Karnataka

Chitradurga

CC/75/2017

Anwar S/oHussain Peer - Complainant(s)

Versus

The Manager, Shriram Transport Finance Company Limited, - Opp.Party(s)

Sri.E.Thippeswamy

24 Feb 2018

ORDER

COMPLAINT FILED ON:16.02.2017

DISPOSED      ON:24.02.2018

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

 

CC.NO: 75/2017

 

DATED:  24^th FEBRUARY 2018

PRESENT: - SRI. T.N. SREENIVASAIAH  :  PRESIDENT                                  B.A., LL.B.,

                   SRI.N. THIPPESWAMY        : MEMBER

                                 B.A., LL.B.,   

……COMPLAINANT	Anwar S/o Hussain Peer, Owner of Appe Auto bearing Regn. No.KA-67-C-1120, R/o Sultanpura Isamudra, Chitradurga Taluk.      (Rep by Sri. E. Thippeswamy, Advocate)
V/S
…..OPPOSITE PARTY	The Manager, Shriram Transport Finance Co. Ltd., Vanigothra Complex, B.D. Road, Chitradurga.   (Rep by Sri.Ananthakumar S. Habib, Advocate)

ORDER

SRI. T.N.SREENIVASAIAH : PRESIDENT     

The above complaint has been filed by the complainant u/Sec.12 of the C.P Act, 1986 for the relief to direct the OP to issue loan clearance letter and H.P cancellation letter vide agreement No.CHITD0406180006 and to pay a sum of Rs.75,000/- towards damages for physical and mental agony and Rs.1,00,000/- towards deficiency in service and such other reliefs.

2.     The brief facts of the case of the above complainant are that, he is the RC owner of Ape Auto bearing Registration No.KA-16 C-1120.  The OP is a financier having its registered office at Chennai and also several branches throughout India and one of its branch office is at Chitradurga.  The complainant has availed loan of Rs.1,50,983/- in the month of June 2014 which starts from 19.06.2014 and the installment begin from 20.07.2014 for the purpose of above said vehicle in 36 equated monthly installments as per the hire purchase agreement along with interest at Rs.2,16,314/-.  Accordingly, the complainant has paid the entire loan amount with interest to the OP.  The last loan installment date is 20.06.2017 and the complainant has paid in all a sum of Rs.2,19,610/- to the OP on 20.06.2017 and the same has been adjusted to the loan account on 21.06.2017.  The complainant has paid the entire amount to the OP and the complainant asked the OP to give clearance certificate and hypothecation letter but, the OP refused to give the same.  The complainant requested the OP to give the same but, the OP with an intention to make unlawful gain direct the complainant to pay a sum of Rs.50,000/- towards clearance charges and HP cancellation charges.  The OP after receiving the entire amount, failed to issue the loan cancellation letter and HP cancellation to the complainant which tentamounts to negligence and deficiency in service towards the complainant.  The OP company insisted the complainant to pay Rs.50,000/- which is excessive and abnormal and the same has no basis at all.  The OP always intending to harass the complainant.  Thereafter, the complainant issued legal notice to the OP seeking issue of clearance and HP cancellation letters but, the OP neglected to give the same and drag on the matter by one or the other pretext which is a deficiency in service on the part of OP and hence, prayed for allow the complaint.

3.     After service of notice to the OP, OP appeared through counsel Sri. Ananthkumar S. Habeeb and filed version.  According to the OP, the allegations made in para 2 to 16 of the complaint are all false and specifically denied as false and the complainant is put to strict proof of the same.  The complainant has purchased the said vehicle for commercial use.  The complainant has borrowed a loan from the OP to purchase 2014 model Ape Auto bearing Regn.No.KA-16 C-1120 under the guarantor ship of one Mr. Rasheed by executing joint loan cum hypothecation agreement in favour of OP.  Therefore, the complainant is not a consumer within the meaning of Section 2(1)(d) of C.P Act.  The complaint filed by the complainant is not maintainable either in law or on facts and the same is liable to be dismissed in limine.  The loan availed by the complainant is a commercial vehicle loan.  Therefore, commercial user of the vehicle is not a consumer.  The complainant and guarantor have jointly executed a loan cum hypothecation agreement in favour of the OP.  Under the said loan agreement, the total amount repayable was Rs.2,16,208/-.  The complainant became defaulter and he has not paid the monthly installments regularly as per loan repayment schedule III of the agreement.  All the terms and conditions are embodied in the agreement executed by the complainant in favour of OP and the same are binding on him.  Under the agreement, the loan availed by the complainant and financial charges agreed to be paid thereon is of   Rs.2,16,208/-.  The dues payable by the complainant including ODC is mounting day by day.  As per statement of vehicle loan amount, the total dues payable by the complainant to the OP financial institution is of Rs.33,980-61 as on 04.09.2017.  Until and unless, the entire dues are paid, the complainant is not entitled for HP cancellation or loan clearance certificate.  Moreover, it is made clear that, dispute relates to accounts between the parties must be relegated before the Civil Court and this Forum has no jurisdiction to adjudicate the present dispute relating to statement of account.  The OP has not committed any deficiency of service within the meaning of Section 2(1)(d) of the C.P Act and hence, prayed for dismissal of the complaint.

4.     Complainant has examined as PW-1 by filing affidavit evidence and relied on the documents like Ex.A-1 to A-3 and closed his side.  OP has examined one Sri. Hanumanthappa. G.R, the Project Executive, Davanagere as DW-1 and relied on Ex.B-1 to B-3 documents and closed their side.    

5.     Arguments heard. 

6.     Now the points that arise for our consideration for decision of above complaint are that;

(1)  Whether the complainant proves that the OP has committed deficiency in service for non-issuing of clearance and HP cancellation letter and entitled for the relief as prayed for in the complaint?

(2) What order?

 

7.     Our findings on the above points are as follows:-

                Point No.1:- Partly in affirmative.

                Point No.2:- As per final order.

 

REASONS

8.     Point No.1:- It is not in dispute that, the complainant is the RC owner of Ape Auto bearing Registration No.KA-16 C-1120 and the same has been purchased by the complainant by obtaining the loan of Rs.1,50,983/- from the OP agreeing to repay the same in 36 equated monthly installments to the OP.   The first installment was commenced on 20.07.2014.  As per agreement, the complainant has paid Rs.2,16,314/-.  The loan period was for three years.  As per the arguments addressed by the complainant and the documents produced by him shows that, they have paid the entire loan amount within three years from the date of obtaining the loan.  The arguments addressed by the OP that, the complainant has purchased the vehicle for commercial purpose and this Forum has no jurisdiction to try this case and the complainant is still due for an amount of Rs.33,980-61 as on 04.09.2017 and further argued that the complainant has not paid the installments regularly to the OP company.  The OP has not committed any deficiency in service.  If the complainant has paid the remaining amount of Rs.33,980/-, the OP is always ready to give clearance and HP cancellatio letter.

9.     We have gone through the entire pleadings, documents and affidavits filed by the complainant and OP.  As per the exhibits produced by the complainant, the complainant has paid the entire amount within three years from the date of obtaining the loan and also the documents produced by the OP clearly shows that, the complainant has paid the entire amount within three years from the date of obtaining the loan.  Therefore, we come to the conclusion that, the complainant has not committed any default in making payment of loan installment.  The documents produced by the OP itself shows that, the complainant has cleared the entire loan amount within time which was granted by the OP and hence, the OP has committed deficiency of service in issuing clearance and HP cancellation letter to the complainant.  Accordingly, this Point No.1 is held as partly affirmative to the complainant.

 

 

          10.     Point No.2:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

          The complaint filed by the complainant U/s 12 of C.P Act 1986 is partly allowed.

          It is ordered that, the OP is hereby directed to issue clearance certificate and HP cancellation letter to the complainant within 30 days from the date of this order.

          It is further ordered that, the OP is hereby directed to pay Rs.10,000/- towards mental agony and Rs.5,000/- towards cost of the proceedings to the complainant.

          It is further ordered that, the OP is hereby directed to comply the above order within 30 days from the date of this order.

            (This order is made with the consent of Member after the correction of the draft on 24/02/2018 and it is pronounced in the open Court after our signatures)

           

                                     

 MEMBER                                                   PRESIDENT

-:ANNEXURES:-

Witnesses examined on behalf of Complainant:

PW-1:  Complainant by way of affidavit evidence.

Witnesses examined on behalf of OP:

DW-1:- Sri. Hanumanthappa G.R by way of affidavit evidence.

Documents marked on behalf of Complainant:

01	Ex-A-1:-	RC
02	Ex.A-2:-	Certificate cum Policy Schedule
03	Ex.A-3:-	4 Photos

 

Documents marked on behalf of OP:

01	Ex-B-1:-	Loan cum Hypothecation agreement
02	Ex.B-2:-	Statement of account
03	Ex.B-3:-	Power of Attorney

 

 

MEMBER                                                            PRESIDENT

Rhr**