DATE OF FILING : 20.10.2010
BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 28th day of February, 2011
Present:
SRI.LAIJU RAMAKRISHNAN PRESIDENT
SMT.SHEELA JACOB MEMBER
SMT.BINDU SOMAN MEMBER
C.C No.231/2010
Between
Complainant : Saji Kumar, S/o Sadanandan,
Thoppil House,
Kanchiyar P.O.
Kattappana, Idukki District.
(By Adv: Saji Augustine)
And
Opposite Party : SML Finance
Kattappana,
Vellayamkudy P.O.,
Idukki District.
(By Adv: Gem Korason)
O R D E R
SRI. LAIJU RAMAKRISHNAN (PRESIDENT)
The complainant purchased a Piaggio Ape Autorickshaw, from the opposite party in the year 2007 bearing Reg. No.KL-37-931. Cost of the vehicle was Rs.1,14,000/- and on the date of purchase, an amount of Rs.24,000/- was paid in cash and an amount of Rs.90,000/- was availed as loan under a higher purchase agreement. The EMI was for Rs.4,102/- with 36 monthly instalments starting from August, 2007. The original Registration certificate, signed blank papers and signed blank cheque leaves were issued by the complainant as security for the loan. The complainant was remitting the amount promptly and had so far paid all the instalments except the last 7 instalments. When 4 instalments were in due the complainant had approached the opposite party with the requisite amount. But the opposite party had demanded Rs.6,500/- each for every instalments instead of Rs.4,102/- and so the amount was not remitted by the complainant. Then a complainant was filed before the SI of the police Kattappana but the opposite party had not agreed to the legitimate amount calculated by the SI. At the police station, the opposite party had produced a claim for Rs.68,163/-. The tabulation made by the opposite party is, instalment amount – 28,714/-balance – 6,271/-, service charge – 1,775/-, insurance and postage – 5,471/- insurance fine – 2,072/- late fee – 12,703/-, RTO – 11,157/- and total amount Rs.68,163/-. The complainant was ready to pay the reasonable and actual amount due as per the hire purchase agreement to the opposite party. Since the vehicle was to be tested before 2-10-2010 the complainant had demanded the RC Book of the vehicle from the opposite party but the opposite party had denied the same. The insurance certificate and the tax token were also not handed over to the complainant and so the complainant was not able to ply his vehicle from 2/10/2010. The complainant earns his daily bread by working as driver in the above said vehicle and the complainant is deprived of his only means of livelihood by the illegal acts of the opposite party. The petition is filed for directing the opposite party to settle the account between the complainant and the opposite party and to return the RC Book, the cheque leaves and other sureties.
(cont....2)
- 2 -
2. As per the written version filed by the opposite party, the loan amount was Rs.1,47,672/- payable by 36 instalments of Rs.4,102/- each. The complainant never issued blank cheque leaves, blank papers and RC Book as security at the time of availing the loan. The complainant was not regular in remitting the instalments. The balance due amount includes the service charge, postage and searching charge. The insurance fine includes fine charged for the delay in payment of insurance amount. The late fee includes the interest charged on the instalment amount for the delay in payment. The RTO includes the documentation charge, the expense incurred for the tax payment, testing, fitness certificate and welfare fund etc.. The opposite party claimed the amount as per the agreement dated 8.9.2007. The complainant had made default in the repayment of instalment amounts and there after the repeated demand from the opposite party the complainant and his guarantor came to the office of the opposite party and was ready for the payment of instalment amount and other dues. So towards the payment of dues till the month of November the guarantor of complainant had issued cheque bearing No.470175 for an amount of Rs.51,600/- dated 20.11.2010 drawn on Federal Bank and the complainant had issued another cheque bearing No.470176 for an amount of Rs.14,700/- dated 30.11.2010. Thereafter the opposite party surrendered the RC Book to the complainant. The agreement between the complainant and the opposite party clearly points out the arbitration clause in page 6 clauses 33 and as per the agreement if any dispute arises between the parties the dispute should be referred to the arbitrator and the petition is not at all maintainable.
3. The point for consideration is whether there was any deficiency in service on the part of the opposite party, and if so, for what relief the complainant is entitled to ?
4. No oral evidence adduced by both the parties. Exts.P1 to P4 marked on the side of the complainant and Exts.R1 and R2(series) marked on the side of the opposite party.
5. The POINT :-The complainant filed an affidavit and produced some documents. The RC Book of the vehicle is marked as Ext.P2 and permit of the vehicle is marked as Ext.P1. As per the complainant, the complainant had remitted 23 instalments to the opposite party and the loan pass book produced is marked as Ext.P4 in which it shows the 23 instalments were paid. As per the complainant 7 instalments are due, when the complainant approached to pay the balance amount, the opposite party demanded Rs.6,500/- for every month instead of Rs.4,102/-. So the complainant was not able to remit the amount and he filed a petition before the SI of police, Kattappana. In that complaint, the opposite party produced a claim for Rs.68,163/- as due amount to them which the complainant is entitled to pay. As per the opposite party, they have paid the insurance premium amount of the vehicle which is Rs.2,634/- and Ext.R1 is the copy of the insurance policy. The tax of the vehicle was also paid by the opposite party which is an amount of Rs.1,560/- and the motor transport worker's welfare fund was also paid by the opposite party which is Rs.1,450/- and Ext.R2(series) are the receipts of the welfare fund and tax token. As per the request of the complainant, the opposite party produced a statement of account of the complainant's loan in which it is stating that the instalments paid by the complainant are 28 and there are 8 instalments left due and the due amount is Rs.32,816/-. There is an amount of Rs.7,271/- which is the HP balance, which means that the complainant several times made the payment without the exact instalment amount and the balance amount comes as HP balance. Then searching charge Rs.1,775/- which is a charge for searching the complainant for intimating him the payment. RTO Rs.8,657/- postage charge Rs.30/-, insurance amount Rs.5,441/-, late fee Rs.12,006/- and 36% is taken as interest for the due instalments. Fine charge is written as Rs.2,804/-.
(cont.....3)
- 3 -
So we think that the amount calculated by the opposite party is exorbitant and the opposite party never produced evidence to show that, it is as per the direction of RBI or Government of India, that the opposite party charged an interest of 36% for the due instalments. The hypothecation agreement also not produced by the opposite party. The opposite party stated that the complainant paid 28 instalments and 8 instalments are due from the complainant. So the opposite party can charge interest for the due instalments as 12% from the date of due for each instalment and the insurance amount as per Ext.R1 which is entitled to pay by the complainant. The road tax of the vehicle and the amount for the motor transport worker's welfare fund can also count from the complainant's account.
Hence the petition allowed. The opposite party is directed to settle the loan account of the vehicle bearing Reg.No.KL-37-931 by calculating the interest for the due instalments at 12% per annum from the date of due. The opposite party can also charge the insurance, tax and welfare fund charges of the vehicle. The opposite party is also directed to return the R.C. Book, cheque leaves and other documents received at the time of availing the loan, within 15 days of settlement of account.
Pronounced in the Open Forum on this the 28th day of February, 2011
Sd/-
SRI. LAIJU RAMAKRISHNAN (PRESIDENT)
Sd/-
SMT. SHEELA JACOB (MEMBER)
Sd/-
SMT. BINDU SOMAN (MEMBER)
APPENDIX
Deposition :
On the side of the Complainant :
Nil.
On the side of the Opposite Party :
Nil.
Exhibits :
On the side of the Complainant :
Ext.P1 - Copy of the permit of the vehicle.
Ext.P2 - Copy of the registration certificate of the vehicle.
Ext.P3 - A statement of transactions in the complainant's loan account.
Ext.P4 - Loan pass book.
On the side of the Opposite Party :
Ext.R1 - The insurance policy.
Ext.R2(a) - Tax receipt of the vehicle.
Ext.R2(b) - Receipt of subscription for Motor Transport Worker's Welfare Fund Board.
