IN THE CONSUMER DISPUTES REDRESSAL FORUM, ALAPPUZHA

Thursday the 30^th day of September, 2010

Filed on 14.08.09

Present

1. Sri. Jimmy Korah (President)
2. Sri. K. Anirudhan (Member)
3. Smt. Shajitha Beevi (Member)

in

C.C.No.273/09

between

Complainant:-                                                        Opposite Parties:-

Sri.M.M.Paulose,                                       1.         The Manager, Sundaram Finance Ltd.,

Mannareth Veedu,                                                  Anilbhavan, Y.M.C.A, Jetty Road,        

Aanaprambal North.P.O.,                                       Mullackal, Alappuzha.             

Thalavady.                                                              (By Adv.G.Priyadarsan Thampi)

2.                  M/s.Sundaram Finance Ltd.,

21, Patullas Road, Chennai-600 002.

O R D E R

SRI.JIMMY KORAH (PRESIDENT)

The complainants’ case in a nutshell is as follows: - The complainant, on 2^nd September 2006 availed a loan amount of Rs.1,50,000/-(Rupees one lac fifty thousand only) from the 1^st opposite party. On the same day itself, the representative of the 1^st opposite party procured an amount of Rs.5,230/-(Rupees five thousand two hundred and thirty only) as 1^st installment of the loan repayment from the complainant. The opposite party charged Rs.500/-(Rupees five hundred only) for the agreement form, and caused the complainant affix his signature in the blank agreement form. The complainant was assured that the receipt of the 1^st installment amount and the copy of the said agreement would be served to the complainant within one week after obtaining the signature of the 2^nd opposite party in Chennai.  The complainant entrusted 19 cheques each for an amount of Rs.5,230/- (Rupees five thousand two hundred and thirty only) with the representative of the 1^st opposite party. The opposite parties duly procured the entire loan amount by presenting the said cheques. The opposite parties so far have not given the copy of the agreement or the receipt to the complainant as assured by them. The opposite parties availed from the complainant excess interest as against their offer. The opposite parties unlawfully wangled the 1^st installment amount beforehand prior to the issuance of the loan amount. The opposite parties, with a view to make illegal enrichment were reluctant to allow the complainant to foreclose the loan amount despite the complainant's eagerness for the same. The opposite parties committed unfair trade practice. The complainant was afflicted with cardiac ailment in the meantime. Got aggrieved on this the complainant approached this Forum for compensation and relief.

1. On notice being sent, the opposite parties turned up, and filed version. The contention of the opposite parties is that the complainant had affixed his signature on the filled up 'agreement', and not on a blank one. According to them, the complainant was tendered a temporary receipt for the 1^st installment amount. The complainant failed to pay off the loan amount promptly in time. The copy of the agreement and the receipt of the 1^st installment arrived at the 1^st opposite party office duly, but the complainant did not make it a point to avail the same from the opposite party, the opposite parties allege. The complainant never demanded anything other than the statement of transaction. The opposite parties have not availed any surplus interest from the complainant. The opposite parties submit that they haven't received any complaint or additional cheque from the complainant as claimed by him. The complainant, notwithstanding the opposite parties repeated requests was not eager to pay off the loan amount in time. The complaint is without any basis. The same is only to be dismissed with cost to the opposite parties, the opposite parties contend.

2. The evidence of the complainant consists of the testimony of the complainant himself as PW1, and the documents Exbts. Al to A7 were marked. On the side of the opposite parties, the branch manager of the same was examined as RW1, and the documents Exbts. B1 to B3 were marked.

3. Taking into account the contentions of the parties, the questions that come up for consideration are:-

(1) Whether the opposite parties committed unfair trade practice?

(2) Whether the complainant is entitled to any relief?

4. The crux of the complainant’s case is that the complainant availed a loan amount of Rs.1,50,000/-(Rupees one lac fifty thousand only) from the opposite parties. The opposite parties procured in advance the 1^st installment of the repayments from the complainant. The opposite party, despite complainant's repeated requests was absolutely disinclined to issue the copy of the agreement and the receipt of the said 1^st installment to the complainant. That apart, the opposite parties did not allow the complainant to pay off the loan ahead of prescribed time, notwithstanding the complainant's preparedness for the same. Bearing alive in mind the complainant’s case, we carefully went through the materials put on record by the parties. We perused the pleadings, evidence and all materials brought on record. Concededly, the opposite parties procured the 1^st repayment installment prior to the issuance of the loan amount to the complainant. The complainant forcefully argues that the opposite parties have no right to keep with them the amount of Rs.5,230/-(Rupees five thousand two hundred thirty only) in advance for the yet-to-be-issued loan amount. Further Exbts. Al to A4 obviously reveal that the complainant approached the opposite party for the purpose of foreclosure of the loan amount, and the said documents totally falsify the opposite parties entire contention. It appears that the opposite parties were least prepared to allow the complainant to close out his loan account. As to the opposite parties' availing of the repayment installment ahead of issuance of loan amount, it goes without saying that the same is unlawful and unwarranted. In this context, we are of the view that the opposite parties have committed deficiency of service, and are also liable for unfair trade practices. Needless to say, the complainant is entitled to relief.

In the result, the opposite parties are directed to close the loan account of the complainant on availing an amount of Rs.1,847/- (Rupees one thousand eight hundred and forty seven only) from the complainant. The opposite parties are further directed to give back the complainant all documents in respect of the said loan. The opposite parties are again directed to pay an amount of Rs.10,000/-(Rupees ten thousand only) as compensation and an amount of Rs.1,000/-(Rupees one thousand only) as cost of the proceedings to the complainant.

Complaint stands disposed accordingly.

Pronounced in open Forum on this the 30^th day of September, 2010.

                                                                                                Sd/-Sri. Jimmy Korah

Sd/-Sri. K. Anirudhan

Sd/-Smt. N. Shajitha Beevi 

Appendix:-

Evidence of the complainant:- 

PW1                -           M.M.Paulose(Witness)

Ext. A1            -           The copy of the Letter issued to the 1^st opposite party dated, 29.06.2009

Ext. A2            -           The copy of the DD dated, 10.07.2009 for an amount of Rs.1,847 and

Acknowledgment

Ext. A3            -           The copy of the Letter issued to the 1^st opposite party dated, 23.05.2009,

postal order and acknowledgment

Ext. A4            -           The copy of the Letter issued to the 1^st opposite party dated, 24.07.2008,

postal order and acknowledgment

Ext. A5            -           The copy of the Discharge Summary

Ext. A6            -           The copy of the Authorization for Additional Services

Ext. A7 series   -           Customer Profile (Sundaram Finance)

Evidence of the opposite parties:-

RW1                -           Sreekrishnan.K (Witness)

Ext. B1 -           The copy of the Loan Agreement

Ext. B2 -           The copy of the Certificate and statement of Transactions dated, 17.11.2009

Ext. B3 -           The DD  No.“198994”dated, 10.07.2009 for an amount of Rs.1,847/-

// True Copy //

                                                                                 By Order

                                                                                   Senior Superintendent

To

            Complainant/Opposite Parties/S.F.

Typed by:- k.x/-       

Compared by:-