Kerala

Idukki

CC/74/2017

Ajith Varghese - Complainant(s)

Versus

Mahindra and Mahindra Ltd - Opp.Party(s)

Adv.Sibi Thomas

27 Sep 2019

ORDER

DATE OF FILING : 12.4.2017

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 27^th day of September, 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT. ASAMOL. P MEMBER

CC NO.74/2017

Between

Complainant : Ajith Varghese,

Elavunkal House,

Marykulam, Ayyappankovil P.O., Idukki.

(By Adv: Sibi Thomas)

 

And

Opposite Party : Mahindra Finance,

1^st Floor,

Friends Building, K.P. 1/855,

Puliyanmala Road,

Kattappana, Idukki – 685 508.

(By Advs: Saji Augustine

& Vikraman Nair N.G.)

 

O R D E R

 

SRI. S. GOPAKUMAR, PRESIDENT

 

Case of the complainant is that :

 

Complainant availed a vehicle loan of Rs.4 lakhs from opposite party company on 13.3.2017for purchasing a Bolero Maxi Truck. The loan period is 48 months and loan period ends on 10.2.2017. At the time of purchase of the vehicle, it was insured with oriental insurance company, Thodupuzha through a full cover policy, on the instigation of the manager of opposite party company. Eventhough there is so many insurance company in Kattappana, very near to the complainant, he was forced to took this policy due to the direction of the above said manager.

 

While so, the vehicle met with an accident before registering it and was totally damaged and considered it as total damage. Due to the accident, complainant failed to remit the monthly instalment in the loan

(cont....2)

- 2 -

account. Eventhough the complainant submitted claim application, the insurance company repudiated it. Against this the complainant filed a petition before this Forum as CC No.256/2014 and obtained a decree in his favour, directing the opposite party company to pay Rs.4,09,900/- as damages along with 12% interest and Rs.5000/- as cost. Against this order, the insurance company preferred an appeal before the Hon'ble State Consumer Disputes Redressal Commission, as A.658/15 and it is pending there.

 

Now the opposite party is demanding a huge amount as loan dues and the complainant is in a position to pay the loan amount without getting the decreed amount from the insurance company. The opposite party issued notice to the complainant demanding for Rs.7 lakhs as loan dues and the opposite party threatened that they are initiating arbitration proceedings against the complainant. Under this circumstance, complainant approached this Forum alleging deficiency in service and unfair trade practice against the opposite party in demanding very huge amount by way of penal interest, over due charges etc. The complainant filed this petition by seeking relief such as to restrain the opposite party by imposing excess interest, overdue charges and other incidental charges in the pending loan amount and also to restrain the opposite party from initiating recovery steps for realising the loan amount till the disposal of the appeal case and to direct the opposite party to pa cost and compensation.

 

Upon notice, opposite party entered appearance and filed reply version admitting the sanction of the vehicle loan. Opposite party further contended that they had never directed specifically the complainant to take the insurance policy from Oriental Insurance Company. The opposite party directs every customer to produce the insurance policy and they bring the policy as their wish. Opposite party further contended that when a vehicle met an accident, it is the bounden duty of the registered owner to intimate the matter to the concerned police station and insurance company for the policy claim and follow up procedures and it is not the duty of the financier. Every borrower is legally liable to pay the loan amount along with its interest and other legally enforcible charges for the default and delayed payment till the realisation of full and final settlement of account.

(cont....3)

- 3 -

Hence the complainant is liable to pay the amount as per the condition stipulated in the agreement and hence there is no deficiency in the service rendered by the opposite party.

 

Evidence adduced by the complainant by way of documents. Complainant filed documents such as loan account details and order in CC No.256/2014 and are marked as Exts.P1 and P2 respectively. From the opposite side, opposite party produced loan statement of account 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 party and if so, for what relief the complainant is entitled to ?

 

The POINT :- It is an admitted fact that complainant purchased a Bolero Maxi Truck with the financial aid of the opposite party, agreeing to pay the loan amount with interest in 48 monthly instalments. But unfortunately, the vehicle met with an accident and totally damaged. It is also to be considered as the vehicle he purchased is for earning his livelihood. He cannot use the vehicle for a single day and cannot earned a singe pie by running the vehicle.

 

It is further admitted that, before registering it with the authorities, the accident has caused. Eventhough the insurance surveyor reported it as a total loss, the company rejected the claim on some other reasons. This act of the insurance company was challenged by the complainant by filing a complaint before the Forum and the Forum allowed the case and directed to pay the IDV amount along with interest and cost. From the records, it is seen that matter is duly intimated to the financing company, the opposite party. But the learned counsel appeared for opposite party vehemently argued that the denying or allowing an insurance claim cannot binding them. Whether the vehicle is running or not, borrower is bound to act as per the loan agreement. Moreover the finance company is legally entitled to impose penal charges for the defaulted payment, till the realisation of the amount as full and final.

(cont....4)

- 4 -

Here in this present case, the finance company is well aware that what prevented the complainant in paying the monthly instalments of the loan. Eventhough the expectation of the complainant is shattered due to the accident of the vehicle and denial of the insurance claim and resultant issues, complainant is bound to pay the loan amount along with interest which is legally entitled to the opposite party.

 

Here complainant alleged that opposite party demanding a huge amount as loan dues by way of penal interest and other overdue charges. From the averment of the complaint, it is seen that complainant is ready to remit the loan amount along with its normal interest subject to the decision of the Appellate Commission in Appeal No.658/2015.

 

On going through the entire materials of evidence, Forum is of a considered view that, the opposite party financier can consider it as a special case, by considering the financial background and the mental sufferings of the complainant on a humanitarian ground, since the appeal proceedings are not binding them and can grant some more time in realising the loan amount from the complainant.

 

On the basis of the above discussion, the Forum directs the opposite party to stop all the recovery steps initiated against the complainant for the recovery of the loan amount till the disposal of the above stated appeal. The opposite party is at liberty to recover the loan dues along with 12% interest in defaulted loan instalments from the date of default till its realisation, subject to the decision of the Appellate authority.

 

Pronounced in the Open Forum on this the 27^th day of September, 2019

 

 

Sd/-

SRI. S. GOPAKUMAR, PRESIDENT

 

 

Sd/-

SMT. ASAMOL. P, MEMBER

 

(cont....5)

- 5 -

 

APPENDIX

 

Depositions :

Nil.

Exhibits :

On the side of the Complainant :

Ext.P1 - loan account details.

Exts.P2 - order in CC No.256/2014

On the side of the Opposite Party :

Ext.R1 - loan statement of account.

 

 

 

Forwarded by Order,

 

 

 

SENIOR SUPERINTENDENT