By Smt. Saji Mathew, Member:

The gist of the case is as follows:- The Complainant has availed a loan from the 1^st Opposite Party pledging his vehicle No. KL 12/5331. The loan was endorsed in the R.C Book of the vehicle.

2. The Complainant has paid the entire loan amount and requested the 1^st Opposite Party for loan clearance papers. The 1^st Opposite Party refused to issue loan clearance papers saying that there is some disputes with the local agent who has arranged this loan. The 1^st Oppose Party has not issued the no objection certificate till this date. The Complainant could not renew the permit in the absence of no objection certificate from the 1^st Opposite Party. The peaceful enjoyment of the vehicle is restricted by the deficiency in service on the side of the Oppose Party. Therefore the Complainant prays for an order directing the 1^st Opposite Party to issue no objection certificate for the cancellation of loan endorsement in the R.C of the vehicle No. KL 12/5331 and to pay a compensation of Rs.50,000/-. The Complainant also prays for a direction to the 2^nd Opposite Party to cancel the loan endorsement in the R.C of vehicle No. KL 12 5331 and to renew the permit of the vehicle without any fine or late fee.

3. The 1^st Opposite Party filed version and admitted the loan agreement with the Complainant. The agreement period was from 21.1.2005 to 21.6.2007. The Complainant had paid only 25 instalments by the date 21.6.2007. He had paid 28 instalments by 24.12.2007, the last date he paid any payment. Rs.500 towards the 29^th instalment and the entire 30^th instalment making a total of Rs.4,400/- is yet to be paid towards the loan amount. Besides, the Complainant was a chronic defaulter in paying the instalments and towards the penal charges he has to pay an amount of Rs.32,550/-. A total amount of Rs.36,950/- is yet to be paid by the Complainant to the 1^st Opposite Party. For this reason, No Objection Certificate is not issued to the Complainant. There is no deficiency in service on the side of the 1^st Opposite Party. The 1^st Opposite Party prays for an order dismissing the complaint.

4. The Complainant filed proof affidavit and documents were marked as Exts.A1 to A5 on the side of the Complainant. 1^st Opposite Party was examined as OPW1 and documents were marked as Exts.B1 to B3 on the side of the 1^st Opposite Party. 2^nd Opposite Party adduced no evidence.

5. The matters to be decided in this case are:-

1. Whether there is any deficiency in service on the side of the Opposite Party?

2. Whether the Complainant is entitled for any relief?

6. Point No.1:- Ext.A3 series shows payment of total Rs.1,39,600/-. As per Ext.B2, the termination date of loan agreement is 21.6.2007. By this date as per Ext.B2 Rs.1,34,600/- is paid. Agreement balance is Rs.4,400/-. Penal interest is seen calculated even during the agreement period. The Opposite Party is entitled to collect any penal interest only after the due date of last instalment. (2008 CPJ N.C P-40 in Ashok Leyland Finance Ltd. V. Ramjilal Gupta) Hence there is deficiency in service on the side of the Opposite Parties.

7. Point No.2:- The due amount as on 21.06.2007 is Rs.4,400/-. As per Ext.A3 series the Complainant has paid Rs.11,700/- by 12/07 ie, more than double the due amount. So, the Complainant is entitled to get relief.

8. Hence, the complaint is partly allowed and 1^st Opposite Party is directed to issue no objection certificate for the cancellation of loan endorsement in the R.C of vehicle KL 12 5331 within 30 days of the receipt of this order.

In case where NOC is not issued by 1^st Opposite Party, 2^nd Opposite Party is directed to cancel the loan endorsement in the R.C of vehicle KL 12 5331 and to renew the permit even in the absence of NOC from the financier on application by the complainant with necessary fees and other formalities prescribed by law.

Pronounced in open Forum on this the day of 31^st August 2010.

Date of filing: 28/05/2010.

PRESIDENT: Sd/-

MEMBER : Sd/-

MEMBER : Sd/-

A P P E N D I X

Witness for the Complainant:

Nil.

Witness for the Opposite Parties:

OPW1. Haridas. Agriculture.

Exhibits for the Complainant:

A1. Copy of Certificate of Registration.

A2. Copy of Permit in respect of a contract carriage. dt:20.1.2005.

A3 series. Receipts.

A4. Application for Renewal of Permit. dt:19.01.2010.

A5. Copy of Driving Licence.

Exhibits for the Opposite Parties:

B1 series. Copy of Hire Purchase Agreement.

B2. Copy of Statement. dt:28.07.2010.

B3. Copy of Power of Attorney.