Kerala

Idukki

CC/11/2018

Karim - Complainant(s)

Versus

Manager Mahindra and Mahindra Finance Service - Opp.Party(s)

Adv.K M Sanu

26 Jul 2019

ORDER

DATE OF FILING : 19/01/18

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 26^th day of July 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT. ASAMOL P. MEMBER

CC NO. 11/2018

Between

Complainant : Karim, S/o Konthalam,

Olickal House,

Vengalloor P.O., Thodupuzha.

(By Adv: K.M.Sanu)

And

Opposite Party : 1 . The Manager,

Mahindra & Mahindra Financial Services Ltd.,

Vengalloor P.O., Thodupuzha.

2 . The Manager,

Mahindra & Mahindra Financial Services Ltd.,

Noyal House, Thrikkakkara P.O.,

Kakkanadu, Kochi- 682 021.

 

O R D E R

SRI. S. GOPAKUMAR (PRESIDENT)

 

The case of the complainant is that,

 

The complainant had availed a vehicle loan of Rs.3,25,000/- from opposite parties bank on 23/11/15 promising to repay the same with interest in 48 instalments @ Rs.9910/- per month. The interest for this amount is calculated 1,44,770/-. Hence the complainant is liable to be repay an amount of Rs.4,69,770/- in total. The complainant failed to remit 4 instalments in proper date and hence the opposite parties imposed Rs.500 to 600 as penal interest upon these each defaulted instalments. The complainant further stated that he is ready to remit the defaulted instalments along with the future instalments for that the complainant approached the first opposite party for remitting some amount in this loan, but the opposite parties were reluctant to receive the amount and at the same time opposite parties threatened the complainant

(Cont.....2)

-2-

that if the complainant is failed to remit the loan amount in total in a single instalment, they will initiate recovery proceedings against him. Complainant further stated that even if he intimated the opposite parties that he is ready to remit the loan amount along with penal interest if the opposite parties re-schedule the loan instalments, within the loan period, the opposite parties trying to initiate coercive steps for realising the loan amount as a whole without considering the monthly instalments. This act of the opposite parties are gross deficiency in service and unfair trade practice. Against this the complainant filed this petition seeking relief such as to direct the opposite parties to re-schedule the loan instalments and impose only 12% penal interest in the defaulted instalments and further direct them to pay cost and compensation.

 

Upon notice opposite parties entered appearance and filed detailed reply version by admitting the issuance of the loan in question. Opposite parties further contented that, in spite of the loan agreement the complainant had not repaid the loan instalments since August 2017, the loan is in due. The complainant is entitled to pay additional finance charge to the opposite parties for the defaulted amount as per the agreement. The opposite parties had not threatened or tried to take forcible possession of the vehicle. The complainant had signed the loan agreement and upon which the loan was disbursed to him, and the present attempt is to delay the payment of loan instalments.

 

Opposite parties further contented that as opposite parties are the registered NBFC, according to the guidelines of RBI, the opposite parties has the right to recall the entire outstanding principle, interest and charges.

 

Evidence adduced by the complainant by way of documents such as copy of RC book and loan statement of account. From the opposite parties side except the written version no other evidence is produced.

 

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 ?

(Cont.....3)

-3-

The Point:- We have heard the counsels for both the parties and had gone through the evidence on record. It is an admitted fact that the complainant had committed some default in repayment of the vehicle loan discussed above. The version of the complainant that the opposite parties denied to accept some instalments from the complainant, and they demanded the entire loan along with penal interest as a whole is not challenged by them in their reply version. On perusing Ext.P2, it is very clear that complainant remitted 21 instalments properly and he defaulted 4 instalments. For this default instalments opposite parties charged Rs.500/ each as cheque return charges. In the complaint, the complainant specifically admitted that he is ready to repay the future instalments with interest @ 12%, if the opposite parties re-schedule the loan instalments. In the reply version, opposite parties has not stated anything about this admission of the complainant and on going through the entire materials of this case the Forum is of a considered view that the complainant is not a chronic defaulter, and more over he was not evaded from further payment and he is always ready and willing to pay the defaulted instalments along with the future instalments.

 

On the basis of above observation the complaint allowed in part. Opposite parties are directed to re-schedule the loan instalments by imposing 12% penal interest in defaulted instalments and issue a statement of account to the complainant within 30 days from the date of receipt of the copy of this order. If the complainant is serving such a statement of account, he is directed to repay the defaulted 4 instalments along with 12% penal interest in lump sum within a period of 30 days from the date of receipt of the statement of account and continue future instalments as per the loan agreement.

 

No order to cost or compensation.

 

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

 

Sd/-

SRI. S. GOPAKUMAR (PRESIDENT)

Sd/-

SMT. ASAMOL P. (MEMBER)

 

(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 - Loan statement of account

On the side of the Opposite Party :

Nil.

 

Forwarded by Order,

 

 

SENIOR SUPERINTENDENT