By Smt. Saji Mathew, Member<br /> <br /> The gist of the complaint is as follows:<br /> <br /> The complainant has bought a Bike of Yamaha Company Liberto model on 14-7-03. For buying the bike, the complainant has availed a loan of Rs.32,000/- from the Opposite Parties. As per the loan agreement, the complainant has to remit Rs.41,837/- by 28 monthly installments. The last installment due date was on 4.11.03. The Opposite Party had taken 5 signed chqeque leaves from the complainant as security. The complainant has repaid the entire amount on<br /> 30-8-05, two months before the agreement date. He has paid an excess amount of Rs. 1,960/- as demanded by the opposite parties. Even then the Opposite Party has not issued loan clearance certificate to the complainant. This is deficiency in service on the part of the Opposite Parties and the complainant has suffered loss and damages on account of this. So the complainants prays for an order directing the Opposite Parties to issue loan clearance certificate or directing <br /> the R.T.O., Wayanad to cancel the H.P. endorsement in the R.C.Book of the Bike KL.12-B5598. <br /> <br /> . The complainant also prays for the return of cheque leaves and payment of cost and relief to the complainant.<br /> <br /> 3. The Opposite Parties appeared and filed version, The Opposite Parties contented that this Forum has no jurisdiction to entertain the case and the complainant is not a consumer. According to the Opposite Parties, an amount of Rs.8,990/- has to be paid by the complainant towards the loan amount, interest and cost. Without paying this amount, the complainant is not entitled to get clearance from the Opposite Parties. The Opposite Parties denied the allegation<br /> that signed blank cheque was received by them as security for the repayment. According to the Opposite Parties, a hypothecation agreement was executed between the complainant and Opposite Parties . As per the terms of this agreement, if there is any delay in remitting the monthly installments, the Opposite Party is entitled to collect compensation from time to time at the rate of 2.5% in addition on the amount per mensom from the due date until the date of payment in full. As per the regular accounts maintained by the Opposite Party there is a balance of Rs.8,990/- and the complainant is liable to pay the amount as on 30.11.07. Without remitting the said amount, the complainant is not entitled to get any relief as claimed in the petition.<br /> <br /> 4. The complainant was examined as PW1 and documents were marked as Ext. A1 to A4 on complainant's side. The Opposite Party was examined as OP W1 and document was marked as Ext. B1 on the side of the Opposite Party.<br /> 5. The points in consideration are as follows:<br /> <br /> 1. Whether the complaint is maintainable before the forum?<br /> 2. Whether there is any deficiency in service on the part of the Opposite Parties.?<br /> 3. Whether the complainant is entitled to get any relief or compensation.?<br /> <br /> <br /> 6. Point No.1: The Opposite Parties has filed an IA No.68/07 for referring the matter to arbitration as it is not maintainable before this Forum. This I.A was dismissed and a separate order was made. So there is no need for further discussion on this point<br /> <br /> 7. Point No.2: It is seen that the loan amount is Rs.32,000/- as per Ext. B1. The first due date is 4-7-03 and the last due date is 4.12.05. And for this period of 30 months, interest was calculated at the rate of 13.5% and an amount of Rs.10,772/- and insurance premium of Rs.2,000/- also added to the principal amount, the final amount being Rs.44,772/-. This amount is divided into 30 installments to be paid by complainant Hence the interest is calculated on the entire loan amount for the entire loan period. The complainant has produced receipts for the remittance of Rs.36,870/-. The complainant has produced hypothecation statement issued by the opposite party showing payments made by the complainant. It (Ext. A1 and A3) shows that an amount of Rs.45,836/- is paid by the complainant towards the loan. Opposite party also agree this fact in his cross examination. The opposite parties agrees that the complainant has remitted excess amount than shown in the HP agreement. Hence the opposite party is still demanding Rs.8,990/- from the complainant. The opposite party contents that if there is delay in remitting the monthly instalments, a compensation at the rate of 2.5 % per month on the said amount from the due date till payment has to be made by the complainant. The Hon. National Commission has held in Ashok Lyland Finance Ltd. Vs. Ramji Lal Guptha- (2008) CPJ that penal interest can be obtained on instalments deposited after the prescribed date ie, the agreement period. Even after accepting excess amount than the agreement amount within the agreement period, the opposite party has not issued clearance certificate to the complainant. This is deficiency in service on the part of the opposite party and the 1st point is decided against the opposite party.<br /> <br /> 8. Point No.3: As there is deficiency in service on the part of the opposite party, the <br /> <br /> <br /> complainant is entitled to be compensated. The opposite party has to issue loan clearance certificate to the complainant. There is prayer in the complaint for the return of the <br /> cheque leaves obtained by the opposite party as security for the payment. But details of the cheque leaves are not shown in the complaint. No evidence is adduced about the receipt of cheques by the opposite party. So there is no order regarding the return of cheque leaves.<br /> <br /> 9. Hence, the opposite party is directed to issue loan clearance certificate to the complainant within 30 days of the receipt of this order. The opposite party is also directed to pay a compensation of Rs.2000/- ( Rupees two thousand only) to the complainant. The complainant is entitled to execute this order as per law.<br /> <br /> Pronounced in the open Forum on the 21st May 2008.<br /> PRESIDENT: Sd/-<br /> MEMBER: Sd/-<br /> /True copy/ Sd/-<br /> PRESIDENT, CDRF, WAYANAD.<br /> APPENDIX<br /> Witnesses for complainant:<br /> PW1 Abdul Majeed Complainant<br /> Witnesses for opposite parties:<br /> OPW1 Viju O.B. Divisional Manager, Manapuram finance.<br /> Exhibits marked for complainant:<br /> A1 (Series 14 Nos.) Cash receipts.<br /> A2 Loan installment chart <br /> A3 Statement<br /> A4 Notice<br /> Exhibits marked for opposite parties.<br /> B1 Agreement