Kerala

Idukki

CC/50/2019

Sulfath Salim - Complainant(s)

Versus

Mahindra and mahindra Financial Services - Opp.Party(s)

26 Dec 2019

ORDER

DATE OF FILING : 01/03/2019

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 26^th day of December 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT.ASAMOL P. MEMBER

CC NO. 50/2019

Between

Complainant : Sulfath Salim,

Karinbanackal House,

Mundiyeruma, Kallar – 685 552.

 

And

Opposite Party : 1 . The Manager,

Mahindra & Mahindra Financial Services Limited,

1^st Floor, Sehiyon Plaza, Erattayar Road,

Kattappana – 685 508.

2 . The Corporate Manager,

Mahindra & Mahindra Financial Services,

Corporate Office, Mahindra Towers,

Dr.G.M.Bo Alt Worli, Mumbai 400 018.

(Both by Adv: Saji Augustine)

 

O R D E R

SRI. S. GOPAKUMAR (PRESIDENT)

 

The case of the complainant is that,

 

Complainant availed a vehicle loan of Rs.4 Lakhs from the first opposite party on 14/10/16 agreed to repay it with interest in 48 monthly installments. Complainant remitted 13 installments in the loan regularly. Thereafter she failed to remit the further loan installments properly. While so, complainant received a notice from the first opposite party on 17/09/18 demanded her to remit the loan due of Rs.1,25,600/-. Thereafter she received a legal notice on 01/02/19 from the opposite parties demanding Rs.1,88,400/- as loan dues. Complainant further averred that in this case opposite parties calculated exorbitant amount by way of penal interest and other hidden charges. This is against the prevailing norms of

(Cont.....2)

-2-

 

RBI. The act of the opposite parties amounts to gross deficiency in their service as well as unfair trade practice. Hence against this act of the opposite parties, complainant filed this petition seeking relief such as to direct the opposite parties to permit the complainant to remit the loan dues by deducting the penal interest and other charges.

 

Upon notice opposite parties entered appearance and filed detailed reply version by admitting the disbursement of the loan amount and its repayment. Opposite parties further contented that as per the terms of loan agreement opposite parties are entitled to charge 3% penal interest monthly for the defaulted amount. The National Commission had ruled that the company is entitled to charge penal interest for the defaulted amounts. The complainant is not entitle for any relief.

 

Evidence adduced by the complainant by way of proof affidavit and documents. Complainant was examined as PW1. Ext.P1 to Ext.P3 were marked. Ext.P1 is the receipt dated 31/03/17, Ext.P2 is the notice dated 17/09/18, Ext.P3 is the notice dated 01/02/19.

 

From the opposite parties side opposite parties produced loan account statement and it is marked as Ext.R1.

 

Heard both sides,

 

The point that arose for consideration is whether there is any deficiency in service from the part of opposite parties, and if so, for what relief the complainant is entitled to ?

 

The Point:- We have heard the counsels for both parties and had perused the documents. It is an admitted fact that the complainant availed a vehicle loan of Rs.4 Lakhs from the first opposite party, agreed to repay it along with interest in 48 EMI's. She remitted some installments regularly but failed to remit some installments regularly. Hence the opposite parties charged penal interest in

 

(Cont.....3)

 

-3-

 

defaulted installments. On 17/09/18 complainant received a notice from the first opposite party demanding her to pay Rs.1,25,600/- as loan dues. Within 4 months the complainant received a legal notice from the opposite parties demanding an amount of Rs.1,88,400/- as loan dues.

 

The learned counsel for the complainant argued that within a gap of 4 months there is an increase of 62,800/- in the loan due. Thus itself shows that, the opposite parties bank calculating a very huge amount by way of penal interest irrespective of the direction of RBI. This act of the opposite parties bank is gross deficiency in service. On the other hand the learned counsel for the opposite parties vehemently argued that, complainant is bound to pay interest as per the loan agreement. Opposite parties is legally entitled to recover and charge penal interest in addition to the normal interest in defaulted installments. Hence no question of any deficiency in service arises.

 

On perusing the document including Ext.R1 loan statement of account, it is found that the complainant is a defaulter and opposite parties charged penal interest in defaulted EMI's. But opposite parties failed to convince the Forum that under what norms they charged such a huge amount by way of penal interest and what is its percentage. Except Ext.R1 loan statement of account no evidence is adduced by the opposite parties to strengthen their plea.

 

On the basis of above discussion Forum is of a considered view that the penal interest which is calculated and added in to the loan account by the opposite parties having no legal footing and cannot be admissible. Hence the complaint allowed in part. Opposite parties are directed to calculate additional interest @ 12% per annum to the defaulted installments and issue a statement of account with this calculation within 30 days from the date of receipt of the copy of this order, if the complainant received such a statement from the opposite parties, he is directed to remit the defaulted installments in lump sum within one month from the date of receipt of the statement of account as discussed above.

 

 

(Cont.....4)

 

-4-

 

If the complainant is remitted the default installments as directed, the opposite parties are directed to re-schedule the loan further installments. No order to cost or compensation.

 

Pronounced in the Open Forum on this the 26^th day of December, 2019.

 

Sd/-

SRI. S. GOPAKUMAR (PRESIDENT)

Sd/-

SMT. ASAMOL P. (MEMBER)

 

APPENDIX

 

Depositions :

On the side of the Complainant :

PW1 -Sulfath Salim

On the side of the Opposite Party :

Nil

Exhibits :

On the side of the Complainant :

Ext.P1 - The receipt dated 31/03/17

Ext.P2 - The notice dated 17/09/18

Ext.P3 -The notice dated 01/02/19

On the side of the Opposite Party :

Ext.R1 - Loan account statement

 

Forwarded by Order,

 

SENIOR SUPERINTENDENT