West Bengal

Paschim Midnapore

CC/86/2015

Sri Uttam Mandi - Complainant(s)

Versus

Sundaram Finance Ltd. - Opp.Party(s)

05 Jan 2016

ORDER

                                                            DISTRICT CONSUMER DISPUTES REDRESSAL FORUM

PASCHIM MEDINIPUR.

                             

Bibekananda Pramanik, President,

&

Mrs. Debi Sengupta, Member

Complaint Case No.86/2015

                                                       

                                                                             Sri Uttam Mandi……..….……Complainant.

Versus

                                   Sundaram Finance Ltd.…...........…..Opp. Party.

 

                                                   For the Complainant: Mr.  Asim Kumar Dutta, Advocate.

                                                  For the O.P.               : Mr. Surojit Dutta, Advocate.

 

Decided on: - 05/01/2016

                               

ORDER

                          Bibekananda Pramanik, President – Facts of the case, in brief, is that the complainant is a unemployed youth and for purpose of self employment, he entered into a Higher Purchase Agreement with the opposite party-Finance Company for purchase of a tractor and it was agreed that the opposite party would pay loan of Rs.4,50,000/- as loan for which the complainant shall have to pay interest of Rs.1,72,700/- and insurance of Rs.18,000/- to the opposite party.  It was further agreed by the said agreement that the complainant have to repay the said loan by 47 installments w.e.f. 29/07/2011 to 03/06/2015.  In terms of said agreement, the complainant paid Rs.1,50,098/- as internal payment  in the office of John Deere Tractors Company, Medinipur and after payment of the said amount, the opposite party issued a bank draft of Rs.4,50,000/- and after depositing of the said bank draft in the office of John Deere Tractors Company  on 26/07/2011, the complainant took delivery of a tractor and the said tractor  was thereafter registered vide registration no.WB-33B 2630. Thereafter the complainant made payment of Rs.3,64,500/- by 25 installments in the office of the opposite party and the opposite party also issued receipt of such payment.  Due to natural calamity, the complainant

Contd……………..P/2

 

 

 

( 2 )

could not make profit from his cultivation and he also failed to make regular payment of installment.  He informed the opposite party about his such difficulties in payment of repaying the loan.  In spite of that, the opposite party by sending a notice dated 06/07/2015 asked the complainant to make balance payment within 10 days.  After receiving the said notice, the complainant went to the office of the opposite party and requested for extension of time of one year for repayment but the opposite party did not agree and they threatened that if the payment is not made immediately then they would take forcible possession of the tractor very soon.  On 21/08/2014 at about 5.30 p.m., the opposite party forcibly took possession of the tractor.  On the next day, the complainant went to the office of the opposite party after collecting Rs.50,000/- and requested the opposite party to release the tractor after receiving Rs.50,000/- from him.  At that time, opposite party expressed that they are entitled to get Rs.3,00,000/-  unless and until the said amount is paid, they will not release the vehicle.  On 30/07/2015, the complainant again sent a letter to the opposite party requesting to enable him to pay the balance amount of loan with interest in 12 installments and to release the vehicle in his favour but the opposite party told the complainant that unless the entire balance amount is not paid within 7 days, in that event that would sell the tractor.  Hence the complaint, praying for an order of release of the vehicle and for other reliefs.

                  The opposite party has contested this case by filling a written objection. Denying and disputing the case of the complainant, it is the specific case of the opposite party that on 29/07/2011, the complainant entered into a loan agreement with the opposite party and the opposite party agreed to provide the said loan for purchase of John Deere Tractor and a sum of Rs.4,50,000/- was provided as loan towards purchase of the vehicle.  The complainant agreed and accepted the loan amount and he further agreed to repay the said loan amount by 47 installments to be paid in the manner as mentioned in para 10 of the written objection.  In terms of the said agreement, the complainant also agreed to hypothecate the said tractor in favour of the opposite party and accordingly the said loan amount was released by the opposite party in favour of the authorized dealer of John Deere Tractor, Medinipur and the complainant took possession of the said vehicle and got the vehicle registered by the registration authority vide the registration no.WB-33B 2630.  During pendency of the agreement of loan, the complainant willfully, deliberately and with mala fide intention did not pay the said equated monthly installments in time.  A Sum of Rs.2,37,000/- is still outstanding in respect of that loan as on 07/08/2015 being the principal amount and the opposite party is also entitled to additional finance charges, cheque dishonored charges and repossession charges etc. 

Contd……………..P/3

 

 

 

( 3 )

            Since the complainant did not pay the installments in time in terms of the agreement dated 29/07/2011, the opposite party was compelled to take repossession of the said vehicle from the complainant.  In the event, the complainant pays the principal amount and other charges, the opposite party is still willing to return the said vehicle to the complainant.  The opposite party therefore claim dismissal of the complaint with cost.    

Point for decision

                                                            Is the complainant entitled to get the reliefs, as sought for ?                      

Decision with reasons

                In this case, neither the complainant nor the opposite party adduced any sort of evidence either oral or documentary but they have relied upon some documents in support of their case.

                It appears from the respective pleadings of the parties that admittedly the complainant took loan of  Rs,4,50,000/- from the opposite party for purchase of a tractor by a loan agreement dated 29/07/2011. Admittedly, after payment of few installments, the complainant failed to repay the loan within the period of contract.  It is also admitted that for such non-payment of the loan amount in terms of the said loan agreement, the opposite party took repossession of the hypothecated vehicle in question.  Now the question remains for consideration is whether in such circumstances the opposite party was justified in taking forcible  possession of the vehicle in question or not. It is the well settled principal of law that forcible repossession of the vehicle is against the settled principal of law.  It is also well settled that method of recovery of vehicle in case of Higher Purchase Agreement should be in pursuance of due process of law and use of muscle power is not permissible.  Here in the present case, we find that without due process of law, the opposite party forcibly took repossession of the vehicle in question which is not permissible in law.  We are, therefore, of the view that the complainant is entitled to the relief for return of the vehicle in question.  Opposite party would be at liberty to recover the unpaid amount of loan with interest by due process of law.  The petition of complaint should be, therefore, allowed in part. 

                                                Hence, it is,

                                                                      Ordered,

                                                             that the complaint case no.86/2015  is allowed in part on contest.  Opposite party is directed to return the disputed vehicle bearing no.WB-33B 2630 to the complainant within a month from this date of order.

                 Dictated & Corrected by me

                                Sd/-                                           Sd/-                                          Sd/-

                           President                                    Member                                   President

                                                                                                                          District Forum

                                                                                                                       Paschim Medinipur