Order No. 17 dt. 13/11/2017
The case of the complainant in brief is that the complainant for the purchase of a car entered into a loan agreement with Tata Motors Finance Ltd. vide loan agreement no. 50000209747 for Rs. 4,62,000/- and it was decided that the complainant would the amount by paying EMI of Rs. 12,780/- for 48 months. The complainant regularly paid EMI till 43 months and she was unable to pay last 5 installments due to some financial problems which was brought to notice of the o.p.s and she was assured by the o.p.s that the entire 5 installments will have to be paid by the complainant by making payment of interest @14% p.a. While the complainant was trying to find out the amount all on a sudden on 23/05/2012 the said car was taken away by the recovery agent illegally. The complainant made contact with the o.p. but no fruitful result was achieved for which the complainant filed this case praying for direction upon the o.p.s for releasing the car in question otherwise the entire amount paid by the complainant with interest as well as compensation of Rs. 5,00,000/- along with litigation cost of Rs. 30,000/-.
O.p.s contested the case by filing w/v and denied all the material allegations of the complaint. It was stated that the complainant needed financial assistance to purchase Tata Indigo Luxury Taxi car and for that the complainant approached Tata Motors Finance Ltd. to finance the said car. The complainant failed to repay the loan amount as per the schedule. The complainant was reminded to pay and clear the installment due on the loan amount but the complainant paid no heed to such reminder request. The o.p. 1, finance company was constrained to recall the loan vide recall notice dt. 30/12/2009 and demanded the due amount as per the terms and conditions of the loan agreement. As such the matter was referred to arbitration as per the relevant clause in the agreement. After going through the records the Ld. Arbitrator passed a final order dt. 22/12/2010 whereby the o.p. 1 was empowered to sell the vehicle for realization of the aforesaid amount. The o.p.s had carried out the legal order by selling the concerned vehicle and had realised its claim in a lawful manner. The amount received by selling the car by auction was Rs. 1,46,000/-. The complainant sent a letter to the o.p.s which was duly replied by the o.p.s. On the basis of the said fact the o.p.s prayed for dismissal of the case.
On the basis of the pleadings of the respective parties following points are to be decided :-
- Whether the complainant took loan from the o.p. 1 ?
- Whether the complainant paid the EMIs regularly ?
- Whether the o.p. 1 initiated arbitration proceeding as per the loan agreement ?
- Whether there was any deficiency in service on the part of the o.p.s ?
- 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 for the purchase of a car entered into a loan agreement with Tata Motors Finance Ltd. vide loan agreement no. 50000209747 for Rs. 4,62,000/- and it was decided that the complainant would liquidate the amount by paying EMI of Rs. 12,780/- for 48 months. The complainant regularly paid EMI till 43 months and she was unable to pay last 5 installments due to some financial problems which was brought to notice of the o.p.s and she was assured by the o.p.s that the entire 5 installments will have to be paid by the complainant by making payment of interest @14% p.a. While the complainant was trying to find out the amount all on a sudden on 23/05/2012 the said car was taken away by the recovery agent illegally. The complainant made contact with the o.p. but no fruitful result was achieved for which the complainant filed this case praying for direction upon the o.p.s for releasing the car in question otherwise the entire amount paid by the complainant with interest as well as compensation of Rs. 5,00,000/- along with litigation cost of Rs. 30,000/-.
Ld. Lawyer for the o.p.s argued that the complainant needed financial assistance to purchase Tata Indigo Luxury Taxi car and for that the complainant approached Tata Motors Finance Ltd. to finance the said car. The complainant failed to repay the loan amount as per the schedule. The complainant was reminded to pay and clear the installment due on the loan amount but the complainant paid no heed to such reminder request. The o.p. 1, finance company was constrained to recall the loan vide recall notice dt. 30/12/2009 and demanded the due amount as per the terms and conditions of the loan agreement. As such the matter was referred to arbitration as per the relevant clause in the agreement. After going through the records the Ld. Arbitrator passed a final order dt. 22/12/2010 whereby the o.p. 1 was empowered to sell the vehicle for realization of the aforesaid amount. The o.p.s had carried out the legal order by selling the concerned vehicle and had realised its claim in a lawful manner. The amount received by selling the car by auction was Rs. 1,46,000/-. The complainant sent a letter to the o.p.s which was duly replied by the o.p.s. On the basis of the said fact the o.p.s prayed for dismissal of the case.
Considering the submissions of the respective parties it is an admitted fact that the complainant in order to purchase the vehicle obtained loan from the o.p. 1. It is an admitted fact that the complainant in the petition of complaint stated that she failed to pay the regular EMI as per the loan agreement. It is found from the materials on record that at the time of obtaining loan the complainant entered into an agreement with the o.p. 1. In the loan agreement it was clearly stated that in case of borrower fails to pay the EMI the o.p. can opt for arbitration proceeding and in consonance with the said provision the o.p. 1 opted for arbitration proceeding. Ld. Arbitrator after hearing the parties passed an order whereby the o.p. 1 was empowered to sell the vehicle for realization of the defaulted amount. As per the order of the Ld. Arbitrator the o.p. 1 acted and since arbitration proceeding was initiated and an award was passed by Ld. Arbitrator therefore this Forum cannot be used for the purpose challenging the award passed by Ld. Arbitrator. The complainant could have challenged the award as per the provision laid down in Arbitration and Conciliation Act, 1996. Accordingly we hold that the case filed by the complainant is a misconceived one and it has got no merit for which the complainant will be entitled to get any relief.
Thus all the points are disposed of accordingly.
Hence, it is ordered,
that the case no. 267 of 2015 is dismissed on contest without cost against the o.p.s.
Supply certified copy of this order to the parties free of cost.
