered by the complainant, along with litigation costs. It warned that failure to comply with the order within 45 days would attract interest at 12 per cent per annum on the awarded amount.
This post was last modified on July 31, 2026 8:51 am