BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM

VAZHUTHACAUD, THIRUVANANTHAPURAM.

PRESENT

SRI. G. SIVAPRASAD : PRESIDENT

SMT. BEENAKUMARI. A : MEMBER

SMT. S.K.SREELA : MEMBER

C.C. No. 332/2009 Filed on 26.11.2009

Dated : 31.05.2012

Complainant :

R.G. Thulasikumar, T.C No. 27/1454, 'Parvathi Mandiram', Rishimangalam, Vanchiyoor P.O, Thiruvananthapuram-35.

(By adv. Rajesh Kumar. K)

Opposite parties :

1. M/s Bajaj Finance Ltd., Sundari Sundaran Building, 4^th Floor, M.G. Road, Thiruvananthapuram-1.

    

   (By adv. Kishore. R)

    

2. The Managing Director, Bajaj Auto Ltd., Akurdi, Pune-411 035

This O.P having been taken as heard on 27.04.2012, the Forum on 31.05.2012 delivered the following:

ORDER

SMT. BEENAKUMARI.A: MEMBER

Complainant is the owner of a motor bike Bajaj CT 100 DLX-17, having registration No. KL-01 AJ 6138 purchased from Deedi Automobiles, the authorized dealer for the 2^nd opposite party. The total price of the vehicle was Rs. 35,927.13. the said vehicle was purchased out of the loan availed from the opposite parties. At the time of availing the loan, i..e; 17.08.2005, the dealer obtained an amount of Rs. 3,500/- from the complainant. The balance amount together with interest was to be repaid in 36 months at the rate of Rs. 1,334/- per month. The loan period ended in August 2008. At the time of availing the loan the opposite parties also demanded and obtained seven numbers of blank signed cheque leaves bearing Nos. 96409, 96406, 96404, 96405, 96408, 96410 and 96407 of the Dhanalekshmy Bank, Vanchiyoor, Thiruvananthapuram as security to the loan. The opposite parties also obtained the original receipt for the above mentioned Rs. 3,500/- and also the original R.C. Book of the vehicle. It was assured that the above items will be released as and when the loan installments are paid. Some of the repayments were collected from the complainant by the authorized representative of the opposite parties against issuance of the receipts and the others were collected from the SB A/c No. 57.1.44253 of the complainant in the Dhanaleskhmy Bank, Vanchiyoor, Thiruvananthapuram. Due to some financial stringency on few occasions the EMI could not be paid at the exact time. Hence the opposite parties imposed penalty for late payment and this additional amounts were also collected from the complainant in the following installments. The loan was repaid by the complainant vide last receipt dated 29.09.2008 and it was endorsed therein by the collecting agent that the EMI is closed. Thereafter complainant approached the 1^st opposite party and requested to return the original R.C Book, receipt for Rs. 3,500/-, the blank signed cheque leaves and loan closure letter. But the 1^st opposite party is reluctant to release the said items stating that still some amount is due. There is no data or materials or basis for the unlawful claim of the opposite parties. The complainant is not liable to pay any further amount towards the loan. Due to this unlawful attitude of the opposite parties, complainant is put to severe hardships. On several occasions during vehicle inspections the complainant was warned by the traffic police officers for not showing them the original R.C. Book. Complainant was also not able to remit the one time cess introduced by the Government of Kerala due to the non-availability of RC Book. The said remittance was to be made by 26.12.2008. Now it carries fine. Complainant had to undergo several mental harassments from the traffic police officials due to the non-availability of RC book with him. Several visits of the complainant to the 1^st opposite party requesting to release the above items and also to issue loan closure letter for effecting the endorsement in the RC. Book turned futile. Hence the complainant issued registered letter dated 11.08.2009 to opposite parties calling upon them to release the above documents and loan closure letter within 15 days of receipt thereof. Though the said letters were received neither the above documents were released nor any reply given. Opposite parties have committed deficiency in service and unfair trade practice. Complainant suffers mental agony due to the illegal acts of the opposite parties. Complainant has no other remedy than to approach this Forum for getting his grievances redressed.

1^st and 2^nd opposite parties filed their version. Opposite parties admitted that complainant has entered into loan agreement No. 414/024612 on 18.08.2005 and availed finance of Rs. 37,000/- for the purchase of Bajaj CT 100 DLX. The monthly installments to be paid per month is Rs. 1,334/-. The contract period is of 36 months. In the version, opposite party stated the important clause of loan agreement i.e; clause 7 :- The due date for the payment of EMIs shall be as indicated in the application cum agreement form and it is understood that time shall be the essence of the contract. Clause 11(a) The company shall be entitled to recover a sum of Rs. 350/- as delayed payment interest per default per month and Rs. 100/- towards other/collection charges. For this purpose, part of the month shall be treated as a full month of delay. 1^st opposite party states that the complainant has made default in making payment of the agreed installment dues through his bank. 1^st opposite party further states and submits that till date complainant is in arrears of Rs. 10,986/- i.e; Rs. 1,450/- as insurance arrears + Rs. 9,536/- as penal interest. Opposite party submits that complainant himself stated in the complaint that due to some financial stringency on few occasions the EMI could not be paid at the exact time. Most of the ECS presented by the opposite party have returned unpaid from complainant's bank. Complainant is also in arrears of insurance premium which the opposite party has already paid to the insurance company on behalf of the complainant. Opposite party further submitted that as there was default in payment of installment dues, opposite party has charged penal interest as per the terms and conditions of loan agreement for delayed number of months which amounts to Rs. 9,536/-. Opposite party submits that if the complainant pays the legitimate dues of Rs. 10,986/- to the opposite party, then the 1^st opposite party is ready to issue NOC/RC Book, 7 security PDCs (cheque No. 096404 to 096410) and original receipts of Rs. 3,500/- issued towards down payment by the dealer before this Forum.

Complainant and opposite parties filed proof affidavits and cross examined them as PW1 and DW1. Through PW1 Exts. P1 to P4 are marked and through DW1 Exts. D1 and D2 are marked.

Points to be ascertained:-

1. Whether there is deficiency in service or unfair trade practice from the side of opposite parties?

2. If so, reliefs and costs.

Points (i) & (ii):- Complainant is the owner of a motor bike of the make Bajaj CT 100 DLX 17 purchased from Deedi Automobiles, authorized dealer for the 2^nd opposite party. The said vehicle was purchased out of the loan availed from the opposite parties. At the time of availing the loan i.e; on 17.08.2005 the dealer obtained an amount of Rs. 3,500/- from the complainant. The balance amount together with interest was to be repaid in 36 months at the rate of Rs. 1,334/- per month. The loan period ended in August 2008. These are the admitted facts of the case. Complainant stated that due to some financial stringency on few occasions the EMI could not be paid at the exact time. Hence opposite parties imposed penalty for late payment and the additional amounts were also collected from him. The loan was repaid by the complainant vide the last receipt dated 29.09.2008 and it was endorsed therein by the collecting agent that the EMI is closed. Ext. P2(a) is the evidence of that payment dated 29.09.2008. As per this document complainant has paid Rs. 4,002/- as the arrears of installment No. 34,35, and 36. In that document we can see an endorsement that 'EMI Closed' and we can also see that 'P.I pending' i.e; penal interest. And moreover complainant himself admitted that the date of last installment to be paid was on 10.08.2008. Through these payment, the opposite party has not received any amount as penal charges. As per the terms and conditions of loan agreement, Ext. D1, clause 11(a) “The company shall be entitled to recover a sum of Rs. 350/- as delayed payment interest per default per month and Rs. 100/- towards other/collection charges. For this purpose, part of the month shall be treated as a full month of delay”. Complainant accepted and signed in this agreement. But the complainant demanded to return the original RC. Book and other documents from the custody of the 1^st opposite party. 1^st opposite party demanded Rs. 10,986/- from the complainant as total dues for releasing NOC/RC. Book and cheques. Opposite party argued that complainant had defaulted the payment of monthly installments, the 1^st opposite party charged penal interest as per the terms of the loan agreement and such a sum of Rs. 9,536/- stands due from the complainant to the 1^st opposite party as penal interest for delayed payments as on 31.12.2008. Further complainant has to pay Rs. 1,450/- to 1^st opposite party towards insurance arrears. To prove that statement, they had produced Ext. D2. As per Ext. D2 total dues is Rs. 9,536/-. Opposite party has not produced any evidence that they have remitted the insurance premium for the complainant. Complainant has produced receipt for the payment of insurance premium as Exts. P4 series. Exts. P2 to P2(g) series are the payment receipts of installments. From Exts. P2 and P2(a) we can see that opposite party has obtained huge amounts as penal charges on delayed payments. As per the terms and conditions of the loan agreement, complainant shall pay Rs. 350/- as delayed payment interest per default month. In this case complainant paid the last 3 installments on 29.09.2008 as per Ext. P2(g). Hence opposite party is entitled to get Rs. 1,050/- (Rs. 350/- x 3) as penal interest from the complainant as on 29.09.2008. But opposite party demanded Rs. 10,986/- for closing the loan transaction. As per the documents and other evidence before us and from the deposition of complainant and opposite party, we find that there is deficiency in service from the side of 1^st opposite party. 2^nd opposite party has no liability in this case. At the time of requesting the complainant to the 1^st opposite party then itself the 1^st opposite party could clarify the balance amount to be paid as only Rs. 1,050/-, to the complainant and they can demand that amount. Due to that ambiguity complainant has to approach this Forum and thereby complainant has suffered too much mental agony, inconvenience to use the vehicle freely. We find some mistakes from the side of complainant also. Complainant himself is well aware that he has to pay the penal charges to opposite party on final payment date. Without clearing that payment, he demanded the return of documents from the custody of the 1^st opposite party. From the above mentioned discussions, we find that there is deficiency in service from the side of opposite party, i.e; they illegally demanded huge amount to close the loan transaction against the terms and conditions of the agreement.

In the result, complaint is partly allowed. Complainant is directed to pay Rs. 1,050/- to 1^st opposite party and 1^st opposite party shall return the NOC, RC Book and the cheque leaves to the complainant along with Rs. 3,000/- as compensation and costs. Time for compliance one month from the date of receipt of the order. Otherwise 12% annual interest shall be paid for the amount till the date of realization.

A copy of this order as per the statutory requirements be forwarded to the parties free of charge and thereafter the file be consigned to the record room.

Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the Open Forum, this the 31^st day of May 2012.

Sd/- BEENAKUMARI. A : MEMBER

Sd/-

G. SIVAPRASAD : PRESIDENT

Sd/-

S.K. SREELA : MEMBER

jb

C.C. No. 332/2009

APPENDIX

I COMPLAINANT'S WITNESS :

PW1 - Thulasi Kumar. R.G

II COMPLAINANT'S DOCUMENTS :

P1 - Copy of bill dated 18.08.2005 for Rs. 35,927.13

P2 - Copy of receipt dated 17.03.2007 for Rs. 5,000/-.

P2(a) - Copy of receipt dated 03.08.2007 for Rs. 6,102/-.

P2(b) - Copy of receipt dated 15.12.2007 for Rs. 1,334/-.

P2(c) - Copy of receipt dated 03.03.2008 for Rs. 1,334/-.

P2(d) - Copy of receipt dated 15.05.2008 for Rs. 1,334/-.

P2(e) - Copy of receipt dated 07.07.2008 for Rs. 1,334/-.

P2(f) - Copy of receipt dated 11.08.2008 for Rs. 1,334/-.

P2(g) - Copy of receipt dated 29.09.2008 for Rs. 4,002/-.

P3 - Copy of notice dated 11.08.2009 issued by complainant to

opposite party.

P4 - Insurance renewal notice

III OPPOSITE PARTY'S WITNESS :

DW1 - Pradeep. S

IV OPPOSITE PARTY'S DOCUMENTS :

D1 - Application cum agreement

Sd/-

PRESIDENT

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