BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

==========

Complaint  Case No :  29 of 2010

Date  of  Institution  :  16.01.2010

Date of   Decision    :  06.05.2011

Devi Singh son of Hazaria Singh, resident of H.No.304, Village Dariya, U.T, Chandigarh.

….…Complainant

                                       V E R S U S

Bajaj Auto Finance Ltd., SCO No.56, 2^nd Floor, Sector 26-D, Chandigarh

          ..…Opposite Party

CORAM:          SH.LAKSHMAN SHARMA                         PRESIDENT

SH.ASHOK RAJ BHANDARI            MEMBER

MRS.MADHU MUTNEJA                        MEMBER

Argued by:     Sh.Deepak Aggarwal, Advocate for the complainant.

Sh.Balwinder Singh, Advocate for the OP

PER MADHU MUTNEJA, MEMBER

­­­­­­­

1]             The present complaint has been filed by Sh.Devi Singh against the OP claiming compensation for wrong presentation of cheques even when the entire loan had been repaid. 

                Briefly stated, the complainant had purchased a computer from Perfect Knitvision, Sector 35, Chandigarh for an amount of Rs.36,010/- against which he had made a down payment of Rs.10,311/-.  The remaining amount of Rs.25,699/- was financed by the OP.  This amount was payable in 18 equated monthly installments of Rs.1795/- each.  As per the complainant, the first 5 installments were paid through cheque while the remaining 13 installments were paid in lumpsum in cash on 21.10.2008.  After the entire loan amount was repaid, the complainant requested the OP that the remaining cheques should not be presented.  He also instructed his banker’s not to make payment to the OP on the presentation of the cheques by the OP. 

                Unfortunately, as per the complainant, the OP continued to present the cheques.  These cheques were not only dishonoured but the bank also imposed penalty of Rs.50/- each per cheque for dishonour.  The relevant portion of the bank statement has been placed at Ann.C-7. 

                Thereafter, when the complainant approached HDFC Bank for a vehicle loan, he was refused as his name figured in the list of defaulters as per CIBIL.  He was told that he had not repaid the entire loan of Bajaj Auto Finance (OP).  Though the amount of the penalty imposed by the bank was Rs.200/- only, but the harassment and humiliation as well as consequence thereof faced by the complainant due to the deficient act of OP was too much, which lead the filing of this complaint.

2]             After admission of the complaint, notice was sent to the OP.

                The OP in their reply has stated that the complainant availed finance of Rs.37,450/- from them.  The complainant after entering into a loan agreement was required to pay monthly installments of Rs.1795/- each for 24 months.  The installment No.3 & 4  due on 15.2.2008 and 15.3.2008 respectively were not cleared by ECS because of insufficient funds in the account of complainant. The complainant paid 13 installments on 21.10.2008 for EMI No.3,4,5,6,10,12,13,14,15,16,17,18 and 19 and the remaining 9 installments of EMI No.7,8,9,11,20,21,22,23 & 24 were still due from him.  Hence, as per the OP the entire loan was never cleared by the complainant.  Since the lumpsum amount against 13 installments were paid, the OP had waived off penal charges/dishonoured charges against dishonoured ECS of EMI No.3 & 4.

                As per Para No.5 of the reply, the OP has submitted that the installment No.20 due on 15.7.2009 and installments No.23 & 24 due on 15.10.2009 & 15.11.2009 respectively were dishonoured for the reasons of insufficient funds in the account of complainant.  Hence, the bank of the complainant had charged penalty of Rs.50/- each per dishonour.  As per the OP, the complainant had not paid the entire loan amount because of the dishonour of ECS mandate, hence the record of the complainant was shown as a defaulter in CIBIL.   Submitting that the complainant has no cause of action to file the present complaint and further submitting that the complainant has to pay penal charges of Rs.850/- towards ECS dishonour charges of EMI No.23 & 24, the OPs have prayed for dismissal of the complaint.

3]             Parties led evidence in support of their contentions.

4]             We have heard the ld.Counsel for the parties and have perused the record.

5]             The OP (Bajaj Auto Finance) has placed on record the Loan Form/Loan Agreement and complete account statement of the complainant  w.e.f. 29/06/2004 to 29/06/2010.

6]             The complainant has placed on record the purchase bill as well as his bank statement showing charges debited by the bank from his account as penalty for insufficient funds for 4 times.  He has not placed on record any receipt from the OP for the entire payment made on 21.10.2008.

7]             The complainant has submitted that the cause of action has arisen due to the imposition of four penalties of Rs.50/- each on him by the bank due to the wrong presentation of ECS by the OP.  The complainant has made a prayer that the OP be directed to return his cheques, issue No Due Certificate and pay Rs.50,000/- as compensation, besides paying Rs.5500/- as cost of litigation.

8]             The details submitted by the OP is a Statement of Account from 29-06-2004 to 29-06-2010.  This statement clearly reveals 31 installments under the column of Increased By and 31 installments under the column of Decreased By. What would this Increased by & Deceased by means.  Besides this the over due and pending charges have also been mentioned. 

                It is very interesting that the complainant has approached the OP for availing loan for purchase of HP laptop on 29.10.2007 but his Loan Account Statement started from 29.6.2004 even though his first installment became due on 15.12.2007.   It appears that the OP itself does not know as to how much amount was charged; how much amount became due/over due and how much amount was paid by the complainant.  The account statement so submitted by the OP does not mention the payment of 13 installment in cash as on 21.10.2008.  As per Page No.6 (total 8 pages) of the account statement 11 entries have been shown of one date i.e. 20.11.2009 against which the payable amount as Increased By is mentioned as Rs.1,795/- and against the same column under the head of Decreased By the same amount of Rs.1,795/- has been mentioned leading to total confusion as to what is due and what has been paid.  Has this document been prepared by the OP just to defeat the case of the complainant. 

9]             What can be inferred from the facts & circumstances of the case is that the OP is unnecessarily showing an overdue balance against the complainant and has wrongly presented ECS cheques in the account of complainant due to which the complainant was penalized with Rs.200/- by his banker’s.  The complainant is also aggrieved because  his name has been entered in the list of CIBIL as  a defaulter and NOC has not yet been issued to him by the OP.

10]            These actions of the OP are a definite situation of unfair trade practice especially when they are not able to show the clear picture of the payments made to them.  Even though the amount involved is very small i.e. Rs.200/- penalty charges, but the harassment & humiliation faced by the complainant is immense because his name figured in the list of defaulter of CIBIL and therefore, he was denied a motorcycle loan by HDFC Bank. 

11]            In view of above discussion, we sympathise with and appreciate the sentiments of the complainant and hence allow this complaint in favour of the complainant with the following directions to the OPs:-

i)    To refund Rs.200/- to the complainant, which has been deducted from his account due to wrong presentation of ECS mandate/cheque by the OP.

ii)  To issue No Due Certificate to the complainant.

iii) To pay Rs.5000/- to the complainant towards compensation as well as cost of litigation.

iv) To take steps/write letter(s) for removing the name of the complainant from CIBIL.  

                     The aforesaid order be complied with by the OPs,  within a period of 30 days from the receipt of its certified copy, failing which the OP shall pay the amount of Rs.5200/- along with interest @12% per annum from the date of this order till the date of realization. 

                Certified copy of this order be communicated to the parties, free of charge. After compliance, the file be consigned to the record room.

Announced

06.05.2011                                                                               

(LAKSHMAN SHARMA)

PRESIDENT

                                                           (ASHOK RAJ BHANDARI)

MEMBER

 (MADHU MUTNEJA)

MEMBER