Chandigarh

DF-II

CC/254/2010

Satyavir Singh - Complainant(s)

Versus

M/s Sundaram Fianace Ltd. - Opp.Party(s)

Comp. in person

24 Aug 2011

ORDER


CHANDIGARH DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-IIPlot No. 5-B, Sector 19-B, Madhya marg, Chandigarh - 160019
CONSUMER CASE NO. 254 of 2010
1. Satyavir SinghS/o Sh. Jodha Ram, R/o # 1655, Sector 15, Panchkula ...........Appellant(s)

Vs.
1. M/s Sundaram Fianace Ltd.through its Branch Manager, SCO 11, Ist Floor, Madhya Marg, Sector 26, Chandigarh2. M/s Sundram Fianace Ltd., H.O.71, Patullos Road,Chennai-600002, through its Managing Director ...........Respondent(s)


For the Appellant :
For the Respondent :

Dated : 24 Aug 2011
ORDER

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DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II

U.T. CHANDIGARH

 

Complaint Case No

:

254 OF 2010

Date  of  Institution 

:

29.04.2010

Date   of   Decision 

:

24.08.2011

 

Satyavir Singh son of Sh.Jodha Ram, R/o H.No.1655, Sector 15, Panchkula.

                                                                                    ---Complainant

 

V E R S U S

 

1]       M/s Sundaram Finance Limited, through its Branch Manager, SCO No.11, Ist Floor, Madhya Marg, Sector 26, Chandigarh.

 

2]       M/s Sundaram Finance Limited, H.O. 71, Patullos Road, Chennai – 600 002, through its Managing Director

 

---Opposite Parties

 

BEFORE:            SHRI LAKSHMAN SHARMA                    PRESIDENT

                        SH.JASWINDER SINGH SIDHU            MEMBER

 

Argued By:            Sh.G.S.Ahluwalia,  Advocate for the complainant

Sh.Vishal Gupta, Advocate for the OPs

 

PER JASWINDER SINGH SIDHU, MEMBER

1]             Complainant (hereinafter referred to as CC for short) has preferred the present complaint against the Opposite Parties (hereinafter referred to as OPs for short) on the ground that the CC has got one TATA Safari vehicle bearing Regd. No.HR-20-F-0006 financed from the OPs for Rs.3.00 lacs.  That the CC has been paying the installments regularly without any fault. Having paid two installments in advance had also handed over 43 cheques, which the OPs duly encashed on presentation to the Bank.  CC has also stated that apart from these, he has also paid few installments in cash. 

                CC claims to have paid full and final loan amount of the OPs and on demand of No Objection Certificate from the OPs, the same was denied.  CC is also aggrieved by the claim of the OPs demanding Rs.20,443/- by issuing a letter dated 09.11.2009. 

                CC has alleged that the demand of the OPs is illegal and a deficiency in service on their part.  Thus, aggrieved CC has sought directions for the issue of N.O.C. along with Rs.50,000/- compensation for causing mental agony, harassment, humiliation and inconvenience.  CC further demands Rs.10,000/- as costs.  

 

2]             On notice, OPs filed their collective version.

                While contesting the claim of the CC, OPs have raised preliminary objections on the ground of liabilities of the CC as per the loan agreement and the Arbitration clause so mentioned in the agreement form and demand dismissal of the complaint as the CC does not fall under the definition of consumer as per Section 2(d) of C.P.Act, 1986. 

                On merits, the OPs have admitted to the fact that a loan amount of Rs.3.00 lacs along with Rs.54,600/- towards finance charges was payable in 60 monthly installments by the CC.  The first installment having commenced on 20.01.2005 and ended on last installment dated 10.12.2009.  The said agreement was executed vide Contract No.WP0664 on 20.1.2005 at its Chandigarh Branch.                  OPs have alleged that the CC failed to adhere to the terms & conditions of the loan agreement, which resulted into accrual of additional amount/interest, which is due and payable by the complainant to keep the while under valid insurance cover.  It is further mentioned that the CC committed default in payments of loan installments and failed to pay installments with regularity in accordance with the schedule despite several demand made by the OPs.

                OPs have mentioned that the CC having failed to inform the OPs about the regular insurance cover of the vehicle in question forced them to apportion the installment amount towards the premium of insurance policy cover taken by them.  That the OPs was fully justified in their act, hence OPs are not liable for any demand made by the CC as per his averments in the present complaint. 

 

3]             Parties led their respective evidences.

 

4]             Having gone through the entire complaint and version of OPs and the evidence of the parties, we are of the considered view that the CC is successful in proving deficiency in service on the part of OPs on the following grounds:-

 

i)         The CC has brought on record the details of the installments paid by him to the OPs on 11,.7.2009, 11.8.2009, 11.9.2009, 13.10.2009, 11.11.2009 and 11.12.2009 vide cheques No. 188404, 188405, 188406, 188407, 1884408 and 188409 as per Page-10 & 11 annexed with the complaint. These documents pertain to the Systems generated data of IDBI of Account No.0131066576500 in the name of the CC.

ii)        CC has also annexured at Page-19 the copy of cover note of the insurance policy purchased by him from United India Insurance Company Limited for his vehicle, which is effective for the period 22.1.2009 upto 21.1.2010. 

iii)       However, OPs have failed to bring on record any communication on their part made to the CC demanding the documents pertaining to the insurance cover of the vehicle in question.  As according to them was obligatory on the part of the CC as per Clause 12.1 of Article 12 of the Loan Agreement entered into by the CC. 

iv)      OPs have also failed to bring on record the details of the amount paid by them in getting the vehicle insured at their end by showing the transfer of money to the Insurance Company on behalf of the CC. 

v)        OPs have also failed to bring on record the policy document purchased by them on behalf of the CC for which they have claimed to have paid the money.

vi)      However, CC has  proved his case by bringing on record the Policy Document (Page-19) whereby the vehicle in question was certainly covered for any loss or eventuality. 

 

5]             On the above observations, we allow the present complaint and hold the demand of Rs.20,443/- and any interest accrued on it as illegal and the same is quashed.  We direct the OPs to release the No Objection Certificate along with relevant documents to facilitate the cancellation of hypothecation with Registering Authority. 

                We also saddle the OPs with the consolidated amount of compensation to the tune of Rs.50,000/- along with Rs.5,000/- as litigation cost. 

                This order be complied with by the OPs within 30 days from the date of receipt of its certified copy, failing which OPs shall be liable to pay an interest @18% p.a. on the total amount of compensation that stands against them after completion of 30 days, besides the cost of litigation.

                Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

24.08.2011                                                                     

                                                           (LAKSHMAN SHARMA)

PRESIDENT

 

 (JASWINDER SINGH SIDHU)

MEMBER

 

 

 


MR. JASWINDER SINGH SIDHU, MEMBERHONABLE MR. LAKSHMAN SHARMA, PRESIDENT ,