DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, PALAKKAD Dated this the 25th day of September 2009.
Present : Smt. H. Seena, President Smt. Preetha.G. Nair, Member Smt Banumathi.A.K, Member C.C.No.67/2008
K.S. Hemjith S/o. Sethumadhavan Jyothi Nivas Maniyeri Vengodi (P.O) Elappully Palakkad – - Complainant (Adv.Akabar Ali ) V/s
The Manager ICICI Bank Palakkad Branch West Fort Road Palakkad. (Adv.M.Ramesh & Adv K. Jyothi Basu) - Opposite party
O R D E R Order by Smt. A.K. Bhanumathi, Member The case of the complainant in brief is as follows.
The complainant availed a loan from ICICI Bank, Palakkad Branch for purchasing a motor cycle. He applied for the loan on 20/12/2006 and also make an advance payment of Rs.16,800/- for purchase of a Victor GLX Motor bike and the opposite party sanctioned a loan of Rs.33,010/- and signed a loan agreement to the opposite party and the loan number was LTPGT 00008935888 and later the number has been changed into LTPGT 00009267516 on 1st February 2007 and was informed the opposite party.
As per the sanctioned loan the complainant purchased the vehicle KL-09U6301 and registered in his name and use it for his personal purposes. As per the loan agreement complainant should pay 36 instalments at the rate of Rs.1,210/- from 05/02/2007 to 06/02/2010. At the time of signing the agreement and availing the amount the complainant handed over 36 cheque leaves of Indus Land Bank and also handed over signed white papers as per the direction of the opposite party.
Towards the loan amount the complainant paid 12 instalments . The last payment was on 30/03/2008. Totally the complainant has paid Rs.14,570/-. Due to some financial difficulties some monthly instalments were defaulted but he paid it with defaulting charges
On 23/04/2008 the complainant parked the above vehicle outside Para Temple, nearby his house and attending a marriage function inside the temple. After attending the function when he returned he found that the motor bike was missing. On enquiry the he knew that the vehicle was taken by the opposite party by using Goondas. Immediately he filed complaint before the Kasaba Police Station and the police confirmed that the vehicle was captured by the opposite party. The opposite party informed the police that they have repossessed the vehicle for non payment of the dues. The opposite party did not send any notice to the complainant showing such activities. The act of the opposite party amounts to harrassement and caused mental agony and damages. So the complainant approached this forum for seeking an order to direct the opposite party to pay the cost of the vehicle Rs.47,800/- or return the vehicle and Rs.50,000/- as compensation.
The complaint was admitted and opposite party filed version dening all the avernments submitted by the complainant. According to the opposite party the complainant was a permanent defaulter in payment of loan amount. The complainant has executed the loan agreement by which he is bound to pay the instalments regularly and in the case of default the opposite party has the right to take posession of the vehicle and to sell the same.
The opposite party issued a notice on 07/03/2008 requesting the complainant to repay the amount on or before 25/03/2008. The complainant failed to repay the amount and the opposite party directly approached the complainant. The complainant has expressed his inability to pay the loan amount and surrendered the vehicle on 23/04/2008 and promised to return the Registration certificate and other related documents within the next two - 3 - days. The complainant failed to return the documents as promised. On 29/04/2008 presale notice was issued by the opposite party to the complainant intimating that the hypothecation agreement was terminated and calling upon the complainant to return the entire documents related to the vehicle. The letter specifically informed that after the sale of the vehicle the Bank did not recover the entire loan amount the complainant is liable to pay the balance amount. The complainant is trying to escape from the liability of paying the balance loan amount . Therefore it is prayed that the honourable forum may dismiss the complaint with compensatory cost.
Both parties filed affidavit. Exhibit A1 to A8 were marked on the side of the complainant. Exhibit A8 is marked with objection. Exhibit B1 to B6 were marked on the side of the opposite party.
Matter was heard.
The issues to be considered are: Whether there is any deficiency of service on the part of opposite party? If so, what is the relief and cost?
The brief case of the complainant is that he availed a loan from the opposite party for purchasing a motor bike and executed a loan agreement by which the complainant should pay 36 EMI at the rate of Rs.1,210/- from 05/02/2007 till 07/07/2010. The complainant has paid Rs.14,570/- comprising 12 instalments and the last payment was on 30/03/2008. Due to some financial difficulties some monthly instalments were defaulted but he paid it with defaulting charges. On 23/04/2008 the complainant parked the said vehicle outside Para Temple near his house and when he returned found that the Motor Bike was missing.
On enquiry the complainant came to know that the vehicle was seized by the opposite parties using Goondas. The complainant filed a complaint before the Kasaba Police Station and the Police confirmed that the vehicle was captured by the opposite party. The act of opposite party caused mental agony to the complainant. - 4 - We perused the relevant documents. It is the admitted fact that the complainant availed a loan from the opposite party for purchasing a Motor Bike and has executed a loan agreement. Exhibits A3 and A5 series documents show that the complainant paid Rs.14,570/- comprising 12 instalments and last payment was on 31/03/2008. According to opposite party the complainant was a permanent defaulter. The main contention of the complainant is that on 23/04/2008 his vehicle was captured by the opposite party Bank by using Goondas. Eventhough there are some dues by the complainant the seizure of the vehicle by force is legally not permissible. In a Revision Petition (CITI CORPS MARUTI FINANCE LTD V/s VIJAYALAKSHMI No.737/2005), the Hon'ble National Commission states that, "we are governed by the rule of law in the country. The recovery of loans or seizure of vehicles could be done only through legal means. The bank cannot employ goondas to take possession by force". The opposite party argues that the complainant himself surrendered the vehicle to the opposite party. But no document is produced by the opposite party to prove their contention. The pre sale notice dated 29/04/2008 itself shows that the vehicle has been possessed by the opposite party. The complainant produced photo copies of telegrams stating that the vehicle bearing Registeration No.KL 9 U-6301 has been repossessed by ICICI Bank. The complainant says that his vehicle costs Rs.47,800/-. Any how it is admitted by the opposite party that the vehicle is in their custody. We are not aware about the position of the vehicle whether it is sold or not. No document is produced by the opposite party to prove that aspects. On 29/04/2008 a pre sale notice was issued by the opposite party. If the vehicle was sold by that time the cost of the vehicle will not reduced much. The act of opposite party in repossessing the vehicle using muscle power is clearly deficiency in service
In the result complaint is partly allowed. The opposite party is directed to pay an amount of Rs.10,000/- as compensation and Rs.1,000/- as cost. The complainant is directed to return the RC Book to the opposite party on payment of the ordered amount. Order shall be complied within one month from the date of receipt of order failing which the whole amount shall carry interest @ 9% p.a from the date of order till realization.
Pronounced in the open court on the 25th day of September 2009 - 5 - PRESIDENT (SD) MEMBER (SD) MEMBER (SD)
APPENDIX
Witness examined on the side of Complainant Nil Witness examined on the side of Opposite party Nil Exhibits marked on the side of the complainant Ext. A1 – Intimation letter dated 01.02.2007 change in Loan Agreement No.LTPGT 00008935888 to LTPGT 00009267516
2. Ext.A2 - Amortization Schedule 3. Ext A3 - Account statement from 05/02/2007 to 05/01/2010 dated 18/12/2007 4. Ext. A4 – Repayment schedule dated 29/01/2007 5. Ext. A5 series – Payment receipt dated 26/03/07,30/04/07, etc 6. Ext. A6 – Registered lawyer notice
Exhibits marked on the side of the Opposite Party Ext. B1 – Letter of ICICI Bank addressed to Hemjith dated 07/03/2008
2. Ext. B2 – Courier receipt of Franch Express dated 14/03/2008 3. Ext. B3 - Letter of ICICI Bank addressed to Hemjith dated 29/04/2008 4. Ext. B4 – Registered Acknowledgement receipt 5. Ext. B5 – Acknowledgement card
Forums Exhibits Nil Cost (allowed) Rs.1,000/- (Rupees One thousand only) allowed as cost of proceedings Forwarded/By Order
Senior Superintendent
......................Smt.Bhanumathi.A.K
......................Smt.Preetha.G.Nair
......................Smt.Seena.H | | 
