DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, PALAKKAD<br /> <br /> Dated this the 28th day of November 2008.<br /> <br /> Present : Smt. H. Seena, President<br /> : Smt. Preetha.G. Nair (Member)<br /> : Smt.A.K. Bhanumathi (Member) <br /> C.C.No.16/2007<br /> <br /> Abhilash Verma<br /> S/o. V.R. Gopinathan<br /> Akashy House<br /> K.K. Edom<br /> Akathethara<br /> Palakkad. - Complainant<br /> (Advocate Tony Jose.K.)<br /> V/s<br /> <br /> The Manager<br /> Bajaj Auto Finance Ltd <br /> 14/1280, N.S. Tower<br /> Room No.10, 2nd Floor<br /> Near Stadium Bus Stand<br /> Kunnathurmedu (Post)<br /> Palakkad. - Opposite party <br /> (Advocate N. Anoopkumar)<br /> O R D E R<br /> By Smt. Seena.H., President.<br /> <br /> The case of the complainant in brief is as follows.<br /> The complainant by virtue of an agreement with the opposite obtained a loan for Rs.29,000/- for the purpose of purchasing a Motor cycle. The amount was repayable on 36 installments of Rs.1,019/- each. Complainant submitted 36 post dated cheques for Rs.1019/-. The complainant repaid the entire loan amount through Bank as and when the post dated cheques are presented in the bank. There after when the complainant approached the Opposite party to obtain 'No Objection Certificate', the Opposite party turned down his request saying that the 15th cheque bearing No.65885 dated 05/09/2004 issued towards the payment of the 15th installment was found missing and that they could not present the cheque for collection and that the complainant is liable to pay the above said installment amount of Rs.1,019/- along with a penalty of Rs.2,550/-. The petitioner accordingly remitted the installment amount but not the penalty as the default was not on <br /> - 2 -<br /> the part of the petitioner in missing the cheque which is a post dated one entrusted with the opposite party.<br /> <br /> In the meanwhile the said motor cycle met with an accident and sustained damages. The complainant lodged a claim with the National Insurance Company, Palakkad. Company allowed the claim in part i.e, Rs.2,050/- only and forwarded the amount to the Opposite party's office since they were the financiers. Instead of paying the money back to the petitioner, the opposite party retained the amount with them and adjusted the amount to the penalty amount of Rs.2,550/-. According to the complainant, the opposite party does not have any right to retain the amount or adjust it towards the penalty amount. Even after clearing all the outstanding amount and repeated requests by complainant, the opposite party has not issued the No objection certificate. Finally the complainant issued a lawyer notice dated 13/01/2007. Opposite party received the notice but has not cared to reply for the same. Finally after the filing of the compliant opposite party sent a reply notice dated 06/02/2007 enclosing a cheque drawn for Rs.2,050/- and no objection certificate. Hence the complainant give up all the prayers made in the complaint except 12% interest for the amount withheld and compensation for deficiency of service.<br /> <br /> Notice was served on the Opposite party. Opposite party filed version with the following contentions.<br /> <br /> Opposite party admits that Opposite party is the owner and the complainant was the hirer of the vehicle Baja Boxer K.TECH Motor cycle under a valid hire purchase agreement and the said agreement has been terminated on 05/06/2006. The Opposite party denies the statement that the complainant has paid 36 post dated cheques towards repayment of the loan. According to the opposite party, the complainant was supposed to give the Opposite party 36 post dated cheques of Rs.1,019/- each. But when submitted the above cheques, he omitted to give the Opposite party the cheque of the 15th installment which the opposite party has noticed only when the same was due. Complainant was asked to clear off the above installment several times which the petitioner has never bothered to do. Only in such circumstance, the complainant was made liable to pay default amount of Rs.2,550/- which <br /> - 3 -<br /> the complainant agreed as per the agreement between them. According to Opposite party, in such circumstance, the opposite party is entitled to retain and deduct any amount payable to the petitioner towards payment of the above charge. As per the agreement between the complainant and the opposite party, the opposite party company is liable to issue no objection certificate only when all the dues are cleared and hence there is no deficiency of service on the part of the opposite party.<br /> <br /> Opposite party further contends that the no objection certificate along with a demand draft for an amount of Rs.2,050/- has been forwarded to the complainant along with the reply notice. All the demands were accepted by the Opposite party immediately by way reply and hence there is no deficiency of service on their part.<br /> <br /> Proof affidavit and Exhibit A1 to A4 were marked on the side of the complainant. Opposite party has not tendered any evidence.<br /> <br /> Issues for consideration are:<br /> 1.Whether there is any deficiency of service on the part of the opposite party.<br /> 2.Is so, what is the relief and cost?<br /> Matter was heard.<br /> Points 1 & 2<br /> According to the complainant, he has paid 36 post dated cheques towards repayment of the loan. But the contention of the opposite party is that the complainant was supposed to give 36 post dated cheques. But when submitted he omitted to give the cheque for the 15th installment which the opposite party has noticed only when the above installment was due.<br /> <br /> The contention of the Opposite party cannot be accepted. Opposite party ought to have verified the cheques at the time of presentation itself. Non verification amounts to negligence on their part for which complainant cannot be made liable. Further as evident from Exhibit A2 dated 05/06/2003, it is obvious that petitioner has issued a post dated cheque dated 05/09/2004 bearing No.65885 for the 15th installment. Hence the contention <br /> - 4 -<br /> of the Opposite party that the complainant has omitted to submit the cheque is of no significance. It is evident from Exhibit A1 that the Complainant was made to pay the 15th installment by cash. Inspite of paying the whole installment, opposite party has not issued the no objection certificate stating penalty amount is due. This act of the opposite party clearly amounts to deficiency of service.<br /> <br /> It can be seen from records that Opposite party has issued the no objection certificate along with demand draft for Rs.2,050/- after the intimation of the complaint.<br /> Hence we allow the complaint partly.<br /> Opposite party is directed to pay an amount of Rs.2,500/- as compensation and Rs.500/- as cost of the proceedings within 3 weeks from the date of communication of the order failing which the whole amount shall carry interest at the rate of 9% per annum from the date of order till realization. <br /> Pronounced in the open court on this the 28th day of November 2008.<br /> <br /> President (SD)<br /> Member (SD)<br /> Member (SD) <br /> Exhibits marked on the side Complainant<br /> A1 - Receipt of payment of 15th installment dated 17/08/06.<br /> A2 - Statement of accounts issued by Opposite party dated 05/06/2003.<br /> A3 series – Copy of Lawyer notice along with postal receipt and acknowledgment<br /> A4 series – Reply notice and postal cover<br /> Exhibits marked on the side Opposite party<br /> Nil<br /> Costs<br /> Partly allowed.<br /> Forwarded/By order<br /> <br /> Senior Superintendent