F.A.No.1605/2006  against C.C.No.439/2006, Dist. Forum-II,Hyderabad. . 

Between:

G.Vijay Kumar,

S/o.Late G.Madhusudhan Rao,

Aged 50 years, Occ:Service,

R/o.12-10-250, Seethaphalmandi,

Secunderabad.                                                    …Appellant /

                                                                          Complainant

    And

GE Countrywide Consumer Financial Services

Limited, rep. by its Manager, situated at

103 & 105, Ashok Bhoopal Chambers,

Sardarpatel Road Secunderabad -3.                          … Respondent/

                                                                              Opp.party    

Counsel for the Appellant          :      Sri G.Ravichandran

Counsel for the Respondent       :

CORAM : SMT. M.SHREESHA, HON’BLE MEMBER

AND

SRI K.SATYANAND , HON’BLE MEMBER

MONDAY, THE SEVENTEENTH DAY OF AUGUST,

                                TWO THOUSAND NINE. 

Oral Order (Per  Smt M.Shreesha, Hon’ble Member)

                                           ***

Aggrieved by the order in C.C.No.439/2006  on the file of District Forum-II, Hyderabad the complainant preferred this appeal.

        The brief facts as set out in the complaint are that the complainant obtained consumer loan  from the opposite party  which was sanctioned on 31.7.2004   for Rs.65,000/-  and monthly instalment of EMI amount was fixed at Rs.3,544/-   and period of the loan was 36 months commencing from 7.8.2004 and ending by 7.7.2007.  The complainant gave post dated cheques and cheques were being regularly honoured.  The complainant submits that when the bank did not honour some of his cheques he immediately paid the amounts and requested opposite party and their agent to return the  unused cheques  and requested them that he would substitute  the cheques of ICICI  bank with that of SBH , Secunderabad  and though inspite of agreeing to substitution, opposite party never came forward inspite of various requests by the complainant and instead went on depositing the cheques and got them dishonoured.   Even before the instalments period came to  an end, the opposite party got issued legal notice dt.13.3.2006  demanding the complainant to pay  Rs.69,663/- and the complainant submits that his loan sanctioned was only Rs.65,000/- and by 7.7.2007 he paid Rs.1,27,584/-. Thereafter  he issued  a reply notice  on 20.3.2006  informing the opposite party that he paid more than the required amount but the opposite party did not issue any statement of account,  inspite of repeated  requests. Vexed with their attitude  the complainant approached the Forum seeking direction to the opposite party to   furnish clear details of the actual amount due by him  and to substitute the ICICI bank cheques by returning  them back to complainant and to receive cheques of SBH, Secunderabad and to award  compensation of Rs.10,000/- for mental agony , to pay costs of Rs.2000/-.

        The opposite party filed counter stating that the cheques issued by the complainant got bounced twice and the complainant never bothered to clear them.  Thereafter as per the terms and conditions of the loan agreement,   the opposite party issued two legal notices but never received any reply from the complainant  and the opposite party has every right to collect interest and other penal charges as per the terms and conditions of the loan agreement. The opposite party submits that  there was no deficiency in service on their part and prayed to dismiss the complaint .

        The District Forum based on the evidence  adduced i.e. Exs.A1 to A4 documents and pleadings put forward dismissed the complaint .

        Aggrieved by the said order, the  complainant preferred this appeal. 

        The learned counsel for the appellant/complainant submitted that the opposite party did not file any statement of account showing that how the amount arrived at and even before the  said expiry  period, i.e. 7.7.2007 the opposite party  demanded  huge amounts when he has already paid more than the principal amount. 

        The appellant also filed his written arguments.

        On perusal of material on record  we have noticed that through  Exs.A3   and A4   legal notices,  opposite party  demanded  the complainant to pay Rs.1,06,295/- and also informed that  on non payment of outstanding amount they would initiate criminal action .  The complainant  issued reply to the  notice of opposite party stating that  that he  is ready to issue fresh cheques in view of cheques issued by ICICI Bank and as per the fixation of instalments the last instalment payable by his client was 7.7.2007.   Ex.A4 is   the demand notice dt.13.3.2006 issued by the opposite party  that the complainant is still due Rs.69,663/-.  It is pertinent to note that in Ex.A4  the outstanding amount  recorded was Rs.69,663/.-  as on 1.3.2006 and immediately two months thereafter as on 1.5.2006 outstanding amount stood to be Rs.1,06,295/-  as per Ex.A3 dt. 12.5.2006   Ex.A1 clearly states that the period of loan starting   date is   7.8.2004 and  ending date is  7.7.2007.  There is absolutely no explanation forthcoming   from the opposite party as how in the matter of two months  the outstanding amount  demanded by them  escalated from  Rs.69,663/- to Rs.1,06,295/- when absolutely there is no statement of account furnished by them in support of their demand.   When the loan instalment period  was to be  completed on 7.7.2007,  the act of the opposite party  in demanding these amounts without explaining clearly the  statement of account, amounts to deficiency in service.  When the opposite party in his counter submitted that the complainant was given a loan of Rs.65,000/- and Ex.A1 clearly proves that EMI amount  was Rs.3,544/-  and the complainant  has also admittedly requested  the opposite parties to substitute  his ICICI Bank cheques  with that of the cheque of SBH , Secunderabad  the  act of  the opposite party  in not even giving  any explanation as to how in  a period  of two months i.e. 1.3.2006 to 1.5.2006 the amount has increased from Rs.69,663/- to  Rs.1,06,295/-,  the opposite party committed deficiency in service, for which we  direct the opposite party to furnish clearly the  details of actual amount due  by the complainant under his account and substitute the ICICI Bank cheques  with that of  SBH, Secunderabad  Cheques and we also award compensation of Rs.10,000/- for the mental agony suffered by the complainant together  with costs of Rs.1000/-.

        In the result this appeal is allowed and  subsequently the complaint is also allowed directing the opposite party to give a detailed statement of account with respect to the complainant‘s account charging interest rates as per RBI guidelines, substitute the complainant’s ICICI Bank cheques with those  of SBH cheques, Secunderabad and also pay Rs.10,000/- towards compensation and Rs.1000/- towards costs.  Orders are to be complied within four weeks from the date of receipt of this order.  

                                                                                                                                                                 MEMBER

                                                                 MEMBER

                                                                Dt.17.8.2009