By Sri. Chandran Alathery, Member:-
The complaint is filed under section 12 of the Consumer Protection Act of 1986 for an order directing the Opposite Party No.1 to close the loan account with the Complainant and take steps to cancel the hypothecation endorsement with R.C book and to return necessary documents and to pay Rs.50,000/- as compensation and to pay the cost of the proceedings failing which Opposite Party No.2 may be directed to cancel hire purchase endorsement in the registration certificate.
2. The Complainant's case in brief as follows:- The Complainant is the R.C Owner of the vehicle, car bearing No.KL12/D/2791. He availed vehicle loan over his the vehicle from 1st Opposite Party. The total loan availed including financial charges was Rs.3,80,991/- as per loan agreement. At the time of loan, the Opposite Party got the signature of Complainant in loan agreement and collected blank signed cheques, pronotes and bonds with blank papers etc. The repayment was fixed in 60 instalments starts from 02.04.2008 and ending on 02.03.2013. The monthly installment amount is fixed as Rs.6,420/-. The Complainant registered the vehicle with Opposite Party No.2. The Opposite Party No.1 collected the original R.C along with duplicate key of the vehicle from the Complainant. Before 01.04.2013 the Complainant had repaid the entire loan amount and demanded the Opposite Party No.1 to issue no objection certificate for cancellation of hypothecation endorsement in the R.C Book. The Opposite Party No.1 did not issue NOC but demanded exorbitant amount as additional charge to close the loan account. Aggrieved by this , the Complainant preferred this complaint before the Forum.
3. On receipt of complaint, notices were issued to the Opposite Parties and the Opposite Party No.1 did not appear in Forum even after getting notice. The Opposite Party No.2 appeared before the Forum and filed version. The Opposite Party No.1 is set exparte on 20.12.2013. The Opposite Party No.2 filed version to the effect that they did not receive any application for cancellation of hypothecation endorsement in the R.C Book as per rules. The Complainant filed proof affidavit and is examined as PW1 and Ext.A1 to A4 is marked. On verifying the complaint, affidavit and documents the forum raised the following points for consideration.
1. Whether there is deficiency of service on the part of Opposite Parties?
2. What order as to cost and compensation?
4. Point No.1:- In addition to complaint, the complainant produced proof affidavit and documents to prove the case. The documents are marked as Exts.A1 to A4. Ext.A1 is the photocopy of R.C bearing register No.KL12 D 2791 of wagon R Car. Ext.A2 is the photocopy of instalment repayment chart issued by the 1st Opposite party to the Complainant. Ext.A3 is the receipt issued by the 1st Opposite Party to the Complainant. Ext.A4 is the authorisation letter given to Mr.Tony V. Joseph by the Complainant to give evidence before the Forum. The Complainant filed Exts.A1 to A4 documents to prove his case. The 1st Opposite Party is exparte in this case. It is up to this 1st Opposite Party to deny the allegations raised by the Complainant. Now the evidence of the Complainant is unchallanged. The 2nd Opposite Party in this case did not have much role till an application is received with NOC from financier to cancel the hypothecation. That is not done in this case. The Complainant filed affidavit stating that he had remitted back the entire loan amount within the specified time ie before 01.04.2013. Even if the Complainant did not produce the repayment receipts before the Forum, the Forum accepted the affidavit of the Complainant to that effect. There is absolutely no deficiency of service on the part of the opposite Party No.2. But the Forum found that there is deficiency of service from the part of Opposite Party No.1 in dealing with the loan transaction with the Complainant. Since there is deficiency of service from the part of Opposite Party No.1, the Complainant is entitled get the remedies as prayed for and Opposite Party No.1 is liable to compensate the same. So point No.1 is found in favour of Complainant.
5. Point No.2:- Since the point No.1 is found against the Opposite party No.1, the Complainant is entitled to get the cost and compensation.
In the result, the complaint is partly allowed and the Opposite party No.1 is directed to issue No Objection Certificate to the Complainant after closing his loan account in order to cancel the endorsement of hypothecation in the R.C Book and to return the original R.C book of vehicle bearing register No.KL 12 D 2791, duplicate key, unfilled pronotes and bonds with blank papers and blank signed cheques. The Opposite Party No.1 is also directed to pay Rs.5,000/- (Rupees Five thousand) only towards compensation and Rs.1,000/- (Rupees One thousand) only towards cost of the proceedings. If the Opposite Party No.1 is not complying this order within 30 days of the receipt of this order. The Complainant shall take necessary steps to get the duplicate Registration Certificate from the Regional Transport Officer and the Opposite Party No.2 is directed make arrangement to issue duplicate Registration Certificate after canceling the hire purchase endorsement on it.
Dictated to the Confidential Assistant transcribed by him and corrected by me and pronounced by me in the open Forum on the 28th day of March 2014.
Date of filing:19.09.2013.
PRESIDENT: Sd/-
MEMBER : Sd/-
MEMBER : Sd/-
/True copy/
Sd/-
PRESIDENT, CDRF, WAYANAD.
A P P E N D I X
Witness for the Complainant:
PW1. Tomy V. Joseph. Complainant
Witness for the Opposite Parties:
Nil
Exhibits for the Complainant:
A1. Copy of Registration Certificate.
A2. Copy of Repayment Schedule. Dt:30.03.2013.
A3. Receipt.
A4. Copy of Authorization Letter. Dt:11.04.2013.
Exhibits for the Opposite Parties:
Nil.
