DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION SAS NAGAR (MOHALI)
Consumer Complaint No.275 of 2016
Date of institution: 13.05.2016 Date of decision : 02.12.2021
Dilbagh Singh S/o Sh.Harpal Singh, R/o House No. 185, Amardeep Nagar, Near Punjab Farm, Tehsil and Post office Darabassi, District Mohali.
…….Complainant
Versus
M/s Shri Ram Transport Finance Company Ltd, Administrative Office,101-105, Shiv Chamber, Sector -11, C.B.D, Belapur, Navi Mumbai-400614 through its authorized person.
Branch Office:- M/s Shri Ram Transport Finance Company Ltd, SCF No.101-102, 2nd floor, Phase-XI, Mohali through its authorized person.
……..Opposite Parties
Complaint under Consumer Protection Act.
Quorum: Shri Sanjiv Dutt Sharma, President.
Ms. Gagandeep Gosal, Member
Present: None for the complainant
Sh. Puneet Tuli, cl for the OP.
Order dictated by :- Shri Sanjiv Dutt Sharma, President.
Order
The present complaint is filed under Consumer Protection Act, by the complainant (hereinafter referred as ‘CC’ for short) against the Opposite Parties (hereinafter referred as ‘OPs’ for short), on the ground that the OP is running the business of finance of the vehicles and had been financing the vehicles of various persons by providing them loan. The CC accordingly approached the Branch Office of the OP for obtaining loan to the tune of Rs. 5,50,000/-. The loan was sanctioned at interest rate 10% per annum vide loan agreement No. AG No. CHNDG0101200001. It is alleged that as per loan agreement, the total amount payable was Rs.7,70,589/- to be paid in 45 installments. Accordingly the CC purchased the vehicle bearing no. HR-55B-0714. It is alleged that the CC paid the loan installments regularly along with interest. It is alleged that the CC has paid the last and final installment of the loan to the tune of Rs. 70,000/- through cheque bearing No. 000068. The OP also acknowledged the same and sent message on the mobile phone of the CC. As per the knowledge of the CC, he has paid more than Rs. 8,53,000/-.
The grievance of the CC is that since he has cleared all the installments of the loan amount till 28.01.2015, the OP did not issue no objection certificate to the CC, resultantly the hypothecation could not be removed from the registration certificate and the CC was unable to sell his vehicle due to entry of hypothecation. Even the depreciation of the vehicle had started increasing. Despite several requests to the OP, the OP did not issue NOC to the CC.
Thus alleging deficiency in service on the part of the OP, the CC has sought direction to the OP to issue NOC for his vehicle bearing No. HR- 55B 0714 , to pay him compensation to the tune of Rs. 1,00,000/- for depreciation loss of the vehicle, Rs. 50,000/- for mental harassment and agony and Rs. 15,000/- as litigation cost. The complaint is signed and also supported by an affidavit.
2. In reply the OP has admitted that the CC has obtained the loan but the OP has opposed the complaint of the CC on the ground that CC stood as a guarantor in another loan facility which is in the name of Lakhwinder Singh R/o Ward No. 13, Mohalla Meera Mohali VPO and Tehsil Derabassi District Mohali, in which the borrower Lakhwinder Singh had defaulted the installments many times from the very beginning. The CC had stood guarantor for the defaulter Lakhwinder Singh and has stepped into the shoes of the borrower and is liable to pay the dues to the OP. Along with the written version, the OP has cited one judgment of Hon’ble Supreme Court of India in case titled as Syndicate Bank versus Vijay Kumar, AIR 1992 SC 1066. Thus the OP has claimed that it has the right to withhold the NOC of the CC since he is a guarantor of one Lakhwinder Singh in another loan case.
Written version of the OP is not signed and is only signed by an advocate and the same is also not verified.
3. The complainant has tendered in evidence affidavit along with documents Ex C-1 to Ex C-44, On the other hand the OP has tendered in evidence affidavit along with one document Ex OP/1.
4. We have heard Ld. counsel for the OP and gone through the record minutely.
5. We have perused the affidavit of Naresh Kumar, authorized signatory of the OP and it is a word to word repetition of written version filed by the OP.
6. The point in controversy before us is whether the OP had a right to withhold the no objection certificate of the CC of the vehicle bearing no. HR-55B-0714 for which he had already paid all the installments to the OP on the ground that CC is a guarantor in some other case. Ld. counsel for the OP has cited one judgment of Hon’ble Supreme Court of India in case titled as Syndicate Bank versus Vijay Kumar, AIR 1992 SC 1066 wherein he has tried to compare this Private finance company with the working of the mercantile system of nationalized banks, where the banks generally keep lien on various FDRs and other accounts of the account holders.
7. We feel that the private companies like the OP who charge such an exorbitant rate of interest by flouting the RBI guidelines cannot compare themselves with the nationalized banks. OP had no right to withhold the no objection certificate or use coercive methods on such innocent borrowers like the CC.
8. We feel that the OP cannot make a general lien over the CC and cannot keep his NOC with him once all the installments are paid by the CC. The payment of all the installments is also admitted by the OP.
9. In view of the above discussion, we feel that the deficiency in service on the part of the OP is writ large on the file. Moreover there is a clear cut absence of such type of contract between the OP and the CC that they have right to keep the NOC of the CC if the CC becomes guarantor in some other loan case.
10. Accordingly, we allow the present complaint and direct the OP to issue NOC to the CC within 30 days from the date of receipt of certified copy of the order. The OP is further directed to pay a consolidated compensation to the tune of Rs.50,000/- to the CC for mental agony and harassment. Free certified copies of this order be sent to the parties. File be indexed and consigned to record room.
Announced
December 02, 2021
(Sanjiv Dutt Sharma)
President
I agree.
(Ms. Gagandeep Gosal)
Member
