FIRST LAW

Now law is well settled with regard to release of vehicle in a case where there is hypothecation agreement executed between registered owner and financer/banker; once borrower fails to pay installment in terms of agreement then, the financer/banker has a right to take possession of the vehicle back or get the vehicle released in its favour.

Release of vehicle in a case where there is hypothecation agreement executed between registered owner and financer/banker - Once borrower fails to pay installment in terms of agreement then, the financer/banker has a right to take possession of the vehicle back or get the vehicle released in its favour.

1. Anup Sarmah v. Bhola Nath Sharma,  2012 (4) ACC 697 In an agreement of hire purchase, the purchaser remains merely a trustee/bailee on behalf of the financier/financial institution and ownership remains with the latter. Thus, in case the vehicle is seized by the financier, no criminal action can be taken against him as he is re-possessing the goods owned by him.

Penal Code, 1860 - Ss. 143, 147, 351 & 379 - Criminal Procedure Code, 1973 -  S. 438 - A nticipatory Bail - Theft of Vehicle - F inancier - H ire Purchase Agreement -  Section  379 IPC is not attracted because as per the agreement the f inancier  has got every right to take possession of the vehicle.