Orissa

Rayagada

CC/15/46

Shri Bhawani Shankar Acharaya, - Complainant(s)

Versus

The Branch Manger, Shriram Transport Finance Company Ltd., and others - Opp.Party(s)

Self

17 Sep 2016

ORDER

DISTRICT   CONSUMER DISPUTES  REDRESSAL FORUM, RAYAGADA,

C.C No.46/ 2015

P R E S E N T .

Sri Pradeep Kumar Dash, LL.B                                                President.

AND

Sri Gadadhara Sahu,B.Sc.                                            Member 

 

Shri Bhawani Shankar Acharya, S/o late Ganesh  Acharya, Resident of Old Fire Station Road, Near Uma Shankar Talkies, New Colony, Rayagada.

                                                                                                                                                                                                                                    ………..Complainant

                                                                         Vrs.

 

1. The  Branch Manager, Sriram transport Finance Company Ltd., Parvathipuram, Vizianagaram District , Andhra Pradesh.
2. Sriram Transport Finance Company Ltd., Regd. Office, Mookambika Complex,3^rd Floor, No.4, Ladi Desika Road,Mylapore,Chennai,in600 004.
3. Admn.Office: Sriram Transport Finance Company Ltd.,101-105,1^st Floor, B.Wing, Shiva Chambers, Sector 11,C.B.D.Belaur, Navi Mumbai -400614.

                                                                                                                                                                                                                                    ……………Opp.Parties

               

Counsel for the parties:

For the complainant: Sri K.K.Sahu & Associate Advocate,Rayagada.

For the O.P : Sri K.Ch.G.S.Mumundan,Advocate,Rayagada.

 

 

                                                                   JUDGMENT

The case of the complainant  is that he has availed  loan amount of Rs.14,,70,000/-  for purchase of vehicle bearing Regn. No.OR 18C  1285 from the OP through finance  and the agreement rate is Rs.19,57,019 and regularly payment  installments without any default.  Out of the agreement rate the complainant ha paid the full amount and also additional amount  and the total payment made by the complainant is Rs.21,71,384/-  and asked the OP ;to  give the NOC but the OP intimated that a further sum of Rs.50,000/- was due against  said account and accordingly the complainant has deposited the same on 22.1.2015 and it was duluy acknowledged by the Ops but to his utter surprise the Ops are now showing balance of Rs.3,68,345/-  as on 22.1.2015 and refuse to issue the NOC.   The Ops agreed to give the financial service on payment of normal interest prescribed by the RBI  and they have not disclosed the rate of interest  when they have obtained the signature  and executed the loan agreement. Now the interest charged by them is more than 45% of the finance amount. This definitely an unfair trade practice     and this is an arbitrary action of the Ops to grab the innocent customers.  The Ops have threatened the financed vehicle at any time if the complainant will  make any default to pay the balance amount  as such put the complainant to fear and mental agony . Hence, prayed to direct the Ops to  issue NOC against the said vehicle  and for mental agony and financial hard caused to the complainant  award monetary compensation   and cost of litigation and such other relief as the forum deem fit and proper. Hence, this complaint.

Being noticed, the O.p appeared through their advocate and filed written version inter alia denying the petition allegations on all its material particulars. It is stated by the O.P  that the complainant has availed  loan  of Rs.14,70,000/-  and purchased truck   The complainant did not pay the installments as per the terms  of the agreement and also defaulted the payments . The complainant also availed different loans in respect of the said vehicle under the agreement No.PARVA013280002. The complainant is entitled to receive NOC on payment of the entire loan dues and also other loans availed under the agreement. The all allegations made in the complaint petition are invented for the purpose of taking interim order and run the  transport business out of the truck.  The OP 2 has got right to seize and possess the financed truck as per the terms of the agreement as such no prior notice is required to be issued . The complainant has taken the loan from OP1  and plying on the road for transport business purpose, so it is purely commercial transaction hence the complaint is not a consumer under the C.P. Act. Hence prayed to  vacate the interim order and dismiss the complaint by  imposing exemplary costs against the complainant.                                                                                      FINDINGS

We perused the complaint petition, documents filed by both parties and written version filed by the parties and heard both the parties. It is the case of the parties that, the complainant  has availed loan  of Rs.14,70,000/-  on 28.03.2011  for purchase of a  vehicle vide Regn.   No. OR 18C 1285   and  agreement No.PARVA0103280002   and agreed to repay the amount loan with interest  @ Rs.19,57,219/-   in 46 instalments. Both  the parties have not denied the facts in this case. The complainant  also agreed  that he has received different loan in the same agreement for Rs.92,000/-  which was not admitted by the Ops . As per the  ledger extracts filed by the complainant it shows that the complainant has paid Rs.21,71,384/- for the said loan agreement till 20.01.2015. When the complainant asked the OP to give the NOC, he has intimated that further a sum of Rs.50,000/- was due against the said account and accordingly the  complainant deposited the said  amount on 22.01.2015 and it was duly acknowledged by the Ops but the complainant claimed  that after due payment the Ops showing balance  of Rs.3,68,345/- as on 22.01.2015 and refused to issue NOC. As per the statement  provide by the Ops to the complainant is shows the loan account of the complainant and the number of delayed payment   made  by the complainant against the dues and over due interest for the delayed payment. The  OP being the financer not taken steps to seize the vehicle to respect the forum as per the interim order passed by the forum on 23.02.2015 . But preferred Revision Petition No.37 of 2015  before the Hon’ble State Commission ,Odisha, Cuttack and the same also disposed by the Commission. On the other hand the complainant stated that the Ops are not transparent in their accounts and the agreement is illegal, invalid and unenforceble under the law as per the guidelines of the RBI. So the OP cannot charge  further over due charges. The OP exploiting the consumer by taking advantages.

      In our view the Ops  have not approached the forum with clean hands. The Ops  are running their money lending business in the scheduled area and they have got their branch office at Rayagada for which they have not obtained any money lender’s license to their money  lending business.

      However, it is clear that Rayagada district is a scheduled district and the OP  are require to obtain a money lending license to run his finance business as per Sec.4 of the Money Lending Act and it is an offence U/s 19  of the Money Lending License . The  Ops are  entitled  to get simple interest of  @ 9% as prescribed in this act. So the complainant is only liable to pay 9% interest per annum. The  O.Ps can not charge over  due for the loan amount.

      Hence, we found deficiency in service on the part of the Opposite Parties and it is opined that as the complainant has already deposited the full amount  as per the demand of the  Opp.Parties  they cannot claim any  farther  amount from the complainant and hence, it is ordered.

                                               ORDER

                        Hence, as per our above findings, the Opposite Parties are  directed not to  claim any amount from the complainant and close the loan account of the complainant and issue no dues certificate in favour of the complainant. There shall be no order as to cost and compensation. Parties to bear their own cost.

                        Pronounced in open forum today on this  7^th of  October ,2016 under the seal and signature of this forum.

                         A copy of this order as per the statutory requirements , be forwarded to the parties    free of charge.

 

 

 

            Member                                                                                              President

 

Documents relied upon:

 

By the complainant:

1. Letter dt.18.02.15 issued by  the  O.P   to the complainant.
2. Loan details, copy of statement of accounts.

By the O.Ps. Nil

1. Copy of Statement of account

 

 

                                                                                                         President