Considering the provisions of loan agreement giving rights to lenders to directly take possession in
case of default and considering various decisions of Supreme Court of India, RBI guidelines and
provisions of SARFAESI Act, 2002, the court held that the covenants of the loan agreement providing
for re-possessing the vehicle do not provide for a procedure in accordance with the provisions of the
Act of 2002 and the Rules framed thereunder. In the garb of a power acquired by the financier under
the loan agreement to re-possess the vehicle, they cannot be allowed to take the law into their
hands and enforce the loan agreement by violating the legislative mandate and the regulatory law
such as as the Act of 2002.

Also can you add the following in the end of the Article : -“Author of this article: Adv. Ravish Bhatt, Solicitor, Senior Courts of England and Wales, ADIT, Chartered Institute of Taxation

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