By. Smt. Renimol Mathew, Member:
The complaint is filed under section 12 of the Consumer Protection Act against the opposite party to get No Objection Certificate from opposite party No.2 to cancel the endorsement in the Registration Certificate.
2. Brief of the complaint:- The case of the complainant is that he is the registered owner of vehicle KL 12 H1580, Hyundai Eon Sportz car registered with Joint R T 0, Sulthan bathery. The complainant has availed vehicle loan of Rs.3,45,000/- on 19.10.2012 from the opposite party No.1 and the loan amount was disbursed by opposite party No.2 in respect of above said vehicle. The complainant has repaid an amount of Rs.4,64,000/- to the loan account by 47 instalments and there is no dues pending in the loan account the complainant paid the penal interest along with the installments. After repayment of loan amount the complainant approached the opposite party No.2 and demanded for the cancel the endorsement in RC and the Opposite Party No.2 has verified the accounts and found that the complainant have cleared the entire loan amount and opposite party No.2 told the complainant that they have to get the permission from Opposite Party No.3 and in furtherance the Opposite Party No.2 requested a short time for issuing no objection certificate to cancel the endorsement in RC. Then the Opposite Party No.2, instead of issuing no objection certificate demanded an exorbitant amount of Rs.16,933/- as additional charges. The demand is illegal and the complainant has no legal liability to pay the amount, hence the complaint.
3. On receipt of notice opposite parties appeared and filed version. In the version opposite parties stated that complainant has availed a loan towards the vehicle hypothecation of the vehicle KL 12 H 1580 car. The loan amount was for Rs.3,45,000/-. The agreement value of the loan is Rs.4,64,000/- number of installments fixed as 47 of which the 1st installment was Rs.4,000/- and remaining were Rs.10,000/- each. The terms and conditions of the transactions were reduced in to writing by an agreement dated 19.10.2012 with No.2261157 executed in between the complainant and opposite party No.2 and the liability of the complainant towards the complainant is contractual and this complainant is plying the vehicle in question as taxi for commercial purpose as such complainant is not a consumer. The complainant admittedly was a chronic defaulter in loan repayments, almost all the payment made by complainant were irregular and due to this additional finance charges were attracted and an amount of Rs.16,933/- is still pending due as additional finance charges from the complainant. The complainant is not legally entitled to challenge the same as he has already agreed the same vide Agreement dated 19.10.2012 entered into between him and the second opposite party and also it is the contractual liability of the complainant to pay the same to the opposite parties. So as the complainant is liable to pay cheque return charges for dishonour of cheque and the opposite parties are legally entitled to recover the same from the complainant and there is no deficiency of service taken place on the part of opposite party as alleged by the complainant.
4. Complainant examined as PW1 and opposite party's Manager examined as OPW1 and Ext.B1 confronted and marked through PW1 and Ext.B2 and B3 were marked through OPW1. Terms of Agreement (Ext.B1) were admitted by complainant, Loan amount number of installments and the repaid amount were admitted by both parties. Subsequently opposite party demanded Rs.16,933/- as additional finance charges for issuing Loan Clearance Certificate is challenged by the complainant through this complaint.
5. On perusal of complaint, version and documents the Forum raised the following points for consideration:-
1. Whether opposite party is entitled to collect Rs.16,933/- as Additional Finance
Charge?.
2. Whether there is any deficiency of service on the part of opposite parties?
3. Whether the complainant is entitled for any relief?
6. Point No.1:- In Para 3 of complaint as well as during cross examination complainant admitted that he has defaulted some installments due to some financial crisis he could not make the payment of few installments on the due date. But later he had paid penal interest along with the installments. The complainant using the vehicle in question is for earning his livelihood in connection with his business. After remitted the entire amount the complainant requested for No Objection Certificate for cancel loan endorsement opposite parties demanded to pay Rs.16,933/- as additional Finance Charges illegally. Opposite party has right to claim only 2% of excess interest than commercial banks. This opposite party has already collected 36% interest from the complainant apart from this now opposite parties claiming huge amount as additional hire charges. Complainant further argued that opposite party is well aware that the complainant has paid the entire loan amount and penal interest now they are demanding more amount with an intention to make illegal enrichment.
7. Opposite party objected the case and argued that, what they have demanded from complainant as per Ext.B1 Agreement. Admittedly complainant is a defaulter, there is no evidence adduced by the complainant. The complainant has no specific case that the opposite parties has violated any of the single terms of the Ext.B1 agreement and there is no such pleading also in the complainant. More than this, this is not a complaint filed by the opposite parties against the complainant to realize the amount due. The very intention of the complainant by filing the complaint is solely to escape from the liability of repaying the existing debt. The Hon'ble Court may kindly see that there is provision in the Ext.B1 agreement to collect additional finance charges and cheque return charges,etc, from the complainant. The details of rate of interest, additional finance charges, etc, are there in the Ext.B1 agreement. There is no evidence adduced by the complainant or the complainant has not produced any documentary evidence which go to show that he has paid the alleged installments with interest/additional finance charges and other charges, cost etc, of loan repayment. In this case the complainant admittedly and deliberately put himself away from the witness box and instead of him, his father was examined and surprisingly when the witness was examined, he ,without any hesitation deposed that the original complainant is not having any difficulty in coming before the Hon'ble Forum to give evidence. The complainants witness specifically deposed during cross examination that they have obtained and they are in possession of loan repayment installment receipts and the same is kept by them and also they are ready to produce the same before the Hon'ble Forum but the complainant miserably failed in producing the same. No documents marked on the complainant's side as per the proof affidavit filed by the witness. The opposite parties will be able to issue no objection certificate to the complainant on after clearing the entire dues existing in the loan account along with interest/AFC and cost. This is known to and agreed by the complainant also as per the Ext.B1 agreement. The complainant has tried to built up a case to the effect that the opposite parties have violated the stipulation of RBI with regard to interest, etc, during cross examination of the opposite parties witness in the above matter. It is kindly to be noted that the same is not supported by pleadings and the same is not proved by the complainant through evidence also. For the sake of argument, even though the complainant is pointing the same as question of law, he is supposed to bring the notice of the Hon'ble Forum by proceeding with authorities, RBI rules, case laws etc, to prove the same and here, the complainant miserably failed in doing so.
8. Point No.2: On going through the evidences, records and submissions we are of the opinion that even if the complainant is a defaulter of few installments he had paid all the installments within the loan period. So as complainant is entitled to get No Objection Certificate from the opposite parties on payment of additional finance charges to the opposite party. Since the complainant could not prove that he has paid the alleged installments wit interest additional finance charges and other charges of loan repayment, hence we cannot attribute any deficiency of service on the part of opposite party. Point No.2 is decided accordingly.
9. Point No.3:- Since there is no deficiency of service on the part of opposite parties, complainant is not entitled to get any cost and compensation. Point No.3 is decided accordingly.
In the result, the complaint is partly allowed and opposite parties are directed to issue No Objection Certificate to cancel the endorsement in RC of complainant's vehicle on receipt of Rs.8,500/- (Rupees Eight Thousand and Five Hundred) being half of the Additional Finance Charges from the complainant. No Order as to Cost and compensation.
Dictated to the Confidential Assistant, transcribed by him and corrected by me and Pronounced in the Open Forum on this the 17th day of October 2017.
Date of Filing:18.02.2017.
PRESIDENT :Sd/-
MEMBER :Sd/-
MEMBER :Sd/-
/True Copy/
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PRESIDENT, CDRF, WAYANAD.
APPENDIX.
Witness for the complainant:-
PW1. Kunjumon. Driver.
Witness for the Opposite Parties:-
OPW1. Devanand. Manager, Mahindra Finance, Sulthan Bathery.
Exhibits for the complainant:
A1. Authorization Letter. Dt:14.06.2017.
A2. Copy of Statement of Account.
Exhibits for the opposite parties:-
B1. Loan Agreement. Dt:19.08.2012.
B2. Copy of Power of Attorney.
B3. Statement of Account. Dt:20.03.2017.
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PRESIDENT, CDRF, WAYANAD.
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