By G. Yadunadhan, President:

            The case of the complainant is that he had purchased a Zen Diesel Motor Car from M/s. Popular Vehicles and Services Ltd., Kozhikode.  The opposite party, who had a tie up with M/s. Popular Vehicles and Services Ltd. at the relevant time, had arranged finance for purchase of the vehicle from the office of M/s. Popular Vehicles and Services Ltd.  The opposite party had sanctioned a loan under loan agreement No.1024661 dated 31.1.2003 in favour of the complainant.  In accordance with the scheme of finance, after receiving the price from the opposite party, M/s. Popular Vehicles and Services Ltd.  delivered the vehicle to the complainant, which is subsequently registered under registration No. KL.18/2601.  As per the agreement, the vehicle was registered subject to the hire purchase agreement with the opposite party.  As per stipulation in the agreement, the complainant had handed over post dated cheques covering monthly instalments of Rs.9250/- to the opposite party.  Complainant had issued two cheques dated 20.10.2003 and 20.11.2003 for Rs.9250/- each on his account with Kozhikode District Co-operative Bank Ltd., Orkatteri Branch.  It had become necessary for the complainant to close the said account and the complainant had promptly informed the Kochi Office of the opposite party that the said two cheques likely to be returned and he had also offered substitution of the cheques in question or payment by draft.  The Kochi office of the opposite party had then informed the complainant that they are unable to help him for the reason that the cheques are retained at the Head office.  Before the complainant could appropriately take up with the Head office of opposite party the cheques had fallen due.  The said cheques were returned by the Bank in question for the reason that the complainant had closed the account.  The opposite party issued a letter dated 29.12.2003 to the complainant informing him of the dishonour of the said cheques and immediately the complainant had made payment of the amounts covered by the said two cheques by Demand Draft No. 767681 dated 2.1.2004 drawn on Canara Bank, Ernakulam.  Complainant submits that except for the said instance, every cheque issued by the complainant had been honoured at the time of presentment.  Opposite party had informed that Rs.500/- would be charged for each cheque returned and a penal interest of three per cent per month will be charged for every delayed payment.  Applying the said rates, the dishonour of the two cheques in question should only entail Rs.1,000/- towards cheque return and Rs.830/- towards penal interest.  Complainant had also expressed his readiness and willingness to pay the aforesaid sum of Rs.1830/- towards cheque return charges and penal interest.  Complainant had requested the opposite party to receive the aforesaid sum of Rs.1830/- and to issue a No Objection Certificate.  Complainant desires to sell the vehicle and purchase a new vehicle.  But he is unable to effect the sale for want of the No Objection Certificate for cancellation of the endorsement of Hire purchase in the Registration certificate in respect of the vehicle.  Therefore the opposite party is liable to issue No Objection Certificate for cancellation of the endorsement of Hire Purchase in the Registration Certificate in respect of the vehicle and refusal to do so in spite of demand amounts to unfair trade practice and deficiency of service on the part of the opposite party.

            Opposite party after serving notice called absent and set exparte. 

Complainant was examined as PW1, filed affidavit and Ext. A1 to A9 were marked. 

From the affidavit and Ext. A1 to A9, complainant’s case is proved. 

            Therefore, petition is allowed and the opposite party is directed to issue No Objection Certificate for the cancellation of the endorsement of Hire Purchase in the Registration Certificate in respect of vehicle No. KL.18/2601, after receiving Rs.1830/- from the complainant and also to pay a compensation of Rs.5000/- to the complainant.

            Pronounced in open Court this the 23^rdday of January 2009.

                                                Sd/- President                                  Sd/-Member

APPENDIX

Documents exhibited for the complainant:

A1        Letter dated 29.12.2003 from opposite party to the complainant.

A2            Photocopy of cheque No.767681 dated 2.1.04 for Rs.18500/-.

A3        Courier Service receipt dated 2.1.2004.

A4            Statement dated 14.6.2006 showing due of Rs.4604/- from opposite party to the complainant.

A5            Photocopy of letter from complainant to the opposite party along with postal

            Acknowledgement and postal receipt.

A6            Statement dated 25.9.2006 showing overdue charges of loan from opposite party to complainant.

A7            Statement dated 12.10.2006 showing overdue charges of loan from opposite party to the complainant.

A8            Photocopy of letter dated 30.10.2006 from the complainant to opposite party.

A9            Statement dated 02.01.2007 from opposite party to complainant.

Documents exhibited for the opposite party:

Nil.

Witness examined for the complainant:

PW1            Radhakrishnan.P., S/o. V. Gopalakurup – complainant.

Witness examined for the opposite party

None.

-/True copy/-

Sd/-President

(Forwarded/By Order)

Senior Superintendent.