C.C. No.123/2024

Sanjib Kumar Jena,

S/o. Late Digamber Jena,

A-V.T. Centre Road,

P.O.- Tulasipur,

P.S.- Cuttack Sadar,

Dist.- Cuttack- 753008,

At Present- C/o. Prasanta Singh,

At- Markandapur (Gopalsagar),

P.O./P.S./Dist.- Jagatsinghpur.……… Complainant

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1. M.D., Cholamandalam Investment & Finance Co. Ltd.,

Corporate Office at: Dare House,

Chennai- 600001.

2. Branch Manager,

Cholamandalam Investment & Finance Co. Ltd.,

Srima Construction Building,

Nayachowk, Madhupatana,

Cuttack- 753010.

3. Branch Manager,

Cholamandalam Investment & Finance Co. Ltd.,

At- Bhaskar Complex,

Bijayachandrapur (Near IFFCO Chhack),

P.O./P.S.- Paradeep,

Dist.- Jagatsinghpur.

4. R.T.O., Cuttack,

At/P.O./Dist.- Cuttack.                                       …..… Opposite parties                 

For Complainant………..Mr. B.M. Sarangi, Advocate

For O.P. No.1 to 3………..Mr. M.C. Swain, Advocate

ORDER BY HON’BLE PRESIDENT- MR. P.K. PADHI:

                                                                                            JUDGMENT

            Complainant has filed the consumer complaint U/s.35 of C.P. Act, 2019 seeking following relief;

            “Direct the opposite parties to release the vehicle bearing Regd. No.OD-05-AM-2009 in accordance with law and settlement of loan account in OTS scheme and pay compensation Rs.30,000/- towards loss of business Rs.50,000/- towards mental agony and Rs.20,000/- towards cost of litigation.”

            Brief fact of complainant is that, the complainant purchased a vehicle (Bus) bearing Regd. No.OD-05-AM-2009 being financed by opposite parties No.1 to 3. The complainant already paid Rs.26,45,471/- out of loan amount of Rs.30,02,996/- and balance is Rs.3,60,000/-. On 16.5.2024 the opposite party No.1 without notice forcibly seized the vehicle and complainant contacted the opposite party and interested to deposit all the installments, but the opposite party is not accepting the amount and not releasing the vehicle.

            Opposite parties No.1 to 3 have filed their written version stating as under;

              The complainant paid monthly EMIs irregularly so the opposite parties issued reference of dispute to arbitration notice dtd.15.02.2022. As the complainant did not pay the amount willfully in spite of several requests, the above matter was referred to the Learned Arbitrator for adjudication under section 21 of Arbitration and Conciliation Act 1996. Final award was passed on 12.8.2022 with respect to the hypothecated vehicle and thereby the Arbitrator directed the complainant to pay sum of Rs.25,41,778/- together with further interest thereon of the aforesaid amount to repossess the subject vehicle and sell the subject vehicle by public auction. As such the complaint is liable to be dismissed for want of cause of action as the arbitration final award was passed much before filing of the present consumer complaint with respect to the hypothecated vehicle.

            This Commission vide order dtd.06.7.2023 in C.C. No.128/2023 directed that complainant shall pay regular EMI with Rs.15,000/- per month but failed to pay the EMI and additional amount as directed by this Commission for which the opposite parties have repossessed the vehicle. We asked counsel for both the parties whether the procedure for repossession has been followed or not in repossessing the vehicle and it was submitted by both parties that the procedure for repossession has not been followed.  

            Since this Commission has already disposed of the earlier C.C. No.128/2023 directing to pay Rs.15,000/- in addition to EMI and the complainant failed for which the vehicle has been repossessed. It is settled position of law that opportunity should be given to consumer before repossession and procedure to be followed by financer.

            In normal course we would not have interfered in the matter but taking into account the interest of both parties we direct the complainant to pay 50% of pending EMIs + Rs.15,000/- as on the date of repossession including the amount deposited in shape of D.D. within 10 days from the date of passing of the order and the opposite parties shall release the vehicle bearing No.OD-05-AM-2009 within 3 days after receipt of the order. If the opposite parties fail to release the vehicle within 3 days after receipt of the 50% of pending amount till 16.5.2024 i.e. the date of repossession then opposite parties shall pay Rs.2,000/- per day to complainant after 3 days of receipt of amount/Draft/UPI/Electronic mode of payment.  

            We found that the agreement/contract period is up to 25.6.2026 and pending dues is around 8 lakhs up to 16.5.2026 out of which around 4 lakhs (for 2 loans) i.e. 50% of exact pending dues as on 16.5.2024 shall be paid by complainant.

After release of vehicle the complainant shall pay his regular EMI with additional Rs.20,000/- in each and every month on or before the date of payment of EMI. If the complainant fails to pay EMI with additional Rs.20,000/- for each day of delay in payment of EMI the complainant shall pay Rs.200/- per day in addition to EMI for each month  of defaulted EMI. With the aforesaid observation and direction the consumer complaint is disposed of. No cost.

            Pronounced in the open Commission on this 25^th October,2024.