Rep.by Branch Manager.                                -        Opposite party      

(By Adv.Kamal Chand)                                        

O R D E R

            By  Smt.PREETHA G NAIR, MEMBER

The complainant has availed loan facility for a vehicle bearing registration number KL-10-S-4083 from the opposite party.  The loan amount is for Rs.3,00,000/- The complainant purchased the vehicle for the purpose of transportation of building material in the vehicle and to earn livelihood.  The loan was regularly paid back by the complainant and as some dues of the vehicle was kept balance, the vehicle was seized by the opposite party and put it into auction and sold  the vehicle to third parties.  The complainant understood that the vehicle is fetched Rs.2,40,000/- in sale.  Moreover the complainant on various occasion paid back a sum of Rs.2,00,000/- to the opposite party.  The opposite  party even after repeated demands not ready to handover the details of accounts to the complainant.  Now the opposite party send communication stating that there is a further balance of Rs.3,67,945/- for the final settlement of the bill.  At the time of taking over of the vehicle opposite party stated that it is for the final settlement of the non payment of the loan account.  The balance amount alleged in the notice of opposite party  is illegal.  The complainant is not bound to pay the illegal demand of opposite party.  The act of opposite party comes into the category of clear deficiency of service.  Hence the complaint prays for an order directing the opposite party to

1. To withdraw the demand in the notice dated 9/3/2011 for an amount of Rs.3,67,945/-
2. Pay Rs.10,000/- as compensation for mental agony and loss
3. Cost of the proceedings to the complainant.

Opposite party filed version stating the following contentions.  Opposite party admitted that the complainant has availed a vehicle loan for Rs.2,80,000/- from the opposite party on 6/5/2008.  At the time of availing  of the loan the complainant has agreed by virtue of loan cum hypothecation agreement to repay the amount in 42 monthly installments.

a)   Rs.10,493/- for 41 installments and

b)   Rs.10,507/- for final installment.

Therefore the total agreed value to be repaid is Rs.4,40,720/- alongwith interest.  Also the complainant is bound to pay delayed payment charges @3% per month for the defaulted amount.  The complainant was never a regular payer and paid only a few installments after that she had never deposited a single pie towards the loan account.  After repeated requests made by the opposite party to pay the loan amount, the complainant surrendered the vehicle. The vehicle was sold for an amount of Rs.2,01,000/- after giving  due notice to the complainant.  But the opposite party received only an amount of Rs.1,90,000/- as the complainant had kept due of Motor Vehicle Workers Welfare Remittance.  Even after the sale of vehicle there are huge arrears of amount from the complainant towards the loan.  On 9/3/2011 there is a balance of Rs.3,67,945/- from the complainant to the opposite party. Even though repeated requests were made by opposite party, the complainant never paid any amount.  The opposite party  sent notice to the complainant to pay the due amount dated 9/3/2011.  After the due receipt of the notice the opposite party filed arbitration proceedings as AC 202/11 and that is now pending.  But receiving the notice instead of paying the amount, the complainant preferred the false complaint by suppressing material facts.  There is no deficiency in service or unfair trade practice on the part of opposite party. Hence the opposite party prayed that dismiss the complaint with cost.

Both parties filed affidavits alongwith documents.  Ext.A1 marked on the side of the complainant.  Ext.B1 to B3 marked on the side of opposite party.

Issues to be considered are

1)    Whether there is any deficiency in service on the part of opposite party ?

2)    If so, what is the relief and cost entitled to the complainant ?

Issue 1 & 2

Admittedly the complainant had availed loan from the opposite party.  The complainant stated that the loan amount is Rs.3,00,000/- and she had paid an amount of Rs.2,00,000/- on various occasion.  No documentary evidence was produced by the complainant to show that she had paid an amount of Rs.2,00,000/-.  In Ext.B3 the statement of account shows that the complainant was a regular defaulter and the total amount received from the complainant is Rs.2,28,150/- upto 27/01/2011.  The opposite party stated that the vehicle  was sold for an amount of Rs.2,01,000/- and received only Rs.1,90,000/- An amount of Rs.11,000/- was remitted towards the due amount of complainant in the Motor Vehicle Workers Welfare Remittance. No documentary evidence was produced by the opposite party to prove that the vehicle was sold for Rs.2,01,000/-.  The complainant has not produced evidence to show that the vehicle was sold for Rs.2,40,000/- In Ext.B2 the original loan cum hypothecation agreement shows that loan amount is Rs.2,80,000/-, interest amount is Rs.1,60,720/- and the total agreed value is Rs.4,40,720/-  The complainant is signed in Ext.B2 agreement.  The complainant has no objection to marking of Ext.B2 document.  In Ext.B3 due amount is Rs.3,67,945/- In Ext.A1 shows that the opposite party demanded Rs.3,67,945/- form the complainant.  No evidence was produced by the complainant to prove that she had paid the full loan amount. 

In the above discussions we are of the view that the complainant is miserably failed to prove her case.  In the result the complaint dismissed.

Pronounced in the open court on this the 29^th day of  October 2011.

   Sd/-

Seena.H

President

    Sd/-

Preetha G Nair

Member

               Sd/-

Bhanumathi.A.K.

Member

APPENDIX

Exhibits marked on the side of the complainant

Ext.A1 – Notice issued by opposite party to the complainant dated 9/3/2011

Exhibits marked on the side of the opposite party

Ext.B1 –  Certified copy of Power of Attorney

Ext.B2 –  Original loan cum hypothecation agreement

Ext.B3 – Original statement of account showing actual dues.