ORDER

BY SRI.H.R.SRINIVAS, PRESIDENT.

1.     This is the Complaint filed by the Complainant U/S Section 12 of Consumer Protection Act 1986, against the Opposite Parties (herein referred in short as O.Ps) praying the Forum to direct the OP to inform the CIBIL to remove the negative mark report and issue loan closure and no objection certificate to Electro Plasts Private Limited and to its guarantor (Complainant) and to direct the OPs to pay Rs.10,00,000/- as compensation and cost of the proceedingsand other reliefs as this Forum deems fit under circumstances of this complaint.

2.     The brief facts of the complaint are that:  Complainant is the managing director of Electro Plasts Private Limited, OPs sanctioned Rs.10,00,000/- to purchase the car for the company on 30.07.2008 and the Complainant’s stood as guarantor.

3.     On 26.02.2010 OPs seized the said vehicle for default and sold the same illegally and sent the demand notice for the balance amount which was questioned by him by filing a complaint in Com.No.1098/2011 before theII Addl. District Forum Bangalore which allowed the same and awarded compensation for Rs.1,00,000/- on the OP and directed to pay Rs.3,000/- as advocate fee.  The same was complied by OP on 13.03.2013.

4.     It is further contended that, in view of the above order and settlement, OP has reported  to CIBIL i.e. some of Rs.9,64,960/- is still pending  towards the auto loan and declared that the entire amount as written off.   Complainant is desperately in need of a vehicle and applied for  vehicle loan to various banks from November 2015 and the banks checked his CIBIL score and declined to give him the loan to purchase a vehicle though his CIBIL score was 860 points. He is unable to buy a new car for his commutation due to the deliberate act of the OP.  OP has done the same solely with an intention of harassing and causing inconvenience to him by spoiling his credit score.  There is deficiency in service and negligence in service on the part of OPs and hence prayed the Forum to allow the complaint and pass award as prayed.

5.   Upon the service of notice, O.Ps appeared before the Forum and filed their version contending thatthe Complaint is not maintainable either in law or on facts and has mentioned misleading facts in the complaint. There is no cause of action for the complainant to file this complaintand Complainant is not entitle for compensation of Rs.10,00,000/- and for NOC when the company is not a party and that it has not cleared the balance of amount due.  Complainant cannot seek relief of removal of his name from CIBIL as he is a co-applicant and a guarantor for the amount borrowed money for purchasing the vehicle in the name of M/s.Electro Plasts Private Limited and agreed to repay the loan amount in 60 EMI’s of Rs.22,328/-. There was a balance of Rs.13,39,200/-. Notice was issued in accordance with law to repossess the vehicle for default. After reprocessing the same it was sold for Rs.4,24,080/- and the balance still to be paid by the complainant and the company was Rs.9,15,120/-. 

6.     It is stated that, a complaint was filed by M/s Electro Plasts Private Limited, seeking compensation of Rs.10,00,000/- in CC.No.1098/2011 and the District Forum allowed the complaint and directed them to pay Rs.1,10,000/- to the complainant.  The said complaint was filed by Electro Plasts Private Limited, whereas this complainant is not filed by the said complainant. In the said order of the Forum, it is not mentioned that the complainant is not liable to pay the remaining amount to the OP.  In the complaint also,Complainant did not claim regarding set off. Hence this complainant cannot take shelter under the said order.  Since there is a balance of amount to be paid in respect of said vehicle loan, the same has been reflected in the CIBIL.  Hence unless the said amount is cleared, the name of this Complainant who is a guarantor  to the said loan cannot be removed. There is still balance of Rs.20,15,896/- including interest from the Complainant.  It has denied all the allegations made in each and every para of the complaint and further contended that there is no cause of action for the complaint and taking advantage of his own negligence has filed this complaint. Hence  prayed the Forum to dismiss the complaint.

7.     In order to prove the case, complainant only has filed his affidavit evidence and produced documents. OP has not adduced any evidence on their behalf. Arguments Heard.The following points arise for our consideration:-

1) Whether the complainant has proved

    deficiency in service on the part of the

    Opposite Parties?

2)  Whether the complainant is entitled to

             the relief prayed for in the complaint?

8.     Our answers to the above points are:-

POINT NO.1& 2:      In the Negative.

                                For the following.

REASONS

POINT No.1 & 2:-

9.     It is not in dispute that the Complainant is a borrower along with M/s.Electro Plasts Private Limited, which borrowed loan from OP to the extent of Rs.10,00,000/- to purchase a car and due to default in paying the EMI's, the same was seized and auctioned for Rs.4,24,080/-for which M/s Electro Plasts Private Limited filed complaint before the II Addl. District Consumer Forum Bangalore which passed an order holding that there is deficiency in service in not following the procedure for repossessing the same, and awarded Rs.1,00,000/- as compensation to be paidalong with interest at 12% per annum and Rs.3,000/- towards advocate fee.

10.   Nowhere in the said order, the Forum has given set off or absolved the said Complainant from paying the balance of the loan amount. On perusing the same according to OP  a sum of Rs.8,03,520/- as on 27.07.2011 was due and on repossessing and selling the car, they realized Rs.6,75,000/- in public auction and the balance is to be paid by the M/s Electro Plasts Private Limited along with this complainant who according to himself is the  guarantor.  Unless and until the entire amount is paid, no objection certificate or clearance certificate can be given in respect of the loan.  In view of the non-clearing the loan in its entirety, and complainant having failed to prove that he has cleared the loan amount, it cannot be held that the loan is cleared and direct the OPs to issue clearance certificate and request the CIBIL to remove the said entries.In CPJ 100 – January - Part 2018 – MohitSharda& Bank of Baroda it is held by – National Consumer Disputes Redressal Commission, New Delhi that the name found in CIBIL – List of defaulter, for which loan not disbursed – Complainant held not a consumer and complaint before this Forum is not maintainable.

11.   On perusing the CIBIL documents produced by the Complainant,it is true that his CIBIL score is 860 and even then, he has not been provided the loan by the banks to whom he has approached, for which OP cannot be held responsible. There is no consumer relationship between the CIBIL and the Complainant and deficiency in service made out on the part of the OP.   Hence we answer POINT NO.1 IN THE NEGATIVE and in the result complainant is not entitle for any of the reliefs and we answer also POINT NO.2 IN THE NEGATIVEand pass the following:

ORDER

1. The complaint is hereby dismissed. Parties are directed to bear their own cost.
2. Send a copy of this order to both parties free of cost.

Note:You are hereby directed to take back the extra copies of the Complaints/version, documents and records filed by you within one month from the date of receipt of this order failing which the same will be destroyed as per the C.P. Act and Rules thereon.

(Dictated to the Stenographer over the computer, typed by him, corrected and then pronounced by us in the Open Forum on this 30^th MARCH 2019)

ANNEXURES

1. Witness examined on behalf of the Complainant/s by way of affidavit:

Copies of Documents produced on behalf of Complainant/s:

Doc.No.1: Copy of the Order dated 01.08.2012 passed by II Addl. District Consumer Forum Bangalore in CC.NO.1098/2011.

Doc.No.2: Copies of CIBIL Credit Information Report.

2. Witness examined on behalf of the Opposite party/s by way of affidavit:

                        Nil -

Copies of Documents produced on behalf of Opposite Party/s

• Nil -

MEMBER                        PRESIDENT

A*