Saturday, 01 December , 2007, 10:44
Chennai: ICICI Bank, that came under considerable media fire, for the methods used by its recovery agents, has earned a breather.
The imposition of a Rs 55-lakh fine in the Tapan Bose Case by the Delhi State Consumer Commission has been stayed by the Delhi High Court, on an appeal filed by the bank.
The Commission had fined the bank for employing “goons” to recover a car that was taken on a loan by Bose and for which a couple of instalments were due. It had deplored the practice of banks intimidating customers to pay instalments.
At the hearing held earlier today, the Court observed that judicial pronouncements should exhibit sobriety. It noted there is no power to impose punitive damages in excess of Rs 10,000 under Section 27 of the Consumer Protection Act. It also observed that general directions couldn’t be given (by the state consumer forum), which can be given only by writ courts. Holding that the forum had clearly exceeded its jurisdiction/powers, the Court stayed the order and the show-cause notice and orders passed on show-cause.
The next hearing has been fixed for March 31, 2008
ICICI Bank fined for Rs.50 lakhs