Order No.  23  dt.  04/04/2017

       The case of the complainant in brief is that the complainant purchased a mini truck from o.ps. at the time of purchase o.ps. took and/or received 36 nos. of post dated cheques. The 1^st installment was started from 2.5.09 and the maturity date was 2.3.12. Afterwards on enquiry the complainant came to know that one of those post dated cheques amounting to Rs.9300/- was not encashed for which the complainant had to deposit the said amount in cash with o.ps. After completion of all the payment of installments to the o.ps., the o.ps. ought to have issued no objection letter for releasing the vehicle in his own name but o.ps. motivatedly withheld to issue no objection certificate. Due to inaction on the part of o.ps. the complainant prayed for direction upon the o.ps. for issuance of non objection certificate and also compensation for deficiency in service of Rs.40,000/- and for mental agony of Rs.40,000/- and for litigation cost of Rs.10,000/-.

            The o.ps. contested this case by filing w/v and denied all the material allegations of the complaint. It was stated that o.ps. have reputation in the sector of vehicle finance across the country. The borrower of the loan and the lender are bound by the terms and conditions of the applicable for the loan stipulated under the agreement. It was also stated that the case is barred by limitation and there is no cause of action against the o.ps. therefore this Forum has no jurisdiction to entertain the case. The relationship between the parties are creditor and borrower, there is/was no consumer relationship has been established and therefore the nature of complaint is not maintainable before this Forum. It was also stated by o.ps. that o.ps. provide financial help to the persons who intends to buy the said vehicle on the basis of hire purchase cum hypothecation agreement. The complainant approached to o.ps. for financial assistance and entered into a loan agreement with o.ps. The hire purchase cum hypothecation agreement was executed between the complainant and o.ps. and the loan was granted. The loan was for a fixed period of 35 installments starting from 2.5.09 to 2.3.12.  The complainant was to pay Rs.9410/- for the 1^st installment and Rs.9300/- for 2^nd to 35^th installments and the installment was to be paid within 2^nd of every English calendar month. It is clearly shown in the card dt.23.8.14 the complainant paid 34 installments out of 35 installments. Theo.ps. stated that they are ready to give no objection certificate if the complainant clears his dues of Rs.12,100/- and other interest applicable as per agreement. The o.ps. stated that the claim amount made by the complainant is based on conjecture and concocted claim amount. In view of the said fact o.ps. prayed for dismissal of the case.

            On the basis of the pleadings of parties the following points are to be decided:

1. Whether the complainant took loan from o.ps.
2. Whether the complainant paid the installments as per the terms and conditions of the loan agreement.
3. Whether the complainant paid all the installments within the stipulated period.
4. Whether the o.ps. made any deficiency in service in issuing the no objection certificate to the complainant.
5. Whether the complainant will be entitled to get the relief as prayed for.

Decision with reasons:

            All the points are taken up together for the sake of brevity and avoidance of repetition of facts.

            Ld. lawyer for the complainant argued that the complainant in order to purchase a vehicle obtained loan in 36 nos. The 1^st of such installment started on 2.5.09 and the date of maturity was fixed on 2.5.12. The complainant issued post dated cheques. Out of those cheques issued by the complainant one of the cheques amounting to Rs.9300/- was not encashed due to misplace of the same for which the complainant made cash deposit in respect of the said amount. Even after clearing of the entire dues o.ps. did not issue no objection certificate. Therefore the complainant filed this case praying for direction upon the o.ps. for issuing no objection certificate as well as other reliefs.

            Ld. lawyer for the o.ps. argued that the complainant paid the installments as stipulated in the loan agreement signed by both the  parties. It is also found that one of the installments was not encashed for which the complainant paid the said amount in cash. After the payment of the entire dues to o.ps. the complainant will be provided with the no objection certificate by o.ps. There was no deficiency in service on the part of o.ps. therefore o.ps. prayed for dismissal of the case.

            Considering the submissions of the respective parties it is an admitted fact that the complainant purchased one vehicle from o.ps. and the amount was paid by o.ps. The complainant before purchasing the said vehicle entered into an agreement with o.ps. for easy payment of monthly installment of the price of the said vehicle. It is also found from the materials on record that the complainant paid all the installments, only in respect of one installment the dispute arose which was brought to the notice by o.ps. to the complainant and the complainant deposited the said amount in cash. Therefore the complainant on his part complied the undertaking given by him to abide by the terms and conditions of the loan agreement. But it is curious enough that o.ps. in spite of receiving the entire amount failed to issue no objection certificate mentioning therein that no dues in respect of the payment of the amount from the complainant. Since the complainant failed to get the said certificate the vehicle could not be recorded in his name and the hypothecation of the vehicle could not be released due to non issuance of the certificate. In view of the facts and circumstances as stated above we hold that there was deficiency in service on the part of o.ps. and the complainant will be entitled to get the relief as prayed for including the direction upon the o.ps. for issuance of no objection certificate in favour of the complainant.     

            Thus all the points are disposed of accordingly.

            Hence, ordered,

            That the CC No.166/2013 is allowed on contest with cost against the o.ps. The o.ps. are jointly and/or severally directed to issue ‘no objection certificate’ in favour of the complainant and are further directed to pay to the complainant compensation of Rs.10,000/- (Rupees ten thousand) only for harassment and mental agony and litigation cost of Rs.2000/- (Rupees two thousand) only  within 30 days from the date of communication of this order, i.d. an interest @ 10% p.a. shall accrue over the entire sum due to the credit of the complainant till full realization.  

            Supply certified copy of this order to the parties free of cost.