D o F: 22.04.2010
D o O: 31.12.2010
IN THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM,KASARAGOD.
C.C. No.99/ 2010
Dated this, the 31st day of December 2010
Present:
PRESIDENT : Shri K.T.SIDHIQ
MEMBER : Smt. P.RAMADEVI
Nassir Thayal Mohammed
S/o Thayal Mohammed, : Complainant
M/s Majestic Agencies,
Firdous Bazar, Sa- Adiya Complex,Kasaragod.
(Adv.Manikandan Nambiar.K,Kasaragod)
The Manager,
TML Finance Services , Tata Motors Ltd, : Opposite party
South Bazar,Kannur.
(Adv.M.Preman,Kannur)
ORDER
Shri. K.T.SIDHIQ: PRESIDENT
The case of the complainant shorn of all other averments and allegations is that the opposite party committed deficiency in their service without issuing him the necessary documents and RC of his vehicle bearing Reg.No.kL-14/1889 even after paying the stipulated amount as per the agreement entered with opposite party.
According to opposite party complainant is further liable to pay ` 27965/- including insurance amount ie ` 13000/-.
Complainant filed proof affidavit in support of his case. Exts.a1 to A7 marked. On the side of opposite party Exts.B1 & B2 marked. Both sides heard. Documents perused.
During enquiry complainant submitted that he is ready to pay ` 15000/- including the insurance amount to settle the claim.
Ext.B1 is the statement of account with respect to the loan advanced to complainant. On perusal of Ext.B1 it is seen that the claim of the opposite party is not sustainable as they failed to follow the law of appropriation of interest while calculating the interest. Certainly it amounts to deficiency in service and therefore complainant is not liable to pay the overdue charges which is calculated as `12928.26.
As per law of appropriation of interest where the law allows interest on interest a payment should be applied first to discharge overdue interest on interest second to discharge interest and third to discharge principal.
But in this case it is seen that the opposite party at no occasion collected the overdue interest first and then interest and principal. Had the opposite party collected overdue interest whenever complainant remitted the EMI’s on belated dates, then the complainant would have been more vigilant in making the EMI payments promptly in time.
The non appropriation of overdue interest in time amounts to waiver of such interest and therefore claiming the overdue interest at the time of closing the loan warrants interference which we hereby do.
Therefore we hold that complainant is not liable to pay any overdue interest and therefore he is only liable to pay ` 27965-12928= ` 15037/- only including the insurance premium.
Hence the complaint is partly allowed and complainant is directed to pay `15000/-(rounded figure) to the opposite party within one month from the date of receipt of copy of order which will carry interest @ 12% in default of payment within one month. Opposite party shall return all the documents RC, Spare key etc obtained from the complainant at the time of entering in the loan agreement within 15 days from the date of receipt of the amount. Opposite party shall also issue No objection certificate as envisaged under the MV Act to cancel the HP endorsement from the RC of KL-14 1889. Complainant will be entitled for a compensation of ` 5000/- If opposite party delays the return of document and spare key. Further on request of the complainant necessary direction will be issued to the concerned registering authority to issue duplicate RC after canceling the endorsement favouring opposite party from RC of the vehicle bearing No. KL 14 1889.
Exts:
A1- Temporary repayment schedule
A2-to A5 receipts issued by OP
A6-22/1/2010- Copy of lawyer notice
A7- A.D.card
B1- Contract Details
B2-12/5/2010-normal termination details
Sd/ Sd/
MEMBER PRESIDENT
eva /Forwarded by Order/
SENIOR SUPERINTENDENT
