Date of Filing: 11-08-2015 Date of Final Order: 19-04-2017
Sri Gurupada Mondal, President.
This is an application under Section 12 of CP Act, 1986 filed by one Smt. Subhra Adhikari against the Branch Manager, Shriram Transport Finance Co. Ltd., Cooch Behar and the Manager, Shriram Transport Finance Co. Ltd. 101/105 Shiv Chambers, 1st floor, B. Wing, Sector-II,CBD, Belapur, Navi Mumbai praying for direction to the OPs to issue NOC for cancellation of hypothecation on Registration Certificate to produce Loan Agreement, direction to submit statement of Account alongwith rate of interest, Rs. 25,000/- for mental pain, agony and unnecessary harassment, Rs.25,000/- for unfair trade practice and deficiency of service and Rs.10,000/- towards litigation cost.
The case of the Complainant in short is that OP No.1 & 2 run a financial organization and carry on business under the name and style “Shriram Transport Finance Co. Ltd.”. The Complainant intended to purchase a three-wheeler Passenger Car (Mahindra Alfa-P) for earning her livelihood by means of self-employment but due to pecuniary condition, the Complainant approached OP No.1 through local Representative for financial assistance. The OPs promised to pay a loan of Rs.60,000/- to the Complainant @ 12% interest per annum. The Complainant took the said loan from the OPs and her monthly instalment was @Rs.3490/- for 23 months, which was ended on 05.08.14. The Complainant paid Rs.80,525/- to the OPs.
Further case of the Complainant is that at the time of disbursing the said loan, the OPs took some signatures on some blank papers as well as on non-judicial stamp of Rs.10/- and Rs.50/- and on some printed forms. The OPs also took some blank cheques. The Complainant on good faith signed on the said blank cheques. After completion of all formalities by the Complainant and her Guarantor, the said loan was delivered to the authorized dealer and the vehicle was handed over to the Complainant being No. WB 63/4629. As per terms and conditions of loan agreement, the Complainant paid Rs.1,01,933/- instead of Rs.80,525/- through cash and cheques and to that effect, the OPs issued money receipts in favour of the Complainant.
Further case of the Complainant is that after the liquidity of the said loan, the Complainant made several contacts with the OPs to obtain “No Objection Certificate” with a view to cancellation of hypothecation in favour of OP No.1 on Registration Certificate but no response was received from the OP. The Complainant received a summary statement from the OP with outstanding dues of the said loan amounting to Rs.20,574/-as on 22.06.15 which the Complainant had already paid. The attitudes of the OPs are illegal and beyond the provisions of law and guidelines issued by the Reserve Bank of India. The OPs have been claiming excess rate of interest as stated to the Complainant. The Complainant talked with Mr. Abhisekh. The Complainant requested him for a copy of Agreement and up-to-date Statement of Account disclosing the rate of interest but the OP demanded Rs.20,574/-and threatened to take possession of the said vehicle. The motive of the OPs was aggressive in nature. Accordingly, the Complainant filed the instant case against the OPs with a prayer to direct the OPs to issue NOC for cancellation of hypothecation of the alleged vehicle, Statement of Account alongwith rate of interest, compensation of Rs.25,000/- for mental pain, agony and unnecessary harassment, Rs.25,000/- for unfair trade practice and deficiency of service and Rs.10,000/- for litigation cost.
The OP No.1 filed w/v denying all material allegations contending inter-alia that the instant complaint is not maintainable. The complaint is barred under the provisions of order - 2 Rule -2 of CPC and the complainant has no cause of action to file the instant case.
Specific case of OP No.1 is that Shriram Transport Finance Co. Ltd. has a Branch Office at Cooch Behar and given a loan of Rs.80,525/- to the Complainant on 31.08.12 to purchase Mahindra Alfa-P being Registration No. WB 63-4629 by entering into a Loan-cum- Hypothecation Agreement with the Complainant, Guarantor and the financer. It is also alleged that the outstanding dues of the Complainant is Rs.23,595/- up to 04.10.15. The Complainant is a habitual defaulter and failed to deposit the monthly instalment on regular basis and the OPs sent legal notice but all went in vain. The Complainant paid Rs.1,01,933/- to the OPs but due to chronic default, he failed to deposit monthly instalment of Rs.23,595/-. The OP No.1 issued NOC in respect of loan agreement after approval of the management but the Complainant did not turn up to take NOC. The OP No.1 sent a letter on 09.12.15 to the borrower to collect NOC but due to ill-motive or gain, she did not take the NOC from the Office. According to the OP, the Complainant is not a consumer as per Section 2(d) of CP Act and the OP No.1 never practiced unfair trade with the Complainant as per Section 2(r) of the said Act. The OP No.1 was defrauded by the borrower. On the basis of the aforesaid facts, the OP No.1 prayed for dismissal of the case with cost.
The OP No.2 did not turn up to contest this case inspite of service of summon upon him. The case was heard ex-parte against the OP No.2.
Considering the complaint filed by the Complainant and written objection filed by the OP, the following points are necessary to discuss to come into a conclusion.
POINTS FOR CONSIDERATION
- Is the Complainant Consumer as per Section 2(1)(d)(ii) of the C.P. Act, 1986?
- Has this Forum jurisdiction to entertain the instant complaint?
- Have the O.Ps any deficiency in service as alleged by the Complainant and are they liable in any way?
- Whether the Complainant is entitled to get relief/reliefs as prayed for?
DECISION WITH REASONS
We have gone through the record very carefully. Perused the entire documents in the record and also heard the argument as advanced by the parties at length.
Point No.1.
The Complainant has filed the instant case against the Branch Manager, Shriram Transport Finance Co. Ltd., Cooch Behar and the Manager, Head Office of the said Branch. It reveals from the case record that the Complainant took a loan of Rs.60,000/- from the OP on interest and the said loan was payable by 23rd monthly instalments commencing from 05.10.12 to 05.08.14 and to that effect there was a contract in between them. The Complainant paid her dues to the OP month by month. Therefore, the Complainant is a consumer as per provisions under Section 2(d) of the CP Act. This point is, therefore, decided in favour of the Complainant.
Point No. 2.
The Complainant took a loan of Rs.60,000/- on interest from the OP/Institution. The Branch Office of the OP is situated within the Cooch Behar town. The transaction in between the Complainant and the OP took place within the jurisdiction of this Forum. The claim of the Complainant is within the statutory limit. Accordingly, we hold that this Forum has territorial jurisdiction as well as pecuniary jurisdiction to try this case.
Point No. 3 & 4.
Both the points are taken up together for convenience of discussions as well as the points are related with other. It reveals from the documents filed by the Complainant that the Complainant took a loan of Rs.60,000/- from the OP/Institution and to that effect the OP prepared a schedule of repayment of loan. As per schedule, the Complainant had to pay Rs.3,745/- by fifth of each month. The first instalment commenced on 05.10.12 and the last instalment was Rs.3,490/-. In this way, the Complainant had to pay 23rd instalments amounting to Rs.80,525/-. It is evident from the documents that the Complainant took the loan from the OP in order to purchase a three wheeler Light Motor Vehicle. The said vehicle was registered in the name of the Complainant viz. Subhra Adhikari. The rate of interest has not been mentioned in the documents filed by the Complainant as well as by the OP. It is evident from the documents filed by the Complainant that the Complainant paid Rs.1,01,933/- in eleven instalments. It is also evident from the documents filed by the Complainant that the Complainant failed to pay the instalments to the OP as per schedule prepared by the OP. The Complainant paid Rs.60,000/- on 18.02.15 but the last payment date was on 05.08.14 but the Complainant paid excess amount of what she would have to pay i.e. Rs.80,525/-. The OP is claiming the outstanding dues of Rs.23,995/-. Some fine was imposed upon the Complainant due to non-payment of dues on regular basis. The Complainant was supposed to pay Rs.80,525/- to the OP but the Complainant paid Rs.1,01,933/-. Therefore, at present, the Complainant has no dues to pay. During pendency of this case, the OP issued NOC in favour of the Complainant.
The Complainant has prayed for direction to issue NOC for cancellation of hypothecation in favour of the OPs on Registration Certificate alongwith direction to the OP No.1 to produce Loan Agreement, Statement of Accounts with rate of interest, compensation of Rs.25,000/-, Rs. 25,000/- for unfair trade practice and deficiency of service and Rs.10,000/- as litigation cost. The OP has received her NOC during the pendency of the case. As such, no direction is required to the OPs to issue NOC for cancellation of hypothecation and there is no necessity to direct the OP to produce Loan Agreement as well as rate of interest. Both the points are disposed off accordingly.
Hence,
Ordered,
That the present Case No. CC/75/2015 be and the same is allowed on contest in part with cost of Rs.3,000/-.
The OPs are here directed to pay a compensation of Rs.5,000/-to the Complainant for causing mental pain, agony and unnecessary harassment to the Complainant and Rs.3,000/- for their unfair trade practice and deficiency of service.
The aforesaid amounts shall be paid to the Complainant by the OPs jointly and/or severally within 30 days from the date of passing the order, and in case of making default, the OPs shall pay Rs.25/- for each day’s delay and the amount so accumulated be deposited in the Consumer Legal Aid Account.
Let a copy of the final order be made available and be supplied free of cost to the concerned party/Ld. Advocate by hand/Registered Post with A/D forthwith for information and necessary action as per Rules.
Dictated and corrected by me.
