Date of filing : 04-07-2011
Date of order : 28-10 -2011
IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD
CC. 160/2011
Dated this, the 28th day of October 2011
PRESENT
SRI.K.T.SIDHIQ : PRESIDENT
SMT.P.RAMADEVI : MEMBER
SMT.K.G.BEENA : MEMBER
Damodharan, 38 years, } Complainant
S/o.Narayanan
R/at Thachangad, Panayal.Po,
Hosdurg Taluk, Kasaragod.Dt.
(Adv.A.Manikandan, Hosdurg)
1. Bajaj Auto Finance Ltd, Rep.by its } Opposite parties
Manager, Manjooran Estate, 4th floor,
Old Paravoor Road, Edapally,
Cochin. 682 024.
2. Zain Motors, Rep.by its Manager,
Kovvalpalli, Kanhangad South.Po.
Hosdurg Taluk, Kasaragod.Dt.
(Adv. Babu Chandran, Kasaragod)
O R D E R
SMT.K.G.BEENA, MEMBER
The case of the complainant Sri. Damodaran is that he purchased a Bajaj Plantina Motor Cycle from opposite party No.2 with the financial assistance of opposite party No.1. As per the agreement entered into between the complainant and opposite party No.1 complainant has to repay the loan amount by 24 monthly instalments of `1085/- each starting from 21-07-2008. After repaying the entire loan amount the complainant approached opposite party No.1 for no objection certificate for cancellation of hypothecation of vehicle. But did not issue the No objection certificate. Hence the complaint.
2. Eventhough notices to opposite parties 1 & 2 served in time opposite party No.1 remained absent and set exparte.
3. According to opposite partyNo.2, the loan agreement is entered into between the complainant and opposite party No.1, and they have no knowledge about the terms and conditions of the loan agreement. Opposite party No.2 is not aware of any transaction which took place in between the complainant and opposite party No.1. Opposite party No.2 is not the agent of opposite party No.1 and there is no deficiency in service on the part of opposite party No.2. Opposite party No.2 is not liable to pay any compensation to the complainant.
4. Complainant filed proof affidavit on support of his case. Exts. A1 to A5 marked. Both sides heard and documents perused.
5. After considering the facts of the case the following issues were raised for consideration.
1. Whether there is any deficiency in service on the part of opposite parties?
2. If so, what is the relief?
6. Issue No.1: Whether there is any deficiency of service on the part of opposite parties
Complainant purchased ‘Bajaj Plantina Motor Cycle’ from opposite party No.2 with the financial aid of opposite partyNo.1, opposite party No.2 acted as an agent who arrange the finance for the said vehicle from opposite party No.1. Opposite party No.2 sold the vehicle to the complainant and arranged financial aid from opposite party No.1. There is no deficiency of service on the part of opposite party No.2. The complainant has every right to demand no objection certificate after repaying the entire loan amount. Ext.A1 is the lawyer notice sent by the complainant to opposite party No.1 on 29-03-2011 demanding NOC as he wanted to sell the vehicle. But opposite party No.1 neither send a reply nor complied with the demand. At the time of sanction the loan, opposite party No.1 collected 24 cheques leaves from the complainant as a security for prompt payment of the loan. . Even after repayment of the entire loan amount opposite party No.1 is retaining the documents of the complainant. That amounts unfair trade practice and deficiency of service. What was the purpose of retaining the cheque leaves evenafter repaying the entire loan amount is not explained by opposite party No.1. Complainant apprehends that there is a chance of misusing those cheque leaves by opposite party No.1.
7. Here the complainant with the financial aid of opposite party No.1 purchased a Bajaj Plantina Motor Cycle. As per the agreement entered into between the complainant and opposite party No.1 the complainant has to repay the loan amount in 24 monthly instalments of `1085/-. The opposite parties received 24 cheque leaves as a security for prompt repayment of the loan. After repayment when the complainant approached opposite party No.1 for no objection certificate, for cancellation of hypothecation of the vehicle, but they rejected the request without any valid reason.
8. Now the complaint is intending to sell the vehicle to a 3rd party for which NOC is necessary. Complainant caused to sent a registered lawyer notice calling upon to pay damages and issue NOC. But opposite party No.1 neither send any reply nor complied with the demand. Opposite partyNo.2 sent reply notice denying his liability. Complainant made opposite party No.2 as a party since payment to opposite party No.1 is made through the office of opposite party No.2.
9. The act of not issuing No Objection Certificate for cancellation of HP endorsement and retaining the cheque leaves even after repaying the entire loan amount, is illegal and it amounts to deficiency in service. Opposite party No.1 had enough time to cancel the hypothecation agreement and provide NOC to the complainant with his documents.
10. Issue No.2. What is the relief?
The complainant made the last instalments on 14-08-2010. The complainant wanted to sell the vehicle to a 3rd party for which cancellation of hypothecation and no objection certificate is highly necessary. But opposite partyNo.1 was not ready to heed the request of the complainant. Due to the delay in issuing NOC the complainant could not sell his vehicle. Now the value of the vehicle considerably depreciated and the complainant has to sustain loss due to the indifferent attitude of opposite party No.1.
11. The complainant is entitled to get back the cheque leaves deposited as a security for the repayment.
Hence the complaint is allowed and opposite party No.1 is directed to issue a no objection certificate for cancellation of hypothecation of vehicle bearing Reg.No. KL-60A-1642 along with `4,000/- as compensation and `2,000/- cost to the complainant within 30 days from the date of receipt of this order. Failing which on application by the complainant direction will be given to the concerned registering authority to cancel the hypothecation agreement favouring the opposite party.
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
Exts.
A1. 29-03-2011 Copy of lawyer notice.
A2.& A3 postal acknowledgement cards.
A4. 19-04-2011 reply notice.
A5. 14-08-2010 Receipt issued by Bajaj Auto Finance.
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
Pj/ Forwarded by Order
SENIOR SUPERINTENDENT
