DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, KOZHIKODE

PRESENT: Sri. P.C. PAULACHEN, M.Com, LLB    : PRESIDENT

Smt. PRIYA.S, BAL, LLB, MBA (HRM) :  MEMBER

Sri.V. BALAKRISHNAN, M Tech, MBA, LL.B, FIE: MEMBER

Monday the 29^th day of April 2024

CC.183/2022

Complainant

Ashraf Chelattu,

S/o. Kunhikkutti Ali,

Kannankutti Vayal (HO),

                        Kuruvissery.P.O,

Kozhikode - 673010

( By Adv. Sri. Suneesh Mamiyil)

Opposite Parties

1.               M/s. ICICI Bank,

YMCA Branch, No. 6265,

                        Nadakkavu.P.O,

Kozhikode - 673011

2.               The Manager,

M/s. ICICI Bank,

YMCA Branch,

No. 6265, Nadakkavu. P.O,

Kozhikode – 673011

( By Adv. Sri. M. Shahier Singh)

ORDER

By Sri. P.C. PAULACHEN  – PRESIDENT              

            This is a complaint filed under Section 35 of the Consumer Protection Act, 2019.

2. The complainant is the owner of Maruthi Alto car bearing registration number KL-11-Y-3376. He purchased the vehicle availing hire purchase facility from the opposite parties. As per the repayment chart, the repayment is to start on 04/10/2006 and ends on 05/08/2013. He was in regular payment of the hire purchase instalments without any default. As on 2/08/2013 he had repaid the entire amount and the loan amount balance was zero.
3. Thereafter, the first opposite party had agreed to release the hypothecation. But no action was taken by the first opposite party in this regard. He has been approaching the first opposite party several times for cancellation of the hypothecation for the last 9 years. On all these occasions, the first opposite party was postponing  the matter under one pretext or other. On 28/02/2022 he contacted the first opposite party as the registration certificate of the vehicle had to be renewed.  Then the second opposite party informed him that he had to remit Rs. 2,162/- more towards default interest and then only the hypothecation can be cancelled. In fact, he has remitted the entire loan amount and no default interest can be levied from him. The act of the opposite parties has caused mental agony and hardship to him, besides monetary loss. Hence the complaint to direct the opposite parties to cancel the hypothecation and pay compensation of Rs. 1,00,000/-. It is also prayed that he may be permitted to remit Rs. 2,162/- as a conditional deposit before this Commission and to direct the opposite parties to cancel the hypothecation.
4.  The notice issued from this Commission on 08/08/2022 was  duly served on the opposite parties on 16/08/2022. But the opposite parties did not respond to the notice and hence they were set ex-parte. Later on 10/10/2022 the opposite parties filed written version along with IA No. 325/2022 to set aside the ex-parte order and to receive the version. IA No. 325/2022 was dismissed by this Commission as per order dated 12/12/2023.   
5. The points that arise for determination in this complaint are;

1. Whether there was any unfair trade practice or deficiency of service on the part of the opposite parties, as alleged?
2. Reliefs and costs.

6. The complainant was examined as PW1 and Exts A1 to A3 were marked.  
7. Heard.
8. Point No.1:-  The complainant has approached this Commission alleging unfair trade practice and deficiency of service on the part of the opposite parties. The specific allegation is that the opposite parties failed to cancel the hypothecation of the vehicle demanding default interest of Rs. 2,162/-, even though the entire loan amount as per the hire  purchase agreement was remitted by the complainant without any default.
9. PW1, who is none other than the complainant, has filed affidavit in terms of the averments in the complaint and in support of the claim. Ext A1 is the copy of the registration certificate, Ext A2 is the copy of the amortization schedule and Ext A3 series are payment receipts.
10. The evidence of PW1 stands unchallenged. There is no contra evidence to disprove the claim. The case of the complainant stands proved through the  testimony of PW1 and Exts A1, A2 and A3 series.
11.  It is averred in the affidavit of PW1 that during the pendency of the complaint, the opposite parties have cancelled the hypothecation even without   collecting any penal interest. So the first and third prayer in the complaint has become infructuous . The remaining prayer is for compensation for the mental agony, hardship and inconvenience suffered by the complainant.
12. The act of the opposite party in not cancelling the hypothecation despite the closure of the loan as per the hire purchase agreement constitutes unfair trade practice and deficiency of service. It is in evidence that repeated requests of the complainant to the opposite parties to cancel the hypothecation have fallen on deaf ears and it was cancelled only after the institution of the present complaint. Undoubtedly, the complainant was put to gross mental agony, hardship and inconvenience due to the negligence and irresponsible attitude and conduct of the opposite parties,   for which, he is entitled to be compensated adequately.  Considering the entire facts and circumstances, we are of the view that a sum of Rs. 35,000/- will be reasonable compensation in this regard. The complainant is also entitled to get Rs. 5,000/- as cost of the proceedings. The opposite parties are jointly and severally liable.
13. Point No. 2:- In the light of the finding on the above point, the complaint is disposed of as follows;

                  a)  CC.183/2022 is allowed in part.

b) The opposite parties are hereby directed to pay a sum of Rs. 35,000/- (Rupees thirty five thousand only) to the complainant as compensation for the mental agony and hardship suffered.

c)  The opposite parties are directed to pay a sum of Rs. 5,000/- (Rupees five thousand only) as cost of the proceedings to the complainant. 

d) The payment as afore stated shall be made within 30 days of the receipt of copy of this order, failing which, the amount of Rs. 35,000/- shall carry an interest of 9% per annum from the date of this order till actual payment.

Pronounced in open Commission on this, the 29^th   day of April, 2024.

Date of Filing: 27.07.2022

                                               Sd/-                                                          Sd/-                                                 Sd/-

                                      PRESIDENT                                              MEMBER                                       MEMBER

APPENDIX

Exhibits for the Complainant :

Ext.A1 – Copy of the registration certificate.

Ext.A2 – Copy of the amortization schedule.

Ext.A3 Series – Payment receipts.

Exhibits for the Opposite Party

Nil.

Witnesses for the Complainant

PW1 -  Ashraf Chelattu (Complainant)

                                                  Sd/-                                                                    Sd/-                                                Sd/-

                                        PRESIDENT                                                         MEMBER                                       MEMBER

True Copy,      

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                                                                Assistant Registrar.