Consumer Protection Act - Hire-purchase agreement - clause 11 - Test of reasonableness/fairness

Mahin­dra and Mahin­dra Finan­cial Ser­vices Vs Ramesh Sawant 06.07.2007

First Appeal No. 24 of 2005
AK Goel, Narinder Singh Thakur and Saroj Sharma

2007 (2) SLC 460

Con­sumer Pro­tec­tion Act — Hire-purchase agree­ment — clause 11 — Test of reasonableness/fairness — Hire-purchase agree­ment — Default in install­ment — Re-possession of vehi­cle — Nat­ural jus­tice — Rights of par­ties are gov­erned by the terms of Hire pur­chase Agree­ment, but that does not mean that it can bypass the test of rea­son­able­ness and/or fair­ness — Before repos­ses­sion, respon­dents should have been given an oppor­tu­nity to either liq­ui­date the defaulted amount or face the con­se­quences — Vehi­cle to be returned to respon­dent — Appel­lant to take action if any in accor­dance with law.

IMPORTANT POINT Documents-Subordination to the Con­sti­tu­tion. All doc­u­ments like Hire-Purchase Agree­ment, laws, agree­ments etc., are sub­or­di­nate as well as sub­ject to the pro­vi­sions of Con­sti­tu­tion of India.

Consumer Protection Act - Hire-purchase agreement - clause 11 - Test of reasonableness/fairness