Date of filing: 30.4.2012.
Date of Dispotal:20.12.2012
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM - II:
VIJAYAWADA, KRISHNA DISTRICT
Present: SRI A. M. L. NARASIMHA RAO, B.SC., B. L., PRESIDENT
SMT N. TRIPURA SUNDARI, B. COM., B. L., MEMBER
THURSDAY, THE 20th DAY OF DECEMBER, 2012.
C. C. No. 80 OF 2012.
Between:
Nama Srinivas @ Srinu, S/o Satyam, Hindu, 35 years, R/o Vegetable Vendor, R/o Door No.24-12-19, Sambamurthy Road, Bavajipet, Vijayawada.
….. Complainant
And
Shri Ram Transport Finance Co., Limited, Rep., by its Branch Manager, Office at 54-15- 4/A, Zoom Complex, 3rd Floor, Near Vinayak Theater, Vijayawada – 520 008.
….. Opposite Party.
This complaint is coming before us for final hearing on 05.12.2012 in the presence of Sri Beeram Subba Rao, Counsel for complainant and of Sri .Rajasekhar, Counsel for Opposite Party and upon perusing the material available on record, this Forum delivers the following:
ORDER
(Delivered by Hon’ble Member Smt N.Tripura Sundari)
This complaint is filed under Section 12 of the Consumer Protection Act,1986.
1. The averments of the complaint are in brief:
The complainant availed financial assistance from the opposite party for purchase of a three wheeler goods vehicle bearing registration No.AP-16TB-3146 under hire purchase agreement dated 5.9.2009. The complainant has to repay the agreed about in 27 equated monthly instalments at Rs.5,300/-. Since then the complainant used the vehicle and paid some monthly instalments amounting Rs.70,000/- regularly. He has to pay Rs.30,000/- along with interest. While so on 15.10.2011 the agents of the opposite party seized the complainants vehicle without any prior intimation or notice and demand to pay the entire due amount immediately otherwise the vehicle would be sold or transferred. The opposite party without prior notice seized the vehicle, due to that the complainant sustained monetary loss and suffered mental agony and loss of repudiation. The complainant requested the opposite party to settle the matter but the opposite party did not do so. Then the complainant got issued a legal notice dated23.2.2012 demanding the opposite party to deliver the possession of his vehicle on good condition. The opposite party received the notice and kept quiet. Hence the complainant filed this complaint praying the Forum to direct the opposite party to release his vehicle in good condition, to pay Rs.50,000/- towards compensation and Rs.50,000/- towards mental agony and to pay costs. 2. The version of the opposite party is in brief:
The opposite party denied all the allegations of the complaint and submitted that the complainant obtained a loan of Rs.1,09,000/- towards loan amount and Rs.34,333/- towards finance charges total agreement value is Rs.1,43,333/- which are payable in27 monthly instalments being at the rate of Rs.6,110/- for 1st instalment and being at the rate of Rs.5,278/- for the next 25 instalments and being at Rs.5,273/- for the last instalment. He executed the agreement in favour of the opposite party and agreed to abide the terms and conditions of the agreement. The complainant has paid only a sum of Rs.70,850/- towards the total amount agreed and became dues of arrears of instalments to the opposite party as such the opposite party has taken the possession of the vehicle after due intimation and requested the complainant to pay the arrears of instalments. But the complainant did not do so inspite of several reminders and requests. As there is no option and also in order to mitigate the loss, the opposite party sold the vehicle and appropriated the sale proceeds to the account of the complainant. He is not paying the monthly instalments regularly. Having full knowledge about the same, kept silent for all these months, to avoid the payment which is legally liable to pay to the opposite party, the complainant making false allegations. The complainant
requested time to settle the contract and now creating false story. There is no deficiency in service on the part of opposite party towards the complainant and prayed to dismiss the complaint with costs.
3. On behalf of the complainant he filed his affidavit and got marked
Ex.A.1 to Ex.A.4 and on behalf of the Sri Yadala Koteswara Rao, Senior Executive of opposite party filed his affidavit and got marked Ex.B.1 to Ex.B.4 and on behalf of the 3rd party X.1 and X.2 are marked. 4. Heard and perused.
5. Now the points that arise for consideration in this complaint are:
1. Whether there is any deficiency in service on the part of the opposite party towards the complainant in not giving prior intimation before seizing the vehicle or not? 2. If so is the complainant entitled for any relief?
3. To what relief the complainant is entitled?
POINTS 1 AND 2:-
6. On perusing the documents in hand the plea of the complainant is that he availed
financial assistance from the opposite party for purchase of three wheeler goods vehicle registration under Ex.A.1 bearing No.AP-16 TB-3146 under hire-purchase agreement dated 5.9.2009. He has to pay the said amount in 27 equated monthly instalments at Rs.5,300/-. Since then he used the vehicle and paid some monthly instalments under Ex.A.2 an amount Rs.70,850/-. He has to pay Rs.30,000/- along with interest. On 15.10.2011 the agent of the opposite party seized his vehicle without any prior intimation or notice and demand to pay the entire due amount immediately otherwise the vehicle would be sold or transferred. The complainant requested the opposite party to settle the matter but the opposite party did not do so. Then he got issued a legal notice under Ex.A.4 dated 23.2.2012 demanding the opposite party to deliver the possession of his vehicle in good condition. The opposite party received the notice under Ex.A.4 and kept quiet. Due to seizing of his vehicle, he sustained monetary loss and suffered mental agony and lost his repudiation.
7. The defence of the opposite party that the complainant obtained a loan of Rs.1,09,000/- towards loan amount and Rs.34,333/- towards financial charges total
agreement value is Rs.1,43,333/- payable in 27 monthly instalments at the rate of Rs.6,110/- for 1st instalment and Rs.5,278/- for the next 25 instalments and Rs.5,273/- for the lost instalment. He executed the agreement in favour of the opposite party and agreed to abide the terms and conditions of the agreement under Ex.B.1. The
complainant had paid only a sum of Rs.70,850/- towards the total amount agreed and became dues of arrears of instalments to the opposite party. As such, the opposite party has taken the possession of the vehicle after due intimation under Ex.B.2 dated 27.10.2011 and requested the complainant to pay arrears of instalments. As there was no response from the complainant, in order to mitigate the loss, the opposite party sold the vehicle and appropriated the sale proceeds to the account of the complainant under Ex.B.3. He is not paying the monthly instalments regularly. Ex.B.4 shows the same. The complainant requested time to settle the contract but did not do so.
8. On hearing the both parties and on perusing the documents we, the Forum
noticed in Ex.A.2 that the complainant made irregular payments to the opposite party in various dates and various amounts. The opposite party seized the vehicle of the complainant as the complainant did not pay the instalments regularly. The opposite party gave telegram notice Ex.B.2 about the seizing of the vehicle of the complainant on 27.10.2011 and it was received on 30.10.2011. As per Ex.B.4 the opposite party received instalments amount of Rs.70,850/- upto 25.6.2011 and the vehicle sale amount Rs.65,000/- was credited to the complainant’s account on 06.12.2011. So the net amount received by the opposite party is Rs.70,850/- + 65,000/- = Rs.1,35,050/-. The opposite party calculated the financial charges upto 20.12.2011 on Rs.1,09,000/- for an amount of Rs.34,333/-. So the opposite party has no right to impose additional interest on instalments as the interest was added earlier. The opposite party has no right to seize the vehicle and sell without prior intimation. Any how the opposite party sold away the vehicle and it was transferred on third party’s name X.1 and X.2 shows the same. So the complainant has to pay the remaining balance the due instalments amoiunt of Rs.71,094/- (including interest) sale of vehicle Rs.65,000/- upto the end of instalments Rs.71,094/- - 65,000/- = Rs.6,094/-. The opposite party is entitled to receive Rs.6,094/- only from the complainant. The opposite party shall close the account of the complainant on receipt of the amount.
POINT No.3:-
9. In the result, this complaint is allowed in part and the opposite party is directed to receive the amount of Rs.6,094/- (Six thousand and ninety four rupees only) from the complainant. The complainant is also directed to pay the amount of Rs.6,094/- (Six thousand and ninety four rupees only) to the opposite party within one week. If the complainant fails to pay the awarded amount within one week, the awarded amount carries interest at the rate of 24% per annum till realization. No order as to costs.
Typewritten by Stenographer K.Sivaram Prasad, corrected by me and pronounced by us in the open Forum on this 20th day of December, 2012.
PRESIDENT MEMBER
Appendix of Evidence
Witness Examined
On behalf of the Complainant: On behalf of the Opp. Party:
None None
Documents Marked
On behalf of the Complainant:
Ex.A.1 09.09.2009 Photocopy of Certificate of Registration.
Ex.A.2 . . Bunch of Temporary Receipts.
Ex.A.3 23.02.2012 Office copy of legal notice.
Ex.A.4 . . Postal acknowledgement.
On behalf of the Opposite Party:
Ex.B.1 . . Photocopy of Loan Cum Hypothecation agreement.
Ex.B.2 . . Photocopy of Telegram.
Ex.B.3 . . Unsigned Repayment schedule.
Ex.B.4 . . General Ledgers, interest calculation reports,
Ex.X.1 30.01.2012 Attested copy of Form 29 Notice of Transfer of Ownership of a motor Vehicle.
Ex.X.2 30.01.2012 Attested copy of Form 30 Application for intimation and transfer of ownership of a motor vehicle.
PRESIDENT
