DATE OF FILING : 11.1.2016
IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 13th day of March, 2017
Present :
SRI. S. GOPAKUMAR PRESIDENT
SRI. BENNY. K. MEMBER
CC NO.14/2016
Between
Complainant : Babu Mathew,
Ullattil House,
Thekkumbhagam P.O.,
Thodupuzha, Idukki.
(By Adv: P.S. Rajesh)
And
Opposite Parties : 1. The Manager,
Magma Fincorp Ltd.,
Registered Office at 24, Part Street,
Kolkata 700 016.
2. Magma Fincorp Ltd.,
Branch Office,
Kochi.
Represented by authorised signatory.
(Both by Advs: Philip T. Varghese,
Thomas T. Varghese,
Sunanda Sukumaran,
Denny Varghese)
O R D E R
SRI. BENNY. K., MEMBER
Complainant had availed a loan of Rs.8,55,950/- from the opposite party to purchase a Toyota Innova vehicle with Reg. No.KL-38C-931 (taxi permit). As per the terms of agreement, the complainant agreed to repay the amount by 48 monthly installments of Rs.24,815/- each. Opposite party insisted the complainant to sign on certain printed papers at the time of availing the loan and collected blank signed cheque leaves. The complainant had paid an amount of Rs.9,18,155/- by installments to the opposite party. The only dispute between the complainant and opposite party on the installments amount and its penal interest and the additional charges as handling charges fees. The complainant got a notice dated (cont....2)
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15.12.2015 issued by the 2nd opposite party demanding Rs.3,95,000/-. The opposite party demanded payment of amount of Rs.5,08,741/- with huge interest rate. The complainant had paid an amount of Rs.24,815/- on 31.12.2015 as installments. Thereafter the complainant contacted the 2nd opposite party several times, but he willfully did no accept any amount from the complainant. The installment amount remitted by the complainant is appropriated and accounted to the penal interest without the consent of the complainant. The said acts of opposite parties are unfair trade practice and gross deficiency in service. On 6.1.2016, the opposite party and his man tried to take forceful possession of the vehicle and timely intervention of the complainant and neighbours restrained the opposite party from doing so. The complainant is not liable to pay the overdue charges which amounts to 36% and pay according to illegal demand of the opposite party.
In the written version filed by the opposite parties, they had admitted that complainant had entered into a loan agreement to purchase a Toyota Innova car bearing Reg. No.KL-38-C-931. As per the terms of agreement, the complainant has to repay the loan in 48 monthly installments at the rate of Rs.24,815/-. Each installments has to be paid on or before the 1st day of every month from 1.8.2012. As per the hire purchase agreement executed by the parties, the complainant had to repay an amount of Rs.11,91,120/- in 48 monthly installments at the rate of Rs.24,815/-. The complainant defaulted in payment from the very first installment. The allegation that arise a dispute between complainant and opposite party on the installment amount and its penal interest and additional charges as handling charges fees is false. As per the clause (2)11 of the agreement, complainant is bound to pay additional interest for defaulted payment at the rate of 3% per month, compounded monthly. An amount of Rs.4,72,876/- is outstanding to the opposite party from the complainant as on 13.2.2016. Opposite party contends that there is no deficiency in service from their side and this petition is not maintainable and may be dismissed with cost.
(cont....3)
- 3 -
The point for consideration is whether there is any deficiency in service from the part of opposite parties and if so, for what relief the complainant is entitled to ?
The evidence consists of oral testimony of PW1 and Exts.P1 to P4 marked on the side of complainant.
The POINT :- Complainant was examined as PW1. He had availed a loan of Rs.8,55,950/- from the opposite party to purchase a Toyota Innova vehicle with Reg. No.KL-38-C-931. As per the terms of agreement, the complainant agreed to repay the amount by 48 monthly installments of Rs.24,815/- each. Ext.P2 is repayment schedule. The only dispute between the complainant and opposite party on the installment amount and its penal interest and the additional charges as handling charges fees. The opposite party demanded payment of Rs.5,08,741/- with huge interest rate. Thereafter the complainant contacted the 2nd opposite party several times but he willfully did not accept any amount from the complainant. The installment amount remitted by the complainant is appropriated and accounted to the penal interest withut the consent of the complainant. On 6.1.2016, the opposite party had tried to take forceful possession of the vehicle. The complainant is not at all liable to pay the overdue charges which amount to 36%. In the written version, opposite party had admitted the complainant had entered into a loan agreement to purchase a Toyota Innova car bearing Reg. No.KL-38C-931. As per the terms of agreement, the complainant has to repay the loan in 48 monthly installments at the rate of Rs.24,815/-. Each installment had to be paid on or before the 1st day of every month from 1.8.2012. As per the agreement, complainant had to repay an amount of Rs.11,91,120/- in 48 monthly installments at the rate of Rs.24,815/-. The complainant defaulted the payment from the very first installment. The allegation arises a dispute between complainant and opposite party on the installments amount and its penal interest and additional charges as handling charges fees is false. As per the clause 2(1) of the agreement, complainant is bound to pay
(cont....4)
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additional interest for defaulted payment at the rate of 3% per month compounded monthly. An amount of Rs.4,72,876/- is outstanding to the opposite party from complainant as on 13.2.2016. But we think that the opposite party has not produced any authentic document from the RBI or Government to show that they can charge 3% compound interest per month for the delayed and defaulted installments. Hence opposite party is not entitled to charge such huge and exorbitant charge per annum for the delayed installments which is illegal and unjust.
In the result, the petition partially allowed. Opposite party is directed to settle the loan account of the complainant by charging only 12% interest per annum for the defaulted installments for the defaulted period and return all the documents along with NOC to the complainant within 30 days of receipt of a copy of this order.
Pronounced in the Open Forum on this the 13th day of March, 2017
Sd/-
SRI. BENNY K., MEMBER Sd/- SRI. S. GOPAKUMAR, PRESIDENT
APPENDIX
Depositions :
On the side of the Complainant :
PW1 - Babu Mathew.
On the side of the Opposite Party :
Nil.
Exhibits :
On the side of the Complainant :
Ext.P1 - Preclosure termination report.
Ext.P2 - Repayment schedule.
Ext.P3 - Receipt dated 31.12.2015 issued by opposite party.
Ext.P4 - Original Receipts dated 31.12.2015 and 27.1.2016.
On the side of the Opposite Party :
Nil.
/ Forwarded by Order /
SENIOR SUPERINTENDENT
