DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BARNALA, PUNJAB.

 

Consumer Complaint No.: CC/93/2017

Date of Institution : 14.07.2017

Date of Decision : 08.07.2019

Swaranjit Singh aged about 43 years son of Sh. Labh Singh resident of Village Sahour, Tehsil and District Barnala.    

           …Complainant

Versus

Mahindra and Mahindra Financial Service Limited, 1st Floor, PNB Building, Near Over Bridgem Kacha College Road, Barnala-148101 through Branch Manager.   

        …Opposite Party

Complaint Under Section 12 of Consumer Protection Act,1986.

Present: Sh. Puneet Pabby counsel for the complainant.

Sh. S.K. Kotia counsel for the opposite party.  

 

Quorum.-

1. Sh. Kuljit Singh : President

2. Sh. Tejinder Singh Bhangu : Member

3. Smt. Manisha : Member

 

(ORDER BY KULJIT SINGH PRESIDENT):

  The complainant namely Swaranjit Singh son of Labh Singh has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 (As amended up to date) against Mahindra and Mahindra Financial Service Limited, Barnala. (hereinafter referred as opposite party).  

2. The brief facts of the present complaint as stated by the complainant are that complainant is the owner of Tractor Mahindra 265 DI bearing registration No. PB-19-H-6320 bearing Engine No. REBW01016, Chassis No. REBW01016 Model 2013. He got financed loan through loan agreement with the opposite party and regularly paying the installments to the opposite party.  

3. It is further alleged that the opposite party has impounded the vehicle of the complainant on 6.5.2017 from the custody of the complainant without any prior notice to him when vehicle was stationed at service station for service of tractor at Sahour. The opposite parties via hiring the services of the goons illegally impounded and got custody of complainant's tractor without any reason. He approached the opposite party to release his tractor but to no effect. It is further submitted that the complainant is paying the installments to the opposite party well in time and also ready to pay the installments but the opposite party not listening the grievance of complainant which is deficiency in service on their part. It is also the apprehension of the complainant that opposite party would sale the complainant's tractor and they even threatened to do so which caused irreparable loss to the complainant. The complainant is a poor person and used his tractor to earn his livelihood. The complainant many time visited the office of the opposite party but to no effect. Hence the present complaint is filed seeking the following reliefs:-

1) The opposite party may be directed to return the tractor of the complainant alongwith compensation of Rs. 50,000/- on account of loss of income.  

2) To pay Rs. 20,000/- on account of compensation for mental and physical agony and torture.  

3) To pay Rs. 15,000/- on account of litigation expenses.    

4) Any other relief which the complainant is found entitled.    

4. After service of notice of this complaint, opposite party  appeared and filed written version taking preliminary objections on the grounds that the complainant has not come to this Forum with clean hands and concealed the true and material facts and complaint is not maintainable in the present form. The opposite party objected that at the time of obtaining loan by the complainant a loan agreement has been executed between the parties in which the arbitration clause is mentioned that if any dispute arises then they come before the arbitration appointed by the opposite party but the complainant did not approach the arbitrator as per clause of agreement. The opposite party further objected that the complainant has no cause of action to file the present complaint and as per official record on 6.7.2017 the complainant surrendered his vehicle to the opposite party with own consent as he was/is a defaulter of the opposite party. 

5. On merits, it is admitted by the opposite party that complainant  availed financial service from the opposite party and obtained Rs. 3,52,790/- as loan amount for purchasing of Mahindra 265 DI Bhoomiputra Tractor from the opposite party and complainant was the owner of the said tractor. But on 6.7.2017 he handed over the said tractor to the representative of the opposite party with his own will and now it is in the custody of the opposite party. The opposite party submitted that at the time of financing the amount the complainant executed a loan agreement with the opposite party on 30.11.2013 in which it is mentioned that complainant will pay Rs. 3,52,790/- as principal amount and Rs. 1,57,210/- as interest totaling Rs. 5,10,000/- in eight half yearly installments and if he failed to pay the installments in time then opposite party charged delay payment charges, penalty and other charges from him. The opposite party alleged that the complainant failed to pay the installments in time and loan period was expired on 15.6.2017 and he had paid only Rs. 3,00,000/- on different dates  and now as per account statement of the complainant Rs. 2,10,000/- installments and overdue amount of Rs. 75,000/- penalties and Rs. 10,000/- recovery charges totaling Rs. 2,95,000/- are pending against the complainant. The representative of opposite party visited the house of the complainant on 15.6.2017 and requested him to pay all the outstanding amount but he failed to pay the same and wants to return the tractor. The opposite party further alleged that on 6.7.2017 Mr. Amandeep Sidhu alongwith another person visited at Village Thulliwal where complainant handed over the said vehicle to the opposite party and a surrender letter was also given to the complainant. The opposite party alleged that they even intimated the Police Station Thulliwal regarding custody of the vehicle.

6. The opposite party alleged that they can sell the vehicle to another person as per clause mentioned in the agreement but if the complainant is ready to pay all the dues/outstanding of the loan amount i.e. Rs. 2,95,000/- to the opposite party then they have no objection to return the vehicle in question to the complainant. So, there is no deficiency in service on the part of the opposite party. Lastly opposite party prayed for the dismissal of the present complaint with costs. 

7. The complainant in order to support his complaint has tendered in evidence his affidavit as Ex.C-1, copy of registration certificate s Ex.C-2, copies of receipts as Ex.C-3 to Ex.C-5, copies of receipts as Ex.C-6 to Ex.C-9, affidavit of Sudagar Singh as Ex.C-10, copy of account statement as Ex.C-11, copy of loan agreement as Ex.C-12, copy of request for transfer/ sale as Ex.C-13, copy of the schedule as Ex.C-14, copy of schedule-2 as Ex.C-15  and closed  the evidence on behalf of complainant.

8. On the other hand, the opposite party to support their version have tendered into evidence affidavit of Anurag Sharma Legal Manager as Ex.OP-1, copy of letter dated 6.7.2017 as Ex.OP-2, copy of surrender letter as Ex.OP-3, copy of letter dated 6.7.2017 to PS Thulliwal as Ex.OP-4, copy of letter dated 8.7.2017 as Ex.OP-5, copy of postal receipt as Ex.OP-6, copy of inventory sheet as Ex.OP-7, copy of Asset Received Note as Ex.OP-8, copy of letter dated 8.7.2017 alongwith two postal receipts as Ex.OP-9, copy of statement of account as Ex.OP-10, copy of loan agreement as Ex.OP-11, copy of request for transfer/sale as Ex.OP-12, copy of Schedule-1 as Ex.OP-13, copy of agreement dated 30.11.2013 as Ex.OP-14 and closed the evidence on behalf of opposite party. 

9. We have heard the learned counsel for the parties and have gone through the record on the file. Written arguments filed by the parties have also been gone through.

10. It is an admitted fact between the parties that the complainant got financed loan from the opposite party and executed a loan agreement Ex.C-12. It is also admitted between the parties that the complainant paid the amount of Rs. 3,00,000/- to the opposite party out of the loan amount vide receipts Ex.C-3 to Ex.C-9. It is admitted between the parties the tractor of the complainant is in possession of the opposite party from 6.7.2017. 

11. Now the main question before us whether the complainant is entitled to return his tractor by paying the balance amount, from the opposite party or not ?

12. To prove his case the complainant tendered in evidence statement of Account dated 25.7.2017 Ex.C-11 vide which he has successfully proved that on 25.7.2017 an amount of Rs. 2,10,000/- was outstanding against the complainant. Even the opposite party also filed the same document as Ex.OP-10. However, in the written version and affidavit of Anurag Sharma Legal Manager Ex.OP-1, the opposite party demanded the amount of Rs. 2,95,000/- out of which Rs. 2,10,000/- on account of remaining installments and overdue amount, Rs. 75,000/- penalties and Rs. 10,000/- recovery charges. But in our view the complainant is not liable to pay the penalty and recovery charges as he already paid Rs. 3,00,000/- out of the total loan amount of Rs. 3,52,790/- and the outstanding amount of Rs. 2,10,000/- included only Rs. 52,790/- as principal amount and rest amount is interest and if we permit the opposite party to recover the amount of Rs. 85,000/- more from the complainant then it is very hardship with the complainant. The opposite party failed to produce any document vide which they can prove that they are liable to recover the charges of Rs. 85,000/- from the complainant. So, in our view the opposite party is entitled to the amount of Rs. 2,10,000/- alongwith interest.

13. The complainant is ready to pay the outstanding amount in installments as he has not much source of income, so we are of the view that the complainant is entitled to return his tractor by paying the outstanding amount even in installments. 

14. As a result of the above discussion, present complaint is partly allowed and the complainant is directed to pay the total amount of Rs.2,10,000/- to the opposite party alongwith simple interest of 6% per annum from the date when the opposite party took the possession of the tractor i.e. 6.7.2017 till realization in installments. Accordingly, the opposite party is directed to return the tractor of the complainant against proper receipt only on the deposit of Rs. 95,000/- from him and receive the balance payment in four installments and each installment is to be paid after the gap of six months and in case of missing of installment the opposite party has a right to take the possession of the tractor again and sale the same. The opposite party is also directed to receive the installments as and when complainant deposits the same and the opposite party cannot intentionally refuse to deposit the installment for want of possession of the tractor again. Compliance of order be made within the period of 30 days from the date of the receipt of the copy of this order. Copy of the order be supplied to the parties free of costs. File be consigned to the records after its due compliance.

  ANNOUNCED IN THE OPEN FORUM:

8th  Day of July 2019

 

 

            (Kuljit Singh)

           President

 

 

           (Tejinder Singh Bhangu)                Member

 

(Manisha)

Member