By Smt. C.S. Sulekha Beevi, President,<br /> <br /> <br /> 1. Complainant is aggrieved that opposite party has failed to issue hire purchase termination letter even after repayment of finance availed from opposite party for his vehicle KL-02/B 3667.<br /> <br /> 2. Opposite party filed version admitting the hire purchase transaction. Jurisdiction of the Forum to try this complaint is disputed and it is stated that any dispute with respect to the hire purchase agreement can be adjudicated by Courts in Chennai only. It is also submitted that complainant had<br /> <br /> <br /> availed finance of Rs.90,000/- and has not repaid the last three instalments. That a balance of Rs.17,700/- is still due from the complainant along with additional hire charges. Opposite party is willing to issue Clearance Certificate if complainant remits the defaulted amount along with additional hire charges and incidental expenses.<br /> <br /> 3. Evidence consists of affidavits filed by both sides. Exts.A1 to A4 marked on behalf of complainant. Exts.B1 to B5 marked on the side of opposite party.<br /> <br /> 4. Opposite party contends that this Forum has no jurisdiction to entertain the complaint relying upon clause 27 and 28 of the hire purchase agreement which is Ext.B1. Clause 27 states that all disputes shall be settled by arbitration and the venue of arbitration shall be Chennai. Clause 28 states that in case of litigation all parties shall submit to the jurisdiction of Courts at Chennai only. It is settled position of law that inspite of arbitration clause in an agreement Consumer Forum can adjudicate a matter. Even though it is stated in Ext.B1 that only Courts at Chennai have jurisdiction, this condition is not enforceable since parties cannot forfeit the jurisdiction of Consumer Forum by agreement. Complainant has affirmed that an agent of opposite party Rinsh Auto Consultant stationed at Malapuram arranged the transaction with opposite party. Ext.A4 is the visiting card of this agent. Opposite party has not specifically denied the part of cause of action alleged by complainant. For the above reasons we hold that this Forum has jurisdiction to entertain this complaint.<br /> <br /> 5. The hire purchase transaction is admitted by both sides. According to complainant full amount as per the agreement has been repaid. The loan amount advanced is Rs.90,000/-. The total amount to<br /> <br /> <br /> be repaid is Rs.1,19,000/-. Opposite party resists the complaint for the reason that complainant has repaid only Rs.1,01,300/- and that Rs.17,700/- is due as balance from the complainant being the last three instalments. Opposite party relies upon Ext.B 1 to B5 documents. Ext.B1 is the photo copy of hire purchase agreement dated, 23-11-04. Ext.B2 is the consideration letter which shows that the amount financed is Rs.90,000/- and the total amount to be repaid is Rs.1,19,000/-. The instalments are equated to 10 instalments of Rs.5,900/- per month. Ext.B5 is the statement of accounts. As per Ext.B5 18th, 19th and 20th instalments of Rs.5,900/- each remains unpaid. In Ext.B5 the total amount due is shown as Rs.23,660/- (Three instalments of Rs.17,700/- + default charges of Rs.3,960/- + Expenses of Rs.2000/-). Thus according to opposite party complainant is liable to pay Rs.17,700/- towards instalments. Complainant contends that the last three instalments were paid by demand draft dated, 03-5-06 and that this amount was adjusted by opposite party towards additional hire charges. No evidence is adduced by complainant to prove this. In Ext.A3 which is the instalment payment book the 18th, 19th and 20th instalments are unpaid. In Ext.A3 the 15th, 16th and 17th instalments are noted as paid on 06-4-06, Complainant has not produced any receipt/document of the payment made on 06-4-06. In Ext.B5 the payment of 15th 16th and 17th instalment is made on 06-5-06 vide the demand draft dated, 03-5-06. This is further supported by Ext.B4 which is a letter written by complainant to opposite party that demand draft dated, 03-5-06 for Rs.17,700/- is payment towards 15th, 16th and 17th instalments. Ext.B4 was filed along with version on 10-11-2006. Complainant has not denied or disputed Ext.B4. Opposite party has established and proved that complainant has not repaid the last three instalments as per hire purchase agreement. Opposite party is liable to issue the hire purchase termination letter on payment of the entire amount as per Ext.B1. The schedule of repayment reveals that the instalments were fixed adding interest to the principal amount from the date of debt till the last instalment. <br /> <br /> Dimunition of principal is not taken into consideration. The additional hire charges claimed by opposite party would thus be interest upon interest which is not allowable by law. We hold that complainant is entitled to get hire purchase termination letter on payment of Rs.17,700/- being the 18th, 19th and 20th instalments.<br /> <br /> 6. In the result we partly allow the complaint. We order opposite party to issue hire purchase termination letter to the complainant on payment of Rs.17,700/- (Rupees Seventeen thousand seven hundred only) by complainant to opposite party within two months from the date of this order. On making the above payment if opposite party fails to issue hire purchase termination letter on request made by complainant copy of this order will be communicated to the concerned Regional Transport Officer who on receipt of copy of this order shall cancel the endorsement in favour of opposite party in the Registration Certificate of vehicle No.KL-02/B 3667.<br /> <br /> Dated this 17th day of April, 2008.<br /> <br /> <br /> C.S. SULEKHA BEEVI, PRESIDENT<br /> <br /> <br /> <br /> <br /> E. AYISHAKUTTY, MEMBER<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> APPENDIX<br /> <br /> <br /> Witness examined on the side of the complainant : Nil <br /> Documents marked on the side of the complainant : Ext.A1 to A4<br /> Ext.A1 : Photo copy of the Registration Certificate in favour of Vehicle <br /> No.KL-2/B 3667.<br /> Ext.A2 : Photo copy of the demand draft for Rs.17,700/- dated. 03-5-06<br /> in the name of opposite party. <br /> Ext.A3 : Payment chart with instructions in the name of complainant.<br /> Ext.A4 : Agent's visiting card.<br /> Witness examined on the side of the opposite parties : Nil<br /> Documents marked on the side of the opposite parties : Ext,B1 to B5<br /> Ext.B1 : Photo copy of the hire purchase agreement dated, 23-11-2004 <br /> between opposite party and complainant.<br /> Ext.B2 : Photo copy of the consideration letter dated, 23-11-04 sent by<br /> complainant to opposite party.<br /> Ext.B3 : Registered lawyer notice dated, 03-10-06 sent by opposite<br /> party's counsel to complainant.<br /> Ext.B4 : Photo copy of the letter dated, 06-5-06 sent by complainant to<br /> opposite party.<br /> <br /> Ext.B5 : Statement of account as on 23-07-06 issued by opposite party<br /> to complainant.<br /> <br /> <br /> <br /> <br /> <br /> C.S. SULEKHA BEEVI, PRESIDENT<br /> <br /> <br /> <br /> <br /> <br /> E. AYISHAKUTTY, MEMBER<br />