Chandigarh

DF-II

CC/212/2019

Sanjiv Thakur - Complainant(s)

Versus

Tata Motors Finance Limited - Opp.Party(s)

Adv. Rohit Nalik & Rajinder Kumar Dogra

08 Aug 2022

ORDER

 DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-II,

U.T. CHANDIGARH

 

Consumer Complaint  No	:	212 of 2019
Date  of  Institution	:	09.04.2019
Date   of   Decision	:	08.08.2022

 

 

 

 

 

Sanjiv Thakur s/o Sh.Om Chand, R/o H.No.2172/2, Ambedkar Colony, Dhanas, Chandigarh. 

             …..Complainant

 

Versus

 

1]  Tata Motors Finance Limited (Formerly Known as Sheba Properties Ltd.), SCO NO.11, First Floor, Sector 26-D, Madhya Marg, U.T., Chandigarh.

 

2]  Tata Motors Finance Limited (formerly known as Sheba Properties Ltd.), 1-Think Techno Campus, Building A, 2^nd Floor, Off. Pokharan Road 2, Thane West 400601 Mumbai through its Manager-in-charge.

 

3]  Tata Motors Finance Limited (Formerly known as Sheba Properties Ltd.), Regd. Office 10^th Floor, 106-A & B, Maker Chambers III, Nariman Point, Mumbai through its Officer-in-Charge.

 

4]  Tata AIG General Insurance Company Limited, SCO 232/234, Sector 34-A, Chandigarh through its Manager.

 

    ….. Opposite Parties

 

 

BEFORE:  SMT.PRITI MALHOTRA        PRESIDING MEMBER 

                    SH.B.M.SHARMA                 MEMBER

                               

For Complainant : Sh.Rohit Malik, Advocate

For OPs         : Sh.Gaurav Bhardwaj, Adv. for OPs No.1 to 3

   Sh.Sahil Abhi, Adv. for OP No.4.

 

PER PRITI MALHOTRA, PRESIDING MEMBER

         Concisely put, the complainant, in order to earn his livelihood purchased Tata Indigo ECS TDI Car for an amount of Rs.5,26,886/- after availing loan of Rs.3,80,000/- from OP No.1 in Dec., 2015 and got it registered vide Regd. No.CH-02-AA-6824.  It is stated that the said loan of Rs.3,80,000/- was to be repaid to Op No.1 in 48 equated monthly installments of Rs.11,844/-.   It is averred that the complainant was regularly paying the loan installments, but erred in paying two installments in the year 2017 due to financial crisis, which created an overdue installment/outstanding amount of Rs.48,071.45 towards him, which he cleared by depositing said amount on 22.10.2018 (Ann.C-7).  It is also averred that one installment in Jan., 2019 was defaulted due to unfortunate demise of his near-dear, but the complainant kept on paying the remaining installments from 2.2.2016 onwards and as such paid a total sum of Rs.4,26,590.38 by way of 36 installments and the balance amount to be repaid by the complainant was Rs.1,41,921.62 of remaining 12 installments out of 48 installments per balance sheet issued by OP No.1 dated 27.3.2019 (Ann.C-11).

         It is submitted that on 22.3.2019 when the complainant was away to Phagwara, Punjab after dropping passengers, five men having knives forcibly took the car of the complainant and ran away.  The complainant reported the matter to the police vide An.C-12.  It is also submitted that the complainant later on came to know that the vehicle was forcibly taken away by the recovery agents of OP No.1.  It is further submitted that as per Contract details dated 27.3.2019 of OP NO.1 the car in question was in the mode of getting auctioned by it (Ann.C-14).  It is pleaded that the OP No.1 arbitrarily and illegally seized the vehicle of complainant without issuing any notice or any opportunity of being heard. Alleging the said act and conduct of the OPs as gross deficiency in service and unfair trade practice, the complainant preferred the present complaint.

 

2]       The OPs No.1 to 3 did not file reply and evidence, rather filed application for dismissing the complaint wherein the OPs No.1 to 3 while admitting the factual matrix of the case, stated the complainant obtained loan facility of Rs.3,80,000/- for purchase of the vehicle in question and executed a Loan Agreement dated 26.12.2015 and agreed to abide with terms & conditions of loan agreement.   It is stated that as the complainant failed to adhere to the financial discipline of the agreement and did not pay the agreed amount, resultantly, an amount of Rs.2,73,544.54 became due against him as on 8.2.2018, so the matter was referred to Sole Arbitrator Mr. S. P. Panesar, who issued notices to the complainant for appearance but complainant did not appear and proceeded exparte.  It is stated that the ld. Arbitrator passed the award on 5.5.2018 (Ann.R-3) in favour of the answering OPs for recovery of the amount with liberty to sell the vehicle for recovery of outstanding amount.   It is submitted that after passing the arbitration award, the complainant though made some part payments, but failed to clear the outstanding amount against him, so the vehicle was repossessed as per award dated 5.5.2018 and consequently sold by answering OPs.   It is pleaded that still an amount of Rs.1,06,596/- is due against the complainant as per Account Statement dated 25.4.2019 (Ann.R-4). Denying other allegations, the OPs have stated that the present complaint is liable to be dismissed.

3]       The OP NO.4 – Tata AIG General Insurance Company has also filed reply and while admitting the issuance of insurance policy in respect of the vehicle in question, stated that since no averments is qua the answering OP No.4, each and every averments s denied and wrong for want of knowledge.  It is stated that the insurance policy does not cover the risk of taking possession by the finance company on account of default in payment of regular installments.  Denying other allegations being not related to, the OP No.4 has prayed for dismissal of complaint qua it.

4]       Parties led evidence in support of their contentions.

5]       We have heard the ld.Counsel for the parties and have perused the entire record. 

6]       Admittedly, the complainant purchased the vehicle in question after getting loan of Rs.3,80,000/- from OP No.1, duly insured with OP No.4.   From the record, it is clear that during the period from 2016 to 2018, the complainant was regular in making payment of loan installments except only two loan installments in June & July, 2017, which has been defaulted by him and that has been paid by him later on in Oct., 2018 as is clear from Ann.C-6  &  C-7 respectively.   

7]       The OPs No.1 to 3 have claimed that arbitration award has been passed and the complainant was duly intimated about the arbitration proceedings and due notices were issued to the complainant for appearing and contesting whereas nothing of the kind has been made part of the record by the Opposite Parties No.1 to 3.  Rather it transpires from the record that the OPs No.1 to 3 unilaterally and arbitrarily acted upon in haste and caused wrongful loss to the complainant not only in monetary terms but also caused grave mental agony and harassment as a result of forcible repossession of the vehicle in question in mid of the road while complainant was plying the vehicle for earning his livelihood. The OPs No.1 to 3 have admitted in their version that the vehicle has been repossessed and auctioned during the period 2018-2019. For want of any evidence on record showing the legality qua repossession of the vehicle in question, it reveals that no due procedure had been followed by the OPs No.1 to 3 while repossessing the vehicle in question.

8]       The OPs No.1 to 3 though claimed in their application that they have auctioned the vehicle in question and still certain amount is outstanding against the complainant, but in this regard no document has been brought on record by the OPs No.1 to 3.  If for the sake of arguments, it is presumed to have been auctioned, in that case also, the OPs No.1 to 3 have acted arbitrarily and illegally by not intimating the complainant and no due notices as per law have been issued to the complainant regarding auctioning of the vehicle in question in order to give him an option to come forward to exercise his option during the course of auction proceedings to either clear the outstanding loan amount or win the bid by participating in it. 

9]       Since nothing concrete of the kind has been placed on record regarding vehicle in question being auctioned by the OPs No.1 to 3 by following due legal procedure to recover the balance loan amount, so the OPs No.1 to 3 are bound to return the vehicle in question to the complainant in a roadworthy condition, failing which they shall be liable to pay the cost/value of the vehicle i.e. IDV- Insured Declared Value of the vehicle as assessed while issuing insurance policy by OP No.4, sister concern of OPs No.1 to 3 for the period 2018-2019, which comes to Rs.3,31,380/- vide policy Ann.C-4. 

10]      From the above discussion and findings, we are of the opinion that it is proved that the OPs No.1 to 3 have acted illegally and arbitrarily, which not only amounts to gross deficiency in service on their part but also amounts to their indulgence into unfair trade practice. Therefore, the present complaint stands allowed against OPs No.1 to 3 with direction to return the vehicle in question to the complainant in a roadworthy condition, failing which they shall be liable to pay the value of the vehicle i.e. IDV- Insured Declared Value of the vehicle of Rs.3,31,380/- (Ann.C-4) minus the outstanding loan amount of Rs.1,06,596/- as stands on 25.4.2019 (Ann.R-4 Pg-30) i.e. they shall pay the remaining amount of Rs.2,24,784/- along with interest @10% p.a. w.e.f. 1.5.2019 i.e. after alleged auction/sale of vehicle in question till realization.  The OPs No.1 to 3 are also directed to pay a compensation amount of Rs.One Lakh to the complainant for causing him immense mental agony & harassment due to their illegal, deficient and unfair act & conduct, apart from paying litigation cost of Rs.20,000/-.

         This order shall be complied with by the Opposite Parties No.1 to 3 within a period of 30 days from the date of receipt of its certified copy, failing which it shall be liable to pay additional compensatory cost of Rs.25000/- apart from above relief.

 

11]      The complaint qua OP No.4/Insurance Company stands dismissed.  

         The certified copy of this order be sent to the parties free of charge, after which the file be consigned.   

Announced

8^th August, 2022                                                                      Sd/-

 (PRITI MALHOTRA)

PRESIDING MEMBER

 

Sd/-

(B.M.SHARMA)

MEMBER