By Sri. MOHANDASAN.K, PRESIDENT
The complaint U/s 12 of the Consumer Protection Act 1986
The complaint in short is as follows:-
1. The complainant is the registered owner of KL 10 AK 5988 Chevrolet Diesel car. The vehicle was financed with first opposite party and the first opposite party issued a loan of Rs.3,49,000/-. The term was to repay the loan amount as 48 equal monthly installment of Rs. 9,528/- . The agreement was to repay the entire amount on or before 01/04/2016. The complainant submit that the opposite party had collected 48 cheque leaves towards the repayment of loan amount and also there was an under taking that not to present the cheque before the bank but to pay as cash before the opposite party office. The complainant remitted the installments through one Viswan alias Vijayan, the collection agent of the opposite party. The opposite party had issued receipts for the payment and out of that, 21 receipts are with the complainant. The complainant submit that out of the 21 receipts, 15 receipts were for payment of Rs.10,000/ each, two receipts were for Rs.10,084/- and Rs.10,072 respectively. Four receipts were for 9,528/- rupees each. Complainant submits that some of the receipts missed from the complainant. The first opposite party had collected almost all occasions Rs 500/-as cheque bouncing charge while remitting 10,000/- rupees. The approach of the opposite party presenting cheque and thereby collecting bouncing charge was against the terms of understanding while entering the agreement. The complainant submit that the opposite party admitted in the account statement that the complainant remitted 40 installments as Rs.9,528/- i.e., total 3,81,120/- rupees. The opposite party statement also reveals that the complainant had remitted Rs.9,530/-, Rs.9,534, 9,522/- on three occasions. On 31/10/2016 the complainant remitted 45,000/- rupees and two occasions as Rs.10,000/-. The complainant also remitted Rs.13,977/- as cheque bouncing charge. The submission of the complainant is that the complainant remitted 4,91,183/- rupees instead of 4,57,344/- rupees. The claim of the complainant is that the complainant remitted 33,839/- rupees in excess. The complainant submit that he remitted 10,000/- on 26/02/2017 as per advice from the opposite party office that his account will be closed on payment of Rs.10,000/-. Thereafter the complainant approached opposite party for the No Objection Certificate to cancel the Hypothecation Endorsement from the registration certificate, but the opposite party further demanded 60,000/- rupees more to issue the No Objection Certificate.
2. The submission of the complainant is that as per agreement the complainant was bound to pay only Rs.4,57,344/-. But there was delay of 10 months in payment of the loan amount and as per demand from the opposite party the complainant remitted an additional amount of Rs. 33839/- but even the opposite party did not issue No Objection Certificate and so the act of opposite party amounts unfair trade practice and there is deficiency in service . So the prayer of the complainant is to direct the first opposite party to issue No Objection Certificate and in case the first opposite party fail to issue No Objection Certificate . The second opposite party may be directed to cancel the Hire Purchase endorsement from the registration and also direct first opposite party to pay Rs.50,000/- as compensation and cost of the proceedings.
3. On admission of the complaint notice was issued to the opposite parties and they entered appearance and filed version.
4. The first opposite party admit that a loan for Rs.3,49,000/- was issued to complainant with the condition to repay the loan amount through 48 monthly equal instilments. The total amount complainant ought to have paid as per agreement was Rs. 4,57,344/-. As per the agreement the payment commences from 01/05/2012 and the last installment is to be paid on 01/04/2016. The complainant had agreed to pay incidental expenses, interest on defaulted overdue amount, cheque bouncing charge etc. So the complainant is liable to pay the above liabilities as per agreement. The contention of the opposite party is that the complainant defaulted in payment of installments. The opposite party also submitted that the contention of the complainant that there was an under taking not to present cheque before the bank and to pay through the agent as cash is not correct hence denied. It is also denied that the opposite party had stated on payment of 10,000/- rupees the entire liability will stand closed. The opposite party contented that the last payment of instilment was on 26/02/2016 which can be perused from the statements of account and thereby it can be noted there was arrears towards the loan amount. The attempt of the complainant is to obtain No Objection Certificate without remitting the arrear amount. Hence the contention of opposite party is that they are doing the business in accordance with the conditions laid by RBI and the demand of the complainant is not legally sustainable. It is submitted that there was no negligence or deficiency on the part of the first opposite party. Hence complaint is to be dismissed with cost of the first opposite party.
5. The second opposite party submitted version stating that as per Central Motor Vehicles Act an application with No Objection Certificate from the financier along with incidental documents are required to cancel the Hypothecation Endorsement from the registration certificate .
6. The complainant and first opposite party filed affidavit and documents. Second opposite party did not file affidavit. The documents on the side of complainant marked as Ext. A1 to A3. Ext. A1 is payment receipt series (21 in number). Ext. A2 is copy of registration certificate. Ext. A3 is copy of statement of account dated 30/03/2012 to 28/03/2018. The first opposite party document marked as Ext. B1 and it is statement of account for the period 30/03/2012 to 12/09/2018.
7. Heard complainant and first opposite party, perused affidavit and documents and stood for the consideration of following points:-
- Whether there is deficicneny in service on the part of first opposite party?
- Relief and cost?
8. Point No.1
The grievance of the complainant is that he availed a loan of Rs.3,49,000/- from the first opposite party and he repaid the entire amount of loan and an additional amount of Rs.33,839/- was also paid. He approached opposite party for the No Objection Certificate to cancel the H P endorsement from the R C and that time the first opposite party directed him to pay an additional amount of Rs.10,000/- and he paid it on 26/02/2017. He was directed to report after 10 days for collecting No Objection Certificate. While he approached thereafter the first opposite party demanded further amount of Rs.60,000/-. The complainant admits that there was default in payment of installments but he submits that he has paid an additional amount of Rs.33,839/-.
9. The complainant and first opposite party admit that the last instalment for the payment was on 01/04/2016. But from the averments and as per Ext A3 and B1 the complainant has paid the loan amount but there were some arrears on account of default in payment and also cheque bouncing charges. The contention of the complainant is that he has paid an additional amount of Rs.33,839/- towards the defaulted payment.
10. The averments in the version as well as in the affidavit of opposite party there is no specific contention regarding the dues from the complainant towards the loan amount. In the absences of specific averments regarding the entitlement of arrears we cannot uphold the claim of the opposite party as correct. On the other side complainant has submitted the fact that though there was default in payment but has paid the entire amount and also an amount of Rs.33,839/- in addition to the loan amount. So it is not proper service on the part of the opposite party to retain No Objection Certificate despite of payment of entire loan amount and dues. The claim of the opposite party amounts interest on interest which cannot be entertained at all. In the light of the above facts and circumstances we find the first point that there is deficiency in service on the part of the first opposite party.
11. Point No.2
The complainant availed financial assistance to purchase a vehicle for his family use and he paid the loan amount with a short period of delay. He was demanding No Objection Certificate for a long period since last 4 years. The attitude of the opposite party caused much hardships and inconvenience to the complainant and so he is entitled a reasonable amount as compensation. But at the time of hearing the counsel for the complainant submitted that he is satisfied with the issuance of No Objection Certificate and other documents which are in possession of the first opposite party. Hence we allow this complaint as follows:-
- The first opposite party is directed to issue No Objection Certificate to the complainant within one month from the date of receipt of copy of this order.
- If the first opposite party fails to issue the No Objection Certificate within one month from the date of receipt of copy of this order the complainant will be entitled for an amount of rupees 50,000/ as compensation on account of deficiency in service, inconveniences and hardships caused to the complainant.
3) The second opposite party is directed to cancel the H P endorsement from the
R C of the vehicle No. KL 10 AK 5988 in case the first opposite party fails to issue No Objection Certificate as per this order.
The first opposite party shall comply this order within one month from the date of receipt of copy of this order, failing which the first opposite party shall be liable to pay 12% interest on above said amount from the date of receipt of this order till realization.
Dated this 28th day of February, 2022.
APPENDIX
Witness examined on the side of the complainant: Nil
Documents marked on the side of the complainant: Ext.A1 to A3
Ext.A1: Payment receipts series are (21 in number).
Ext.A2: Copy of registration certificate.
Ext A3: Copy of statement of account dated 30/03/2012 to 28/03/2018.
Witness examined on the side of the opposite party: Nil
Documents marked on the side of the opposite party: Ext. B1
Ext.B1: Statement of account 30/03/2012 to 12/09/2018
MOHANDASAN.K, PRESIDENT
PREETHI SIVARAMAN.C, MEMBER
