DATE OF FILING :14/12/16
IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 30th day of January 2018
Present :
SRI. S. GOPAKUMAR PRESIDENT
SRI. BENNY. K. MEMBER
CC NO. 351/16
Between
Complainant : Lijo James,
Erangakkuzhiyil House,
Kumaramangalam P.O.,
Thodupuzha.
(By Adv: K.M.Sanu)
And
Opposite Party : The Manager,
Kallada General Finance (P) Ltd.,
Vengalloor P.O.,
Thodupuzha.
(By Adv: Gem Korason)
O R D E R
SRI. BENNY. K. (MEMBER)
Complainant is the registered owner of the Indica Car bearing registration No. KL -41A -8309 for which he had availed H.P Loan of Rs. 60,000/- from the opposite party. He had agreed to repay the loan amount in 36 monthly instalments of 2335/- each. Due to financial difficulty the complainant failed to remit the instalments in time. There is a due of only 9 instalments. Due to the engine failure the complainant could not play the vehicle and it is the only income for his livelihood. Complainant approached this Forum for the reliefs such as restrain the opposite party for charging exorbitant interest for the defaulted instalments and compensation for mental and financial loss.
In the written version opposite party had admitted that the complainant entered in to a loan agreement to finance a vehicle bearing registration No.KL -41A -8309. On 22/01/15 loan was advanced to the complainant as per the agreement an amount of Rs.60,000/- was advanced. The said amount was agreed to be repaid by 36 monthly instalments of Rs.2367/- each. Out the said instalments the complainant had only remitted 12 instalments. As per the
(Cont....2)
-2-
agreement the complainant had agreed to repay an amount of Rs.85212/- by 36 monthly instalments within the stipulated time. After availing the loan complainant did not turn up to remit the instalments. The reason alleged by the complainant for non payment of instalments is not sufficient and the said allegations are only for the sake of this petition. This opposite party had claimed only what they are legally entitled. The complainant is a gross defaulter and he did not make any payment as stipulated as per the agreement. All the payment was made after the stipulated time, hence opposite party is entitled to claim over due charges as per the terms of the agreement, and the complainant is liable to pay the same. The interest rate was specifically stated in this loan agreement and the instalments was scheduled accordingly the complainant and his guarantors had affixed their signature after knowing all the terms and conditions of the loan.
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 evidence consist of only documents Ext.P1 to Ext.P2 were marked from the side of the complainant. Ext.R1 to Ext.R2 were marked form the side of the opposite party.
The Point:- The complainant had availed a HP loan of Rs.60,000/- from the opposite party, Ext.P1. He had agreed to repay the loan amount in 36 monthly instalments of 2335/- each, Ext.P2. Due to engine trouble and ill health the complainant failed to remit the balance instalments. For closing the loan the opposite party had demanded huge overdue charges and penal interest.
In the written version opposite party had admitted the loan agreement to finance a vehicle bearing registration No. KL -41A -8309. On 22/01/15 the loan was advanced to the complainant as per the agreement Ext.R1 an amount of Rs.60,000/- was advanced, and it is to be repaid by 36 monthly instalments of Rs.2367/- each. Out of the said instalments the complainant had only remitted 12 monthly instalments. After availing the loan, the complainant did not turn up to remit the instalments Ext.R2. This opposite party had claimed only what they are legally entitled. The complainant is a gross defaulter and he did not make any payment as stipulated as per the
(Cont....3)
-3-
agreement. All the payment was made after the stipulated time, hence opposite party is entitled to claim overdue charges as per the terms of the agreement.
Opposite party has no contention against the loan amount and the instalments repayment, opposite party stated that the complainant was a chronic defaulter, since the complainant was not ready to repay the amount opposite party had initiated coercive steps to relies the money due. The only dispute is regarding the default charges. The opposite party has not produced any authentic documents from RBI or Government to show that they can charge huge and exorbitant interest as defaulted charges. It is illegal. There is no specific government order or any circular of RBI to show that they can recover the loan dues with huge and exorbitant penal interest from the defaulter hence we fix interests of 12% per annum for the defaulted instalments for the defaulted period.
Hence petition partially allowed, the opposite party is directed to settle the loan account of the complainant vehemently charging only 12% per annum for the defaulted instalments for the defected period and return all documents as surety for the loan within 30 days of the receipt of the copy of this order, failing which amount shall carry 12% interest per annum from the date of default till the realization.
Pronounced in the Open Forum on this the 30th day of January, 2018.
Sd/-
SRI. BENNY. K. (MEMBER)
Sd/-
SRI. S. GOPAKUMAR (PRESIDENT)
(Cont....4)
-4-
APPENDIX
Depositions :
On the side of the Complainant :
Nil
On the side of the Opposite Party :
Nil
Exhibits :
On the side of the Complainant :
Ext.P1 - Copy of RC Book
Ext.P2 - Copy of Cash Receipt Voucher
On the side of the Opposite Party :
Ext.R1 - Copy of loan agreement
Ext.R2 - The complainant did not turn up to remit the instalments
Forwarded by Order,
SENIOR SUPERINTENDENT
