DISTRICT CONSUMER DISPUTES REDRESSAL FORUM: BHADRAK

                                                   Present 1. Shri Raghunath Kar, President

                                                                2. Shri Basanta Kumar Mallick, Member

                                                                3. Afsara Begum, Member

Dated the 28th day of May, 2018

C.D. Case No. 60 of 2016

Sayed Azim Qudri

S/o Sayed Ersad Ali

Vill: Mullahasahi

Po/Ps: Puruna Bazar

Dist: Bhadrak                                

                                            ………Petitioner/Complainant

                                       Versus

1. The Branch Manager

Shriram Transport Finance Co. Ltd.

At: Jena Complex, 2nd Floor

Chhapulia, Bypass

In front of Vishal Megamart

Po/Ps/Dist: Bhadrak

2. Shriram Transport Finance Co. Ltd.

Administrative Office, 101-105

1st Floor, B- Wing

Shiv Chambers

Sec- II, CBD, Belapur

Navi Mumbai, 400614

                                                         ………………Opposite Parties

Advocate for Complainant: Mr. Debasis Nayak & Associates

Advocate for O.Ps: Mr. Umakanta Panda & Associates

Date of Hearing: 12.03.2018

Date of Order: 28.05.2018

BASANTA KUMAR MALLICK, MEMBER 

        The dispute arose out of complaint filed by the complainant alleging deficiency of service and unfair trade practice against the O.Ps.

      The brief facts of the complaint are to the effect that the complainant is an unemployed young man intended to start a transport business in order to earn his livelihood and to maintain his family. Due to paucity of funds, complainant approached OP No. 1 for credit support in order to acquire a truck which was agreed by the said OP and accordingly sanctioned a sum of Rs 6,10,000/- in favour of the complainant which was repayable in 45 equated monthly installments including interest @ 19750/- per month commencing from 20.12.2012 to 20.08.2016. The complainant acquired the truck with the credit support of O.Ps and submitted 3 numbers of undated signed blank cheques along with 45 numbers of post dated cheques on demand of O.Ps before disbursement of loan. Further the complainant raised that he had been paying the loan installments to the O.Ps as per repayment schedule as the O.Ps orally communicated about the number of installments, the amount of EMI and the commencement of repayment at the time of documentation but did not supply the copies of sanction letter, repayment schedule, and loan-cum-hypothecation agreement inspite of sincere requests made by the complainant. However the complainant went on repaying the loan installments regularly and when the loan was entirely repaid, complainant asked the O.Ps to issue NOC (No Objection Certificate) but the O.Ps did not take any step or any interest to provide the same, rather demanded payment of late payment charges and other costs amounting rupees more than a lakh which is not genuine. Despite repeated requests and persuasions, O.Ps did not prefer to release NOC and even did not responded the complainant. Finally the complainant issued notice to the O.ps through his advocate on 25.04.2016 requesting to provide NOC and other documents within a period of seven days which also not replied and even not complied by the O.Ps as a result of which complainant took shelter in this Forum with a prayer to issue direction to O.Ps to issue NOC in favour of complainant along with cost and compensation.       

      The complainant subsequently filed an interim petition praying for a direction to the O.Ps not to repossess the case truck till final order comes out which was vehemently opposed by the advocate engaged to conduct the case on behalf of O.Ps and thereafter none of the O.Ps appeared in person nor through any advocate nor authorized employee to file written version in their defense as a result of which all O.Ps were set ex-parte on failure of attending the Forum on six dates. After the O.Ps were set ex-parte, the complainant was given opportunity of being heard.

      We have gone through the complaint and perused the materials on record. It is evident that the complainant availed a loan of Rs 6,10,000/- from the O.Ps on execution of relevant documents and on submission of 45 numbers of post dated cheques together with 3 numbers of signed and undated blank cheques as demanded by the O.Ps. The credit so availed by the complainant was repayable in 45 equated monthly installments @ 19775/- per month commencing from 20.12.2012 to 20.08.2016. Accordingly the complainant claims to have paid the entire amount of loan availed from the O.Ps and demanded for issue of No Objection Certificate along with return of signed blank cheques submitted at the time of documentation. Although there is no evidence in support of his claim, the complainant claims to have approached the O.Ps in several times for the aforesaid purpose but no positive result was yielded. Finally the complainant served notice upon the O.Ps through his advocate requesting issue of documents within a period of seven days failing which the complainant would take shelter in court of law. Non issuance of the required documents in favour of the complainant inspite of several requests amounts to deficiency of service.

     The complainant has claimed to have paid all loan dues to the O.Ps but the statement of accounts available on record reveals that the complainant has paid Rs 8,10,784/- as against total demand of Rs 8,88,750/- which was repayable within 20.08.2016. In this manner the complainant has approximately paid less amounts of Rs 78,000/- which was repayable in next 5 months and it is also evident that the complainant has paid an advance installment as on March, 2016. This clearly indicates that the complainant has not defaulted in payment of loan dues failing due at the end of March, 2016.

     Further it is also observed that the O.Ps have charged and realized overdue interest exorbitantly which is considered as  unfair and resultantly complainant was compelled to seek the documents such as, loan-cum-hypothecation agreement, sanction letter and repayment schedule from the O.Ps but the O.Ps did not care for complying the notice of the complainant which leads to suspicion of some sort of manipulation in the documents and also provides ample scope to believe that the O.Ps are not clean and clear in maintaining transparency in the documents and loan account. Therefore this Forum held the O.Ps are partly guilty and deficient in providing proper service to the complainant and non discloser of rate of interest and penal interest, in the event of default in payment, indicates malafide intention of the O.Ps is considered as unfair trade practice.

     In view of the above analysis and taking the material evidences on record in to consideration, it is ordered as under.          

ORDER

       In the result, the complaint be and the same is partly allowed ex-parte against the O.Ps. O.Ps are directed to realize Rs 78,000/- as residue loan (unpaid) including interest and also allowed to charge @ 2% P.A as penal interest on the overdue portion of the loan only as and when necessary. O.Ps are to calculate interest accordingly and communicate the same to the complainant within a period of 30 days from the date of receipt of this order. Further the complainant should be given two months time to clear up all the loan dues including interest failing which the O.Ps are at liberty to realize the amount using legally approved recovery mechanism.    

     This order is pronounced in the open Forum on this 28th day of May, 2018 under my hand and seal of the Forum.