DATED THE 31st MARCH, 2017
O R D E R
SMT.SMARITA MOHANTY, MEMBER
The present appeal is directed against order dated 30.1.2014 passed by learned District Forum, Koraput at Jeypore in C. C. Case no. 83 of 2013.
The background facts of the case are to the effect that complainant had purchased one Mahindra Bolero DI 2WD 8STR BS2 being financed by O.Ps. vide Agreement No. 1452030 on 28.1.2011 for Rs.4,20,000/- with financial charges of Rs. 57,120/-. The Registration Number of the said vehicle was OR-1OH-4789. As per the agreement complainant had to repay the loan in 20 equal monthly instalment (EMI) @ Rs.23,970/- as first instalment and the rest instalments was fixed @ Rs.23,850/- starting from 28.1.2011 to 25.8.2012. It was alleged that after paying all the loan dues on 20.12.2012 complainant enquired from the office of O.P. no.1 for No Dues Certificate. But she was intimated that a sum of Rs.41,150/- was outstanding to clear the loan and accordingly she deposited the same vide receipt no. 917076302 dated 21.12.2012 towards full and final settlement of the loan dues and requested O.P. to issue No Dues Certificate. But O.Ps. did not respond. It was further alleged that she received a notice from Chennai Arbitrator on 30.1.2013 stating that a sum of Rs.61,138/- was outstanding against her. Complainant intimated O.P. no.1 on 5.3.2013. She was supplied with statement of account showing Rs.20,192/- as a balance to be paid. She intimated Chennai Office of O.P.to resolve the dispute. But they remained silent. Complainant, therefore, filed a complaint case alleging deficiency of service against the O.Ps. seeking direction to issue No Dues Certificate and to terminate hypothecation agreement in respect of her vehicle and to pay Rs.2,00,000/- towards compensation and cost to the complainant.
After notice O.Ps. appeared and jointly filed written version denying the allegations of complainant contended that loan was sanctioned to her for Rs.4,20,000/- with financial charges of Rs.57,120/- to purchase one Mahindra Balero DI 2WD 8STR BS2. It was contended that complainant had to repay the loan dues in 20 EMIs from 28.1.2011 to 25.8.2012 and total repayment amount was Rs.4,77,120/-. Complainant had to pay the EMI on every 25th day of each month. If complainant fails to pay on that day, penal interest shall be levied for the delayed period. It was further contended that complainant failed to pay on the particular date. As such she was charged an outstanding amount of Rs.20,192/-. O.Ps., therefore, prayed to dismiss the complaint case.
After hearing both the parties and going through the materials available on record learned District Forum allowed the complaint in part. O.Ps. were made jointly and severally liable and were directed to issue No Dues Certificate along with other necessary papers of the vehicle in favour of complainant and to pay Rs.10,000/- towards costs to complainant within 30 days from the date of communication of the order.
Being aggrieved by the aforesaid order appellants (O.Ps in the Forum below) has filed the present appeal before this Commission on the grounds that learned District Forum while directing the appellant to issue NOC in respect of the hypothecated vehicle has failed to appreciate that, the relationship between the parties are governed by way of an agreement and the charging of penal interest is also enumerated in the said agreement which stipulates that if the EMI is not paid within the stipulated time then the appellants are entitled to receive AFC (Additional Finance Charges) at the rate of 3% from the respondent. Hence, appellants prayed for setting aside the impugned order.
We heard Mr. R. K. Pattanaik, learned counsel for the appellants. None appeared on behalf of respondent on call.
We perused the record, materials available on record, impugned judgment and order as well as the LCR.
Admittedly, respondent has purchased one Mahindra Bolero DI 2WD 8STR BS2 bearing Registration no. OR-10H – 4789 being financed by appellants – Finance Company. Respondent availed a loan for Rs.4,20,000/- vide agreement no. 1452030 on 28.1.2011. She had to repay the loan amount in twenty monthly instalments along with financial charges of Rs.57,120/- from 28.1.2011 to 25.8.2012.
On perusal of record, it is found that after payment of all the instalments respondent visited appellant no. 1’s office for grant of clearance certificate. She was asked to pay a sum of Rs.41,150/- only to clear the entire loan dues. Accordingly, it was paid vide receipt no. 917076302 dated 20.12.2012. It is further seen that appellant no. 2 had filed an arbitration proceeding against the respondent whereby the respondent was directed to pay a sum of Rs.61,138/- only together with interest at the rate of 3% per month from December, 20, 2012 till the date of realisation. Against the said direction respondent approached appellant no.1 for settlement. Appellants demanded Rs.20,120/- as against late payment charges of EMIs.
Taking into consideration the facts and circumstances of the case, we are of the considered opinion that as respondent had already paid all the EMIs and finance charges, it would be just and proper to charge her of Rs.10,000/- only as overdue charges and after payment of the same, the appellants shall issue no due certificate to respondent.
In the result, the appeal is allowed in part. The respondent is directed to pay Rs.10,000/- only as overdue charges. The payment of compensation of Rs.10,000/- as directed by the District Forum is quashed. Both parties are directed to bear their respective litigation expenses.
Records received from the District Forum be sent back forthwith.
