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Home Best Practices India Delhi district court orders Citicorp Finance to apologise

Delhi district court orders Citicorp Finance to apologise

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In January-February 2008, Citicorp moved an application before a district court which said Kailash Prajapat had defaulted in paying instalments for his loan and, hence, the company required to reclaim the vehicle. The court then appointed an official receiver to get the possession of the vehicle, but restrained the company from selling it till the next date. Subsequently, Prajapat appeared in court and contended that despite appointment of a receiver, his car was forcibly taken away by the company’s goons and was later sold. He also claimed he had no outstanding dues.
 
The court sought an explanation from the company on Prajapat’s statement. As no cogent explanation came by, the district court sent a reference of contempt of court to the High Court, where the company contended they did not forcibly take away the vehicle. It further said there was some confusion over the period up to which the district court order was in force.
 
Justice Sanghi said “Citicorp, which has all the wherewithal and resources to make it aware of the laws and the consequences of willful disobedience of a court’s order, could not seek excuse claiming it was not certain about a judicial order.”
 
Last month, the Delhi High Court held the company guilty of contempt of court and read out a unique punishment — apology to be published in leading national dailies in the country’s four metros. The apology would unequivocally mention the company’s resolve not to ever reclaim a loaned vehicle using force.


 

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