DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, BATHINDA

CC.No.72 of 07-02-2011

Decided on 08-06-2011

Balbir singh son of Inder Singh son of Chattar Singh, aged about 50 years, Resident of village Fakarsar,

 Part-I, Tehsil Malout, District Muktsar. .......Complainant

Versus

Shriram Transport Finance Company Limited, 2765-B, Above Amway Showroom, Tinkoni Chowk,

Goniana Road, Bathinda, through its Managing Director/Chairman.

......Opposite party

Complaint under Section 12 of the Consumer Protection Act, 1986.

QUORUM

Smt. Vikramjit Kaur Soni, President.

Sh.Amarjeet Paul, Member.

Present:-

For the Complainant: Sh.Chamkaur Singh, counsel for the complainant.

For Opposite parties: Sh.J.S.Kohli, counsel for opposite party.

ORDER

Vikramjit Kaur Soni, President:-

1. The present complaint has been filed by the complainant under Section 12 of the Consumer Protection Act, 1986 as amended up-to-date (Here-in-after referred to as an ’Act’). The brief facts of the complaint are that the complainant got financed his tractor Eicher, bearing Registration No.PB-30D-9738 under hire purchase loan cum hypothecation agreement No.BCBTNIDA0000065 by the opposite party. The complainant got his tractor financed for a sum of Rs.1,20,000/-. The opposite party has obtained cheque book from the complainant and has obtained the signatures on various blank papers and Forms. The complainant has repaid the entire loan amount including all expenses of the opposite party after receipt of notice from the opposite party dated 10.04.2010. The complainant had paid entire amount to the opposite party after receipt of the notice from the opposite party on 10.04.2010. The reply to the said notice dated 15.10.2010 was sent by the complainant. The opposite party despite making full payment of loan amount, is not releasing No Due Certificate Form No.35 required for cancellation of hypothecation entry from Registration copy of Eicher tractor of the complainant and also not releasing the cheque book, cheques obtained in blank from the complainant at the time agreement rather demanding extra charges from the complainant. The opposite party has withhold the cheque book and blank cheque of the complainant. The complainant served a legal notice dated 15.10.2010 to the opposite party for release of No Due Certificate but neither the opposite party replied the said legal notice nor issued No Due Certificate to the complainant. Due to non-release of No Due Certificate and cheque book and blank cheques by the opposite party, the complainant has suffered mental tension, agony and financial loss. Hence, the complainant has filed the present complaint seeking directions of this Forum against the opposite parties to release No Due Certificate Form No.35 which is required for cancellation of hypothecation entry from registration copy, cheque book and blank cheques alongwith cost and compensation.

2. The opposite party has filed its written statement and pleaded that the complainant is not consumer as under the C.P. Act. The complainant got the tractor in question financed from the opposite party but the opposite party has neither obtained the cheque book from the complainant nor has obtained the signatures of the complainant on any blank papers. The opposite party has denied the fact that the complainant has repaid the entire amount to the opposite party. The opposite party issued a legal notice dated 10.04.2010 to the complainant and has denied that the complainant sent any reply to the said legal notice rather the opposite party never received any reply/letter dated 15.10.2010. The complainant committed the default in making the repayment of the amount alongwith interest as per the repayment schedule rather he has been making the payment of installments after delay, as a result of which, the opposite party imposed the charges upon the complainant on account of delay payments and as per the detailed statement of account of the complainant, an amount of Rs.23,258.70/- has accrued against the complainant on account of delay payment charges and further Rs.12,496/- on account of outstanding dues against the complainant and in this way, a total sum of Rs.35,754/- is still due and outstanding against the complainant as on 12.10.2010 which the opposite party is entitled to recover the same from the complainant alongwith upto date interest and other charges as per the terms and conditions of the agreement between the parties. The complainant has not cleared all the outstanding dues of the opposite party rather a sum of Rs.35,754/- is still due and outstanding against the complainant as on 06.05.2011 alongwith upto date interest as per terms of the agreement. The No Due Certificate Form No.35 cannot be issued by the opposite party until and unless, the amount was paid by the complainant.

3. Parties have led their evidence in support of their respective pleadings.

4. Arguments heard. Record alongwith written submissions submitted by the parties perused.

5. The complainant has submitted that he has got financed his tractor Eicher, for Rs.1,20,000/-. He has repaid all the loan amount to the opposite party after receiving of the notice issued by the opposite party dated 10.04.2010. After depositing the whole amount, the complainant has replied to the said notice dated 15.10.2010 and requested the opposite party to release the No Due Certificate Form No.35 required for cancellation of hypothecation entry from Registration copy of the tractor of the complainant. The opposite party has failed to issue No Due Certificate Form No.35 and also not released the cheque book and cheques obtained in blank from the complainant as security at the time of agreement rather it has been demanding extra charges from the complainant which amounts to unfair trade practice on the part of the opposite party.

6. The opposite party has submitted that the complainant is defaulter in paying the loan installments. He is defaulter as he has not paid the entire loan amount to the opposite party. The opposite party has got issued a legal notice dated 10.04.2010 to the complainant but it has never received any letter/reply sent by the complainant dated 15.10.2010. The complainant is defaulter in making the payment of installments alongwith interest as per terms of agreement. He has been making the payment of the installments after delay, as a result of which, the opposite party imposed the charges upon the complainant on account of delay payments and as per the detailed statement of account of the complainant and an amount of Rs.23,258.70/- has accrued against the complainant on account of delay payment charges and further an amount of Rs.12,496/- is outstanding dues against the complainant and in this way, a total sum of Rs.35,754/- is still due and outstanding against the complainant as on 12.10.2010. In para No.5 of the written statement on merits, it has been specifically denied by the opposite party that the complainant cleared all the outstanding dues of the opposite party rather a sum of Rs.35,754/- is still due and outstanding against the complainant on 06.05.2011 which the opposite party is entitled to recover from the complainant alongwith upto date interest and other charges as per agreement between the parties and No Due Certificate Form No.35 can not be issued by the opposite party until and unless, due amount was paid by the complainant. The opposite party is ready to issue the No Due Certificate only after getting the entire outstanding due amount from the complainant.

7. The record placed on file by the parties shows that the complainant has placed on file different receipts, which he had paid towards the loan amount vide Ex.C-1 to Ex.C-16. Ex.C-18 dated 10.04.2010 is the notice for default in payment of installment by hirer/borrower for vehicle No.PB-30D-9738 which has been sent by Shriram Transport Finance Company Limited i.e. the opposite party to the complainant and has specifically mentioned that the dues amount to the tune of Rs.54,806/- is due and in this, the outstanding dues do not include overdue charges. Before that the first notice for default in payment of installments by hirer/borrower for vehicle No.PB-30D-9738 under agreement No.BCBTNIDA00 00065 Ex.C-19 dated 03.03.2010. The notice was issued to the complainant in which, the demand of Rs.45,080/- was raised as he failed to deposit Rs.45,080/- which are outstanding arrears against the hirer/borrower. The aforesaid outstanding amount does not include overdue charges. The complainant has also served a legal notice to the opposite party. He has deposed in his affidavit that he has deposited 35 installments each for Rs.4,667/-. The opposite party in advance had calculated his total finance as Rs.1,63,345/- including interest. The complainant had repaid Rs.1,64,500/- through 16 installments.

8. A perusal of Ex.R-2 i.e. statement of account shows that the loan amount was disbursed to the complainant for Rs.1,20,000/- and agreement value was Rs.1,70,220/- which was payable in equal 36 installments. The number of installments paid by the complainant were 35 installments. This statement clearly shows the complainant is defaulter of one installment as he himself agreed that he has paid only 35 installments till May, 2011 for Rs.1,64,500/- whereas the total amount recoverable was of Rs.1,70,220/-. The complainant is default in payment of one installment only and accordingly the opposite party is entitled to recover the last installment but the complainant has urged in his complaint that he has already deposited all installments as on 10.04.2010 after receiving the notice from the opposite party but the account statement shows that he is default in one installment i.e. 36th installment. According to the opposite party, the amount of Rs.35,754/- is still due against the complainant from which Rs.23,258.70/- are due on the account of delay payment charges and Rs.12,496/- as outstanding dues. The cheque book and the blank cheques were lying with the opposite party and if there was delay of even a single day, the opposite party can get the cheque cashed from the bank towards the delayed installment/payment. No explanation of over-dues charges has been given by the opposite party. Hence, the amount raised by the opposite party for Rs.35,754/- is not justifiable. The opposite party is entitled to get the last installment which is not paid by the complainant.

9. Therefore, in view of what has been discussed above, this complaint is accepted without any order as to cost with direction to the complainant to deposit Rs.4,863/- within 15 days from the date of receipt of copy of this order and the opposite party will issue No Due Certificate Form No.35, cheque book alongwith blank cheques obtained as security from the complainant within next 30 days from the date of deposit of last installment by the complainant. Compliance of this order as a whole be done within 45 days from the date of receipt of copy.

10. A copy of this order be sent to the parties concerned free of cost and file be consigned for record. ’

Pronounced

08.06.2011

(Vikramjit Kaur Soni)

President

(Amarjeet Paul)

Member