By: Smt. E. Ayishakutty, Member.
Complainant is the R.C owner of the vehicle KL08-AE-4707 with effect from 10/3/08. He availed a loan of Rs. 5,74,300/- from opposite party to purchase this vehicle on 30/4/08. Complainant executed a loan agreement with opposite party to this purpose and the hire purchase was endorsed in the Registration Certificate of the vehicle on 22/4/08 with effect from 14/4/08 by the R.T.A Malappuram. Complainant had paid 12 installments of Rs. 22,100/- for each amounting Rs. 2,65,200/- as on 3/3/2010. He also had paid Rs.2300/- to opposite party on 30/1/09 complainant defaulted in payment of a few monthly installments due to some financial crisis. Mean while opposite party filed a petition before District Court Kozhikode as OP NO 35/10. Then complainant had paid Rs. 2,42,800/- to opposite party on 31/3/2010 to release the said vehicle from the case of opposite party and he withdrawn the case from the court. Complainant had paid 5,10,300/- in total towards the loan of Rs.5,74,300/- as on 31/3/2010. But opposite party demanded a huge amount of additional hire charge, incidental charge, fine etc. Therefore he decided to close the entire loan amount before maturity period and this he approached opposite party for several times by demanding the closing figure of the loan in writing. But opposite party orally demanded Rs. 2,70,000/- as on 15/5/2010 including huge amount towards default interest, premature closing fine, additional hire charges etc. More over opposite party threatened the complainant that he will seize the vehicle by using gundas. He is ready to pay the balance amount with reasonable interest but opposite party has not ready to accept the amount and issue the hire purchase termination letter to cancel the hire purchase endorsement from the R.C Hence he filed this complaint before the Forum alleging deficiency of service on the part of opposite party.
Complainant prays to direct opposite party to issue the No Objection Certificate and hire purchase termination letter of the vehicle KL-08- AE- 4707 to cancel the hire purchase endorsement from the R.C of the vehicle infavore of opposite party. He also prays compensation Rs. 10,000/- along with cost of Rs. 10,000/- for the litigation.
Opposite party filed version. He denies all the allegations and averments of the complainant except those which specifically admitted. He submits that the alleged transaction is thoroughly commercial in nature and as such does-not fall with in the scope and purview of Consumer Protection Act. He further submits that complainant had himself approached opposite party for a financial assistance for the purpose of purchasing the vehicle KL-08-AE 4707 and opposite party granted the loan to the tune of Rs. 6,00,000/- vide loan com hypothecation bearing NO 500280057 executed on 30/4/08. As per the mutual understanding between opposite party and complainant, he was bound to pay the entire loan amount along with interest by way of equal monthly installments. He states that opposite party had never wanted any copy of any original tittle deed from the complainant as alleged. He also had not taken any blank Cheque, signed stamp papers etc. from the complainant as alleged. Opposite party further submits that all the documents pertaining to the loan transaction were duly handed over to the complainant.As per the agreed conditions in the agreement and hypothcation documents the complainant must pay Rs. 23,700/- as first installment and Rs.22,100/- for the balance 33 installments. As per loan -cum- hypothecation agreement the entire amount of Rs.7,53,000/- is to be paid on the date stipulated in the agreement. Opposite party admits the statement of complainant in the complaint that OP 35/2010 (Arbitration) was filed by him and it was settled on mutual oral understanding. He further admitted that the entire dues will be paid thereafter and the case was settled on humanitarian grounds. He denied that complainant has paid the entire loan amount with interest as alleged. He submits that as on 7/9/2010 complainant has paid only 23 installments towards the partial payment of the loan amount as such he is liable to pay the remaining overdue installments along with over due charges. Opposite party denied the allegation of the complainant that he demanded the loan termination letter from opposite party and the averments of complainant that he had paid Rs. 5,10,300/- out of Rs. 5,74,300/- is incorrect and denied by him. Complainant remitted only 23 installments and 11 installments are due. The amount payable is liable to be paid on maturity date ie 2/2/2011 as agreed by the complainant with all amounts agreed to be paid. Hence the complainant is devoid of merits and it is only to be dismissed with compensatory cost of opposite party. Complainant filed affidavit with documents as evidence for his case. Ext. A1 to Ext.A5 marked on the side of him. Opposite party filed counter affidavit. Ext. B1 to B3 marked on behalf of him. No oral evidence aduced both sides. No notes of arguments filed both sides.
Points for consideration
i Whether opposite party is deficient in his service.
ii If so what is the relief and costs.
The case of the complainant is that he had paid Rs. 5,10,800/- towards loan of Rs. 5,74,300/- but opposite party demands huge amount as additional interest, incidental payment, fine etc. from him. He is ready to pay the balance amount with reasonable interest . But opposite party did not ready to accept the amount and issue the termination letter of the alleged vehicle. So he filed this complainant But opposite party denies the allegation of complainant. He states that he had financed Rs. 6 Lakh as per agreement executed between complainant and opposite party on 30/4/08. He had to repay the loan Rs. 7.53,000/- including interest Rs. 1,53,000/- for three years. The repayment started from 30/4/08 to 2/2/11 as 34 monthly installments, First installment was Rs. 23,700/- and the remaining 33 installments were 22,100/- each month. Complainant has paid 23 installments only out of 34 installments till the date of 2/2/11. Complainant states that he has paid Rs. 5,10,300 /- towards the loan amount till the date of 2/2/11. As per Ext B2 the contract details issued by opposite party shows that complainant had paid Rs. 5,16,358 in total towards the loan amount. But Ext A3 the repayment details issued by opposite party shows that complainant had paid Rs. 2,88,100/- as on 3/3/2010 and Ext A4 and A5 the payment receipt shows he had paid Rs.2,42,800/- on 31/3/2010. So as per documents ExtA3,A4,A5 complainant had paid Rs. 5,30,900/- as on 31/3/2010. So the remaining balance out of 7,53,000/- is Rs.2,22,100 on 1-4-2010 onwards. Complainant states that he was ready to close the loan before the maturity period but opposite party demanded huge amount including premature closing fine etc as on 15/5/2010. The last date to the payment was 2/2/11. The interest for the loan was calculated in total basis. So opposite party is not liable to get additional finance charge with in the stipulated period. But as per ExtB2 the account statement of the loan shows that many cheques were returned due to insufficient balance in the account of complainant. It caused additional expense to opposite party for collecting the loan amount from him. Hence the complainant is liable to pay the outstanding expense of Rs. 21,400/- along with the overdue installments amount Rs. 2,22,100/-. Hence we hold that complainant is liable to pay Rs.2,43,500/- in total to opposite party. On payment this amount opposite party is liable to issue the no objection certificate and Hire purchase termination letter to the complainant to cancel hire purchase endorsement from the R.C of the vehicle KL-08-AE-4707.
In the result complaint is partly allowed and we direct the complainant to pay Rs. 2,43,500/-( Two lakhs, forty three thousand and five hundred only) to the opposite party with in three weeks from the date of receipt copy of this order. On receipt of the payment opposite party is directed to issue the No Objection Certificate and Hire purchase termination letter to the complainant to cancel the hire purchase endorsement from the Registration Certificate of the vehicle KL-08-AE 4707 in favour of opposite party. The order shall comply with in one month from the dated of receipt of copy of this order. Failing which on request of the complainant, communicate a copy of this order to the Regional Transport Officer Malappuram who will cancel the hire purchase endorsement from the R.C of the above said vehicle infavour of opposite party. No order as to cost and compensation
Dated this 23th day of April 2012
C.S.SULEKHA BEEVI, PRESIDENT
MOHAMMED MUSTHAF KOOTHRADAN,
MEMBER E. AYISHAKUTTY, MEMBER
APPENDIX
Witness examined on the side of the complainant : Nil
Documents marked on the side of the complainant : Ext.A1 to A5
Ext.A1 : Registration particulars of the the vehicle KL-08-AE-4707.
Ext.A2 : Copy of the demand draft Rs.5,74,300/-.
ExtA3 : Repayment details dated 31-03-2010.
ExtA4 : Copy of payment receipt dated 31-03-2010,Rs.2,21,800/-
ExtA5 : Copy of payment receipt dated 31-03-2010,Rs.21,000/-
Witness examined on the side of the opposite party : Nil
Documents marked on the side of the opposite party : ExtB1 to B3
Ext B1 : Copy of loan agreement
ExtB2 : Copy of contract details.
ExtB3 : Copy of the order of Arbitration award.
C.S. SULEKHA BEEVI, PRESIDENT
MOHAMMED MUSTAFA KOOTHRADAN,
MEMBER E. AYISHAKUTTY, MEMBER
