By Smt. Saji Mathew, Member:

The gist of the case is as follows:

The Complainant had taken a loan of Rs.39,400/- on 19.05.2005 by pledging his bike from the 1^st Opposite Party through the 2^nd Opposite Party. The loan was endorsed in the R.C book from the Regional Transport Office, Kalpetta. At the time of availing the loan the Complainant entrusted 36 post dated signed cheques and stamp papers and also the R.C Book with the Opposite Parties as security for the loan. Even though the Complainant had remitted the amount of 33 instalments directly to the 2^nd Opposite party, the Opposite Parties have presented the cheques for collection and collected Rs.11,500/- as cheque bouncing charge.

2. Interest was calculated at flat rate on the loan amount. The total amount including the interest calculated at Rs.57,600/- which was payable in 36 monthly instalments. The Complainant has paid 33 instalments. He was ready to pay the other 3 instalments amounting to Rs.4,800/- and close the entire loan. But when the Complainant approached the 2^nd Opposite Party for this purpose, they demanded Rs.32,151/- including Rs.15,851/- as overdue interest and Rs.11,500/- as cheque bouncing charge. The Opposite Parties have not returned the original R.C Book which they have promised to return after the loan endorsement. There is deficiency in service on the part of the Opposite Parties. Therefore, the complainant prays for an order directing the Opposite Parties to return the R.C. Book and issue the loan clearance certificate after receiving the three instalment money ie Rs.4,800/-. The Complainant also prays for the return of cheque leaves and stamp papers from the Opposite Parties. He also prays for a compensation of Rs.25,000/- and other costs. The Complainant also prays that the 3^rd Opposite Party may be directed to cancel the loan endorsement in the R.C Book in case where the Opposite Parties are not responding to the order.

3. The Opposite Parties filed version and admitted the loan agreement with the Complainant. The Opposite Parties admit that the Complainant has paid 33 instalments. But the instalments were paid only after the presentation and dishonouring of cheques. So, the Complainant is liable to pay penal charges. The allegation that the R.C. Book is withheld by the Opposite Parties are no t correct. The R.C is with the Complainant himself. The loan period expired on 07.05.2008. The 3 instalments along with the bouncing charges and overdue charges amounting Rs.23,571/- in yet to be paid. Therefore, the Opposite Party prays for an order dismissing the complaint.

4. The Complainant was examined as PW1 and documents were marked as Exts. A1 and A2 series on the side of the Complainant. No proof affidavit was filed by the Opposite Parties. Ext.B1 was marked on the side of the Opposite Parties at the time of cross examining the Complainant.

5. The matters to be considered are as follows.

1. Whether there is any deficiency in service on the side of the Opposite Parties?

2. Whether the Complainant is entitled for any relief?

6. Point No.1:- The Opposite Party admit the statement of the Complainant that 33 instalments were paid. The total number of instalments are 36. One instalment amount in Rs.1,600/-. Hence three instalments, ie Rs.4,800/- were due. The last instalment due date is 07.05.2008. But payment of instalment were made even in 5/09. On some receipts of Ext.A2 series it is seen that overdue interest and bank charges were charged. But on receipts for payment after due date of last instalment, no penal interest or bank charges were seen collected. The Opposite Parties are not entitled to collect any penal charge before the due date of last instalment. (2008 CPJ N.C, P- 40, Ashok Leyland Finance Ltd., V/S Ramjilal Gupta). As per Ext.B1 the interest is calculated at flat rate of 15% for the entire loan amount for the loan period and monthly instalments were given for the convenient payment by the loanee. In this case, the Opposite Parties had collected penal interest even before the due date of last instalments. Here it is evident that the Complainant had not repaid the loan amount within the agreement period. But the Opposite Parties have collected the instalments even after the loan period and without specifying the penal charges or bank charges. Even before the Forum, they have not produced any statement regarding such charges or any account statement. In short there is no transparency in the dealings of Opposite Parties regarding the matter in dispute. Hence, the point No.1 is found against the Opposite Parties.

7. Point No.2:- It is admitted by both parties that only 3 instalments ie Rs.4,800/- are remaining to be paid. The Complainant is to pay this amount with an interest at the rate of 12% per annum from the date of last instalment till payment. On payment of this amount, the Complainant is entitled to get the No Objection Certificate for the cancellation of loan endorsement.

Therefore, the complaint is partly allowed. The 1^st and 2^nd Opposite Parties are directed to issue No Objection Certificate for the loan clearance on payment of Rs.4,800/- (Rupees Four thousand Eight hundred only) with 12% interest per annum from 07.05.2008 till payment by the Complainant.

Pronounced in open Forum on this the day of 26^th March 2010.

PRESIDENT: Sd/-

MEMBER : Sd/-

MEMBER : Sd/-

A P P E N D I X

Witness for the Complainant:

PW1. Mani. M. Complainant.

Witness for the Opposite Parties:

Nil.

Exhibits for the Complainant:

A1. Copy of Registration Certificate.

A2 series. Copy of Receipt Voucher.

Exhibit for the Opposite Parties:

B1. Loan Agreement.