Charanjit Singh Chadha And Ors. vs Sudhir Mehra

The Supreme Court held that the appellants, a non-banking financial institution, were entitled to repossess the vehicle under the hire purchase agreement due to the respondent's default in payment of instalments, despite the respondent's claim of regular payments. The Court emphasized that the hire purchase agreement allows for repossession in case of default, and thus, the allegations of criminal offences under Sections 406, 420, and 120-B IPC were not substantiated. The appeal was allowed, and the High Court's decision to not quash the complaint was set aside.