DATE OF FILING : 24.1.2011

BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 30^th day of March, 2011

Present:

SRI.LAIJU RAMAKRISHNAN PRESIDENT

SMT.SHEELA JACOB MEMBER

SMT.BINDHU SOMAN MEMBER

C.C No.24/2011

Between

Complainant : Mohanan C.A.,

Cheriyamkunnel House,

Thattekkanni P.O.,

Idukki District.

(By Adv: Siby Jacob)

And

Opposite Parties : 1. Shriram City Union Finance Ltd.,

Kattappana P.O.,

Idukki District.

2. The Manager,

Shriram City Union Finance Ltd.,

Administrative Office,

221, Royapettah High Road,

Mylapore, Chennai – 600 004.

(Both by Adv: Sreenivas V. Pai)
 

O R D E R
 

SMT. BINDHU SOMAN (MEMBER)
 

The complainant purchased a two wheeler bearing No.KL-6D-7097 (Victor GX). For purchasing the vehicle, the complainant availed a loan of Rs.57,000/- from the opposite parties. As per the loan agreement, the complainant has agreed to repay the amount together with interest in 36 instalments each of Rs.1,580/- per month. The complainant had paid 20 instalments without any default. As a coolie, the complainant was not in a position to pay the balance amount. So the complainant informed the matter to the 1^st opposite party. On 21.1.2010, as per the direction of the opposite party the complainant surrendered the vehicle before the 1^st opposite party and closed the loan transaction. Anoop Chandran, the office staff of the 1^st opposite party issued the receipt on 21.1.2010. But on 23.2.2010 the complainant received a letter from the 2^nd opposite party. As per this letter the complainant should pay Rs.32,890/- before the opposite party within a week from the receipt of this notice otherwise the asset of the complainant will be seized. The complainant is not liable to pay any amount to the opposite party. Alleging deficiency of service on the part of the opposite party, the complainant filed petition before this Forum.
 

2. The opposite party filed written version. In the written version, the opposite party admitted the loan transaction. The opposite party stated that the very beginning of the repayment schedule the complainant started committing defaults. As per the hypothecation agreement, the opposite party charged default interest and cheque bounce charges. The complainant surrendered the vehicle on 21.1.2010. Mere surrender of the used vehicle does not amount to closure of loan account. The opposite party take possession of the vehicle for default in payment. When the complainant is unable to repay the loan amount, he requested to the opposite party to sell the vehicle and credit the amount in his loan account. The opposite party adjusted the amount in his loan account and the remaining balance of Rs.32,890/- in the loan account of the complainant, the opposite party had issued demand notice to the complainant and intimated about the arbitration proceedings. After that the complainant neither approached the opposite party office nor issued any notice for redressal of his grievance.

3. The point for consideration is whether there was any deficiency in service on the part of the opposite parties, and if so, for what relief the complainant is entitled to ?
 

4. No oral evidence adduced by both the parties. Exts.P1 to P5 marked on the side of the complainant and Exts. R1 to R3 marked on the side of the opposite parties.

5. The POINT :- Documents produced by the complainant are marked. Ext.P1 is the pass book of the complainant, that shows the repayment of loan. Ext.P2 is the demand notice of the opposite party issued to the complainant, demanding Rs.32,890/- and other charges from the complainant. The complainant surrendered the vehicle on 21.1.2010. The surrender letter is marked as Ext.P3. The receipt voucher issued by the opposite party is marked as Ext.P4. Inventory report is marked as Ext.P5. The opposite party also produced some documents. Ext.R1 is the copy of the hypothecation agreement between the complainant and the opposite party. The photocopy of the power of attorney is marked as Ext.R2. Ext.R3 is the statement of accounts of complainant's loan account as on 11.3.2011.
 

The complainant took Rs.57,000/- as loan. He paid 20 instalments of Rs.1,580/- each. As per Ext.R1 agreement, the complainant is agreed to pay 36 instalments. The balance instalments is 16 in number. The complainant had surrendered the vehicle on 21.1.2010 with the opposite party. After 10 months time, the opposite party issued a demand notice to the complainant demanding Rs.32,890/- and other charges. Ext.P2 is the demand notice. The opposite party admitted the surrender of vehicle, but the sale amount of the vehicle is not mentioned in anywhere. So we fix the value of the complainant's vehicle as Rs.24,500/- at the time of auction sale.
 

Hence the petition is closed. The opposite parties are directed to deduct the sum of Rs.24,500/- from the complainant's loan account and the opposite party is also directed to charge 12% interest in the pending instalments from the due date.

Pronounced in the Open Forum on this the 30^th day of March, 2011

Sd/-
 

SMT. BINDHU SOMAN (MEMBER)

Sd/-

I agree SRI. LAIJU RAMAKRISHNAN (PRESIDENT)

Sd/-

I agree SMT. SHEELA JACOB (MEMBER)

APPENDIX

Depositions :

Nil.

Exhibits :

On the side of the Complainant :

Ext.P1 - The pass book of the complainant issued by Cheruvattoor Rural Co-operative Bank.

Ext.P2 - The demand notice issued by the opposite party dated 23.12.2010.

Ext.P3 - The surrender letter submitted by the complainant dated 21.1.2010.

Ext.P4 - Copy of the receipt voucher issued by the opposite party dated 3.3.2008.

Ext.P5 - Inventory report issued by the opposite party.

On the side of the Opposite Parties :

Ext.R1 - Copy of the hypothecation agreement dated 7.2.2007.

Ext.R2 - Photocopy of the power of attorney.

Ext.R3 - The statement of accounts of complainant's loan account as on 11.3.2011.