DATE OF FILING : 15.12.2010
BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 28th day of February, 2011
Present:
SRI.LAIJU RAMAKRISHNAN PRESIDENT
SMT.SHEELA JACOB MEMBER
SMT.BINDU SOMAN MEMBER
C.C No.274/2010
Between
Complainant : T.N. Sasi,
Maliyeckal House,
Kanjiramattom P.O.
Now residing at
Thattaruparambil House,
Udumpannoor P.O.,
Thodupuzha,Idukki District.
(By Adv: K.M. Sanu)
And
Opposite Parties : 1. The Manager,
Shriram City Union Finance Ltd.,
Geetha Cemmercial Complex,
Near Axis Bank, Nagampadam,
Kottayam District.
2. The Manager,
Shriram City Union Finance Ltd.,
Branch Office, Kattappana,
Kattappana, P.O.,
Idukki District.
(Both by Adv:Sreenivas V. Pai)
O R D E R
SRI. LAIJU RAMAKRISHNAN (PRESIDENT)
The complainant purchased a Kinetic Nova scooter from Maria Motors, Kanjirappally, in the month of February 2007 and the cost of the vehicle was Rs.44,900/-. The complainant paid Rs.17,000/- at the time of purchase and the balance amount was arranged as loan from the opposite party finance company. The repayment of the loan was with 36 monthly instalments of Rs.1,236/- each. The opposite party received 37 number of cheque leaves and the original records of the vehicle, at the time of availing the loan. The complainant paid Rs.15,110/- in 12 instalments. In the month of February 2008, his daughter's husband who was working in Bhopal was expired in a road accident. So the complainant was constrained to stay at Bhopal for the help of his daughter. After that the complainant was not able to repay the loan and its dues through the income from tapping. When it was informed to the opposite party, the opposite party told that the loan will be closed if the vehicle surrenders with them. So the complainant surrendered the vehicle on18.6.2009 to the opposite parties and they assured that the loan account will be closed. At the time of surrender of the vehicle, the vehicle was used only for one year and it fetch a market value of Rs.35,000/-. The balance amount for the loan was Rs.29,386/- only. But the opposite parties have initiated recovery proceedings against the complainant for Rs.29,163/- which the complainant
is not entitled to repay. The complainant surrendered the vehicle as per the assurance given by the opposite party that the loan account will be closed. So the petition is filed for directing the opposite party to close the loan account of the complainant for the vehicle.
(cont....2)
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2. As per the written version filed by the opposite party, the opposite party is a non-banking finance company registered under the Indian Companies Act, 1956 and the opposite party is working under the registration and guidelines of RBI. The petitioner executed a loan-cum-hypothecation agreement with the first opposite party on 21.2.2007 for the purchase of the vehicle and the opposite party had advanced an amount of Rs.31,400/- and the petitioner purchased a Kinetic Nova scooter. The petitioner further agreed to repay the principal amount, interest and other charges at the rate of Rs.1,236/- per month in 36 EMIs starting from 7.4.2007 to 7.3.2010. It is true that the petitioner issued 36 post dated cheques for the monthly instalments, but due to non-availability of sufficient funds in the bank account, the cheques were dishonoured and the petitioner has not taken any steps to regularize the loan account. The petitioner is well aware that as per the agreement, he is supposed to pay the cheque bounce charges and overdue charges for the dishonour of every cheque and delay in payments till the realization of payments. The petitioner never resided at Bhopal as alleged. The petitioner surrendered the vehicle to the opposite parties on 18.6.2009 and requested to sell the vehicle and credit the sale proceeds in the loan account. He also agreed to pay the balance deficit amount, if any, after adjusting the sale amount. Accordingly, the opposite parties sold the said vehicle for Rs.12,000/- and the said amount was adjusted in the loan account. But even after crediting the same amount, there was a deficit of Rs.29,163/- as on 22.7.2009 to close the loan account. Even after repeated requests, the petitioner never turned up to pay the said balance amount. Hence the opposite parties issued notice to the petitioner requesting him to pay the dues and also intimated the appointment of Arbitrator in the event to failure in clearing the dues. But the petitioner never turned up. On 17.3.2010, the opposite party filed claim statement before the Arbitrator and the petitioner has not responded. An arbitration award was passed on 26.4.2010 and the petitioner received it on 28.9.2010. Now the petitioner apprehends an execution petition on the decree passed against him. So there is no deficiency from the part of the opposite parties.
3. The point for consideration is whether there was any deficiency in service on the part of the opposite parties, and if so, for what relief the complainant is entitled to ?
4. No oral evidence adduced by both the parties. Exts.P1 to P4 marked on the side of the complainant and Exts.R1 to R4 marked on the side of the opposite parties.
5. The POINT: - As per the complainant, he purchased a vehicle for an amount of Rs.44,900/- and paid Rs.17,000/- at the same day itself, the balance amount Rs.27,900/- was availed as loan from the opposite party. The repayments of the loan was with Rs.1,236/- of 36 monthly instalments. Ext.P1 is the copy of the RC Book of the vehicle and the loan pass book is marked as Ext.P2. The complainant paid an amount of Rs.15,110/- to the opposite parties as 12 instalments. He was not able to repay the balance amount promptly because he was at Bhopal because his daughter's husband died due to a road accident and the due amount and interest were not able to repay with the income from the tapping job of the complainant. So he surrendered the vehicle to the opposite party as per the assurance given by the opposite party that the loan account will be closed and the vehicle was surrendered on 18.6.2009, Ext.P3 is the inventory report of the opposite party for the same. The vehicle fetch a market value of Rs.35,000/- at the time of surrendering the same. At that time, the pending loan amount was only Rs.29,386/-, but the opposite party demanded for an amount of Rs.29,163/- which the complainant is not entitled to pay.
Ext.P4 is the bank statement issued from the Chengalam Service Co-operative Bank Ltd., for the payment of the amount. As per the opposite party, the loan amount of the vehicle was 31,400/- and it was repayable with interest and the EMI after calculating the interest was Rs.1,236/- for 36 monthly instalments. The schedule of the same and the hypothecation agreement is marked asExt.R3. The complainant never paid the instalments promptly. As per the opposite party, the
(cont....3)
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vehicle was surrendered to the opposite party by undertaking, the balance amount due will be cleared on behalf of the complainant and it was signed by the complainant. Ext.R1 is the letter given by the complainant at the time of surrendering the vehicle to the opposite party. So the opposite party sold out the vehicle for an amount of Rs.12,000/- which is the market value of the vehicle at that time and the balance amount was not paid by the complainant after the demand notice, so an arbitration award was passed against the complainant for an amount of Rs.29,163/-. Copy of the same is marked as Ext.R2.
It is admitted by the opposite party that the complainant availed a loan of Rs.31,400/- from the opposite party and the payment was with interest with EMI of 1,236/- for 36 months, as per Ext.R3 agreement and schedule. As per Ext.P4 ledger copy of the complainant's account produced from the Chengalam Service Co-operative Bank Ltd, the complainant paid an amount of Rs.15,118/- to the opposite party through cheque leaves. So the balance amount due to the opposite party by the complainant was only Rs.29,386/-. As per the complainant, at the time of surrendering the vehicle, the vehicle fetch a market value of Rs.35,000/-. But as per the opposite party, the value of the vehicle was only Rs.12,000/-, the instalments and interest will come about Rs.29,163/- and the amount was awarded as per the arbitration and the complainant is entitled to pay the amount as per the award.
So we think that at the time of surrendering the vehicle, the vehicle has been covered only two years and four months and the market value of the vehicle, which the opposite party alleged to have sold is Rs.12,000/-, is very low. As per the complainant, the market value was Rs.35,000/-. So we fix the market value of the vehicle at the time of resale as Rs.25,000/- and the opposite party must calculate the due instalments with 12% interest from the date of due after deducting the amount Rs.15,118/- from the total amount of the loan. The complainant has paid 12 instalments which is Rs.15,110/-. So the opposite parties should calculate the balance due instalments at 12% interest after deducting Rs.25,000/- as the market value of the vehicle. The arbitration award passed was an exparte one. The complainant was not able to repay the loan because he was out of station due to the death of his daughter's husband and he is a coolie.
Hence the petition partially allowed. The opposite parties are directed to close the loan account of the complainant's vehicle by calculating the market value of the vehicle as Rs.25,000/- at the time of sale and the balance due instalments can be calculated with 12% interest per annum from the date of due after deducting 8 instalments paid by the complainant.
Pronounced in the Open Forum on this the 28th day of February, 2011
Sd/-
SRI. LAIJU RAMAKRISHNAN (PRESIDENT)
Sd/-
SMT. SHEELA JACOB (MEMBER)
Sd/-
SMT. BINDU SOMAN (MEMBER)
(cont......4)
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APPENDIX
Deposition :
On the side of the Complainant :
Nil.
On the side of the Opposite Parties :
Nil.
Exhibits :
On the side of the Complainant :
Ext.P1 - Copy of the RC Book of the vehicle.
Ext.P2 - Copy of the loan pass book.
Ext.P3 - The inventory report of the opposite party for the surrender of the vehicle.
Ext.P4 - The ledger copy of the complainant's account produced from the Chengalam Service
Co-operative Bank Ltd..
On the side of the Opposite Parties :
Ext.R1 - The letter given by the complainant at the time of surrendering the vehicle to the
opposite party.
Ext.R2 - Copy of the Arbitration award passed against the complainant dated 26.4.2010.
Ext.R3 - Loan cum hypothecation agreement dated 21.2.2007.
Ext.R4 - Copy of the Power of attorney of opposite parties.
