DATE OF FILING :05/05/17
IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 30th day of May 2018
Present :
SRI. S. GOPAKUMAR PRESIDENT
SRI. BENNY. K. MEMBER
CC NO. 86/2017
Between
Complainant : Jalaludeen, S/o Syed Muhammad,
Arampulickal House,
Ayyappancovil P.O.,
Marykulam, Idukki District – 685 507
(By Adv: K.R.Prathapan and Adv.Jijo Joseph)
And
Opposite Party : 1 . Reliant Hire Purchase Company,
City Tower Building, Kattappana P.O.,
Idukki District,
Represented by its Manager.
(By Adv:Babichen V.George)
2 . Reliant Hire Purchase Company Limited,
KJK Estate, A.M.Road, Kothamangalam P.O.,
Kothamangalam – 686 691,
Represented by its Managing Director.
O R D E R
SRI. BENNY. K. (MEMBER)
The case of the complainant is that,
The complainant had availed a loan for Rs.325000/- from the opposite parties for his vehicle Mahindra Pickup van bearing Registration No. KL-3T-9650 in the year of 2014. He had agreed to repay the amount in 36 monthly instalment of Rs.12,500/- each. The opposite party obtain certain signed printed paper and blank signed cheque leaves of the complainant and guarantor as security for the loan amount.
The complainant was very regular in repaying the instalments, 19 instalments were paid, mean time complainant's wife become ill and he was forced to raise huge amount for the treatment, this effected the repayment hence the complainant was unable to remit few instalments in time.
(Cont....2)
-2-
Thereafter, the complainant approached the opposite parties for settling the loan account, opposite parties had charged huge amount as penal interest and not ready to give receipt for the remitted amount.
The opposite parties thereafter tried to take forceful possession of the vehicle. The complainant is not at all liable to pay any amount as default charges and over due charges. The act of the opposite party had caused irresponsible injury and hardship to the complainant. Hence the complainant approached before this Forum for restraining the opposite parties from taking forceful possession of vehicle and direct to avoid over due charges.
In their written version opposite parties had admitted that the complainant entered into a loan agreement to finance his vehicle bearing Registration No. KL-3T-9650 and the loan amount is Rs.38,000/- payable in 36 monthly instalments. The interest charged as per the contract. The complainant is highly irregular in repayment, he paid only 19 instalments. This opposite parties never demanded high or exorbitant interest from the complainant, the rate of interest was 13.10% which is agreed by the complainant. The complainant and his guarantors had executed the agreement duly signed, the opposite party is claiming the amount only which they are legally entitled. The interest rate was specifically stated in the loan agreement and the instalment was scheduled, accordingly the complainant and his guarantors had affixed their signature after knowing all these terms and conditions.
The point that arose for consideration is whether there is any deficiency in service from the part of opposite parties, and if so, for what relief the complainant is entitled to ?
The evidence consist of oral testimony of PW1 and Ext.P1 and Ext.P2 were marked from the side of the complainant.
The Point:- The complainant was examined as PW1. He had availed a loan of Rs.325000/- from the opposite parties for finance his vehicle bearing Registration No. KL-3T-9650 is marked as Ext.P1. He had agreed to repay the amount in 36 monthly instalments of Rs.12500/- each is marked as Ext.P2.
(Cont....3)
-3-
He was very regular in repaying the same and 19 instalments were paid mean time complainant's wife become ill and he was forced to spent huge amount for the treatments this effected the repayment. Thereafter complainant approached the opposite parties for closing the loan account, but the opposite parties demanded huge amount as penal and other charges and opposite parties are trying to take forceful possession of the vehicle.
In their written version opposite parties had admitted that the complainant entered into a loan agreement for finance his vehicle and the loan amount was Rs.3,80,000/- payable in 36 monthly instalments. The complainant is highly irregular in repayment, he paid only 19 instalment. This opposite party never demanded high or exorbitant interest from the complainant. The only dispute regarding the default charge and penal interest. The complainant is agreed to pay the default charges for the delayed payment. Opposite parties stated that the complainant was a chronic defaulter. Since the complainant was not ready to pay the balance instalments in time.
The opposite parties has not produced any authentic documents from RBI or Government to show that they can charge huge and exorbitant penal interest as default charges, it is illegal and unfair trade practice. Hence we fix as interest of 12% per annum for defaulted instalments for defaulted period and cheque bonus charges as Rs.200/-.
Hence petition partly allowed, the opposite parties are directed to settle the loan account of the complainant's vehicle by charging only 12% per annum for defaulted instalment for the defaulted period and order to return all documents collected as security for the loan. Complainant is also directed to pay the balance instalments as per new statement of account within 2 months from the date of the receipt of the copy of this order, failing which opposite parties can initiate appropriate action against the complainant.
Pronounced in the Open Forum on this the 30th day of May, 2018.
SRI. BENNY. K. (MEMBER)
SRI. S. GOPAKUMAR (PRESIDENT)
(Cont....4)
-4-
APPENDIX
Depositions :
On the side of the Complainant :
PW1 - Jalaludeen
On the side of the Opposite Party :
Nil
Exhibits :
On the side of the Complainant :
Ext.P1 - The copy of certificate of registration
Ext.P2 - The Receipts
On the side of the Opposite Party :
Nil.
Forwarded by Order,
SENIOR SUPERINTENDENT
