By. Smt. Renimol Mathew, Member:

The complaint is filed under section 12 of Consumer Protection Act to get clearance certificate and RC book of the vehicle bearing No. KL 12 E 4517 from the opposite party on receipt of defaulted payment by the complainant.

2. Brief of the complaint:- The complainant purchased a motorcycle vide registration No. KL 12 E 4517 from the Bajaj dealer. Finance for the vehicle was arranged by opposite party No.1. Subsequently the financier was arrayed as opposite party No.2. The total finance amount for the vehicle was Rs.27,600/- and the same has to be repaid by way of 30 monthly installments. The amount fixed per installment was Rs.1,580/-. The complainant paid upto 21 installments thereafter when there was some delay and opposite party No.2 demanded huge amount as penal interest and he could not pay the remaining 9 installments. As per Hypothecation Agreement the last installment has to be paid on 09.12.2012 accordingly on 1^st week of December 2012 this complainant approached the opposite party No.1 to make payment of the entire balance but opposite party's illegally claimed more than Rs.25,000/- and threatened him that they will snatch the vehicle forcefully. Opposite parties also withheld the original RC book, 2 cheque leaves and other records collected from the complainant as security. Complainant alleged that he is ready to settle the issue but opposite parties charged exorbitant amount as penal interest for defaulted amount. Hence filed this complaint alleging deficiency of service.

3. Opposite parties appeared and filed version. Opposite party No.1 denied the allegations in the complaint that they were never arranged loan to this complainant, they were not at all a financial agency and not a necessary party to this transaction.

4. Opposite party No.2 entered and version filed stating that the amount shown as total finance amount is not true or correct. The total finance amount is Rs.32,000/- and interest for 30 months is Rs.15,400/-, and total amount to be paid by the complaint as per the agreement and chart is Rs.47,400/-. The complaint availed installment facilities for his convenience and defaulted the entire installments except the 1^st installment. As per the agreement the complainant has to pay additional hire charges for the defaulted amount. Then the complainant alienated the vehicle to third parties and to settle the accounts the complainant tried to obtain the no-objection certificate by way of misusing the process of law. The complainant never approached the opposite party or any other person related to this opposite party with the balance amount, but this opposite party contacted the complainant through telephone, mediators and the agent named Unni. All these occasions the complainant said one or other excuses and delayed the payment deliberately. Opposite party further stated that the entrustment of cheques and original R.C. book etc is some lame excuses to legitimate the gross negligence on the part of the complainant. This opposite party is ready to issue no objection certificate on receipt of the balance installment, additional hire charges and other expenses. Since there is no negligence on the part of this opposite party and the complainant has to pay the interest 24% and additional hire charges for the defaulted days.

5. On considering the complaint and documents the Forum raised the following points for consideration:-

1. Whether there is any deficiency of service on the part of the opposite parties?

2. Relief and Cost.

6. Point No.1:- Complainant adduced evidence as PW1. To prove his claim complainant produced 7 payment receipts and that was marked as Ext.A1 series. Payment chart is marked as Ext.A2. Payment receipts dated 10.09.2012 and 19.06.2010 was marked as Ext.A3. Opposite parties adduced evidence and examined as OPW1 and OPW2. Authorization letter is marked as Ext.B1. Hypothecation Agreement is marked as Ext.B2. Loan chart is marked as Ext.B3. Complainant alleges that he had received only Rs.26,700/- as loan amount but on perusal of hypothecation Agreement Ext.B2 it is found that complainant received Rs.32,000/- as loan amount. Agreement date mentioned in Ext.B2 was 09.06.2010. Both the parties admitted that complainant repaid only 21 installments up to 09.03.2012 remaining 9 installments stands unpaid and become due. Opposite party No.2 argued that over the 9 defaulted installments he is entitled to get penal interest as per the Hypothecation Agreement. On perusal of Ext.B2 it is found that principal amount is Rs.32,000/- and interest Rs.15,400/- installment per month is Rs.1,580/-, period of installments is 30 months. Opposite party No.2 further argued that this complainant defaulted the payment and thereby violated the terms of agreement. Hence they are entitled to get penal interest as per the terms and conditions of agreement. Opposite party denied the acceptance of cheque leaves and RC book and they are ready to give the clearance certificate to the complainant at the instance of clearing the financial liability owed by the complainant. In the agreement nowhere mentioned the principle amount but in page No.1 of agreement there is mentioning about 'B' schedule also, that means 'B' schedule also is a part of Ext.B2. On perusal of Ext.B2 agreement it is found that this is not a complete one. 'B' schedule is not seen attached. Principal amount not seen recited in the agreement. A photocopy of 'B' schedule seen produced and marked as Ext.B3. Total loan amount mentioned in Ext.B3 is Rs.47,400/- but in Ext.A2 loan chart and Ext.B3 'B' schedule due date of 1^st installment is 09.07.2010 and the date of last installment is 09.12.2012, installments in both the documents are same as Rs.1,580/-. As per Ext.B3 complainant has to pay Rs.14,490/- as interest but complainant defaulted the installments after 09.03.2012 this complaint is filed on 15.12.2013 ie after 1 year of due date of last installment. On an overall evaluation of the evidences and records we finds that if the complainant had to pay the installments promptly the interest shown in Ext.B2 of Rs.14,490/- was sufficient to get the clearance certificate. But here in this case the complainant defaulted the payment after 09.03.2012. Now huge amount is due before opposite party. When complainant approached opposite party to settle the claim they demanded exorbitant amount and hence he could not pay the remaining 9 installments and the payment of 21 installments are admitted by both the parties. Deficiency on the part of complainant stands proved by not paying the balance amount of 9 installments within the period again deficiency on the part of opposite party stands proved that they were not ready to accept the due installments and demanded for exorbitant amount. Now the defaulted installments became huge amount including penal interest. Balance payment of 9 installments were admitted by both parties. On going through the evidences and records this Forum found that complainant is ready to remit the defaulted installments in the year 2012 December itself. But the opposite parties demanded exorbitant amount, it is due to the adamant stand of opposite party future installments became due. Hence complainant is entitled to get back the cheque leaves and RC book of the vehicle that was entrusted to opposite party along with the Clearance certificate of the vehicle bearing No. KL 12 E 4517 on receipt of balance defaulted installments. Points No.1 and 2 are decided accordingly.

In the result, the complaint is partly allowed and opposite party No.2 is directed to give clearance certificate, RC book and cheque leaves to the complainant on receipt of the balance defaulted installments from the complainant. Complainant is directed to pay 9 installments of Rs.1580x9 = Rs.14,520/- (Rupees Fourteen Thousand Five Hundred and Twenty) with interest at the rate of 10% to the opposite party from 2012 December till payment. Opposite party No.2 is also directed to pay Rs.2,000/- (Rupees Two Thousand) as cost and Rs.2,000/- (Rupees Two Thousand) as compensation to the complainant. Both parties shall comply the Order within 30 days from the date of receipt of this Order.

Dictated to the Confidential Assistant, transcribed by him and corrected by me and Pronounced in the Open Forum on this the 13^th day of August 2015.

Date of Filing:15.12.2013.

PRESIDENT :Sd/-

MEMBER :Sd/-

MEMBER :Sd/-

/True Copy/

Sd/-

PRESIDENT, CDRF, WAYANAD.

APPENDIX.

Witness for the complainant:-

PW1. Abbas. Complainant.

Witness for the Opposite Parties:-

OPW1. Suresh. Auto Consultant.

OPW2. Faisal. Vehicle Finance.

Exhibits for the complainant:

A1(Series). Payment Receipts (7 Nos).

A2. Copy of Payment Chart.

A3(a). Receipt. Dt:27.06.2012.

A3(b). Temporary Receipt. Dt:10.09.2015.

A4. Receipt. Dt:10.10.2011.

Exhibits for the opposite parties:-

B1. Authorization letter. Dt:03.09.2014.

B2. Hypothecation Agreement.

B3. Copy of Schedule.

Sd/-

PRESIDENT, CDRF, WAYANAD.

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