BEFORE THE A.P.STATE CONSUMER DISPUTES REDRESSAL COMMISSION: ATHYDERABAD.

F.A.No.307/2011 against C.C.No.12/2010 District Forum, Nizamabad.

Between

The Branch Manager

M/s Shriram Transport Finance Company Limited,

Rep. by Sri Y.Rama

Krishnudu S/o.Sri Y.Narayana,

Aged 29 years, Occ:Branch Manager

R/o.D.No.5-6-573/1B/1, Pragathinagar

Nizamabad.                                                                                              

And

Sri Rathod Babu Rao S/o.Kishan

Aged 37 years, Occ: Lorry driver-cum-

Owner, R/o.Sainagar,Road No.3,

Nizamabad.                                                                                                                                       

Counsel for the Appellant            

Counsel for the Respondent         

QUORUM: 

AND

SRI S.BHUJANGA RAO, HON’BLE MEMBER. 

TUESDAY, THE FIFTH DAY OF FEBRUARY,

TWO THOUSAND THIRTEEN

Order (Per Smt.M.Shreesha, Hon’ble Incharge President)

***

Aggrieved by the order in CC 12/2010 on the file of District Forum, Nizamabad, the opposite party preferred this appeal.

           Nellore         

          Opposite party denied that it heavily charged interest and demanded the complainant to pay Rs.5,00,000/- for total clearance of the loan and seized the lorry and used the signed blank cheques.  

It is the complainant’s case that he is a driver and owner of a lorry purchased in the month of June, 2006 and financed by the opposite party for Rs.5,00,000/- to be repaid in 60 instalments and the complainant was paying the monthly instalments regularly.       

Exs.B3, B4 and B5 are letters written by the complainant to the opposite party on 23-1-2009, 27-6-2008 and 24-7-2008 respectively stating that an amount of Rs.4,93,650/- and credit charges of Rs.850/- and DC & SC charges of Rs.5,500/- be adjusted towards the agreement.     wherein the apex court held as follows:

Under the Hire Purchase Agreement, it is the financier who is the owner of the vehicle and the person who takes the loan retain the vehicle only as a bailee/trustee, therefore, taking possession of the vehicle on the ground of non-payment of instalment has always been upheld to be a legal right of the financier.

The Court vide its judgmenet in Trilok Singh and Ors. v. Satya Deo Tripathi, AIR 1979 SC 850, has categorically held that under the Hire Purchase Agreement, the financier is the real owner of the vehicle, therefore, there cannot be any allegation against him for having the possession of the vehicle. Bihar

The complainant has admitted that the opposite party had issued notice vide Ex.A2 on 7-11-2009 and thereafter the vehicle was sold after publication in the newspaper on 01-12-2009 for Rs.3,50,000/-.  

                                                                            JM