Introduction

The Supreme Court's decision in Citicorp Maruti Finance Ltd. v. S. Vijayalaxmi reaffirmed that financial institutions must recover financed assets strictly in accordance with the law and RBI guidelines. The judgment emphasized that contractual repossession clauses cannot justify the use of force, coercion, or unfair recovery practices against borrowers. It also reinforced the jurisdiction of consumer forums to examine allegations of illegal recovery despite contractual agreements. This case commentary explores the facts, legal issues, judicial reasoning, and the broader significance of the ruling, highlighting the balance between lenders' recovery rights and borrowers' rights to dignity, fairness, and due process.