By Smt. C.S. Sulekha Beevi, President,
1. Complainant availed a vehicle finance of Rs.1,20,000/- from first opposite party by entering into a hire purchase agreement upon his vehicle KL-10B 754 Tata Lorry. As per the repayment chart complainant was directed to repay Rs.1,75,000/- in 30 instalments. Complainant repaid the instalments as agreed and stipulated in the chart. Complainant had to remit Rs.13,400/- by way of balance and approached opposite party on 03-7-2008 to remit this amount and close the loan. But opposite party demanded Rs.28,000/- as balance and refused to accept Rs.13,400/- and failed to issue the hire purchase termination letter. That complainant is not liable pay any amount other than Rs.13,400/-. Complainant alleges deficiency in service. Hence this complaint.
2. First opposite party filed version directly along with a photocopy of the hire purchase agreement. Bereft of the superfluous averments first opposite party submits that complainant defaulted the instalments and is liable to pay default charges of Rs.13,359.60 apart from Rs.13,400/-. It is stated that total of Rs.28,365/- is due from the complainant. That complainant is not entitled to any reliefs. Second opposite party was impleaded as per orders in I.A.237/09. Version was filed by second opposite party stating that the dispute is solely between complainant and first opposite party.
3. Evidence consists of the affidavit filed by complainant and Exts.A1 and A2 marked for him. No evidence adduced by opposite parties.
4. It is seen from Ext.A2 repayment chart that complainant has to repay the amount in 30 instalments. According to opposite party Rs.13,400/- is due towards the principal as per the agreement. It is further stated by opposite party that complainant has to pay default charges of Rs.13,359.60. It is also the case of opposite party that an amount of Rs.1,605.57 is due towards compensation charges. That thus total amount of Rs.28,365.17 (Rs.13,359.60 + Rs.13,400/- + Rs.1,605.57) is due from the complainant. Complainant admits that there is a balance of Rs.13,400/- to be repaid as per the repayment chart. It is his case that the agent of opposite party refused to receive this amount and demanded Rs.28,000 to close the loan. On perusal of the repayment chart it is seen that opposite party has calculated interest on flat rate basis. The diminution in principal has not been considered at all. Hence charging further amounts as default interest will amount to collection of interest upon interest which cannot be allowed in law. Thus the demand of Rs.13,359/- as default charges by opposite party is unsustainable. We cannot understand on what basis opposite party has calculated compensation charges. No such stipulation is seen in the agreement. The demand for such amount is therefore illegal. We are constrained to hold that complainant is liable to pay only Rs.13,400/- as balance towards the loan. Demanding illegal amount is deficiency in service. We find opposite party deficient in service.
5. In the result we allow the complaint and direct that complainant shall pay Rs.13,400/- (Rupees Thirteen thousand four hundred only) by way of demand draft to first opposite party within one month from the date of receipt of copy of this order. Within one month of receiving the demand draft first opposite party shall issue hire purchase termination letter in favour of complainant, failing which on application made by the complainant a copy of this order will be communicated to second opposite party who on receiving such copy shall cancel the finance endorsement in the Registration Certificate of the vehicle KL10-B-754. No order as to costs. Dated this 3rd day of October, 2009.
Sd/- C.S. SULEKHA BEEVI, PRESIDENT
Sd/- MOHAMMED MUSTAFA KOOTHRADAN, Sd/- MEMBER E. AYISHAKUTTY, MEMBER
APPENDIX
Witness examined on the side of the complainant : Nil Documents marked on the side of the complainant : Ext.A1 and A2 Ext.A1 : Receipts (21 Nos.) received from first opposite party to complainant. Ext.A2 : Hire Rental Payment chart received from first opposite party to complainant. Witness examined on the side of the opposite parties : Nil Documents marked on the side of the opposite parties : Nil
Sd/- C.S. SULEKHA BEEVI, PRESIDENT
Sd/- MOHAMMED MUSTAFA KOOTHRADAN, Sd/- MEMBER E. AYISHAKUTTY, MEMBER
......................AYISHAKUTTY. E
......................C.S. SULEKHA BEEVI
......................MOHAMMED MUSTAFA KOOTHRADAN | | 
