BEFORE THE DISTRICT FORUM: KURNOOL

Present: Sri. T.Sundara Ramaiah, B.Com B.L., President

And

Sri. M.Krishna Reddy, M.Sc., M.Phil., Male Member

And

         Smt. S.Nazeerunnisa, B.A., B.L., Lady Member

Monday the 25^th day of July, 2011

C.C.No.46/2011

Between:

Pugiyala Abdul Rehiman, S/o P.Mohammed Saheb,

H.No.16-180-1,Yemmiganur, Kurnool District-518 360.                     

        …Complainant

                                              -Vs-

The Manager,Mahindra and Mahindra Financial Service Limited,

Branch office, D.No.40-31-4, Park Road, Kurnool-518 001.                                                 

…OPPOSITE PARTY                                                     

      This complaint is coming on this day for orders in the presence of Sri Shaik Chand Basha, Advocate for complainant and opposite party as called absent for upon perusing the material papers on record, the Forum made the following.

                                             ORDER

(As per Smt. S.Nazeerunnisa, Lady Member)

                                           C.C. No. 46/2011

1.     This complaint is filed under section 11 and 12 of C. P. Act, 1986 praying to direct the opposite party:-

1. To issue a no objection certificate and also loan clearance certificate for a Tractor bearing No. AP 21 X 3074;

(b)    To grant a sum of Rs.50,000/- towards the damages for causing mental suffering and physically agony to the complainant  with interest at 6% per annum from 12-06-2008 to till date by opposite party for not issued the N.O.C. in time;

(c)    To grant the costs of the complaint;

                                        And

1. To grant such other relief or reliefs as the Hon’ble Forum may deem fit and proper in the circumstances of the case.

2.    Briefly the complainant version is that, the complainant purchased  Mahindra and Mahindra Tractor 265 DI Bhoomiput bearing the chassis No.R.A.R 3144 under the financial assistance of Mahindra and Mahindra Finance i.e., from the opposite party.  The loan                      agreement is with the opposite party.  The Tractor registered under R.T.A. No.AP 21 X 3074.  At the time of purchase the complainant paid an amount of Rs.1,11,000/- (One lakh eleven thousand) towards advance and the balance amount paid in 24 installments at the rate of Rs.11,700/- (Eleven thousand seven hundred)  per month as per the agreement.  The receipt of advance amount and 23 installment receipts are marked as Ex.A3 and the last receipt dated 12-06-2008 is marked as Ex.A4.  After the completion of all the installments the complainant requested to issue No Objection Certificate and loan clearance certificate.  The opposite party did not issue the same.  The complainant is a contractor and he purchased the Tractor for transporting the construction material to worksite and he has been facing problems with the authorities without having N.O.C. Finally the complainant got issued a legal notice to the opposite party on 11-08-2010 which is marked as Ex.A1 and acknowledged the same by opposite party it is marked as Ex.A2.  The reply notice issued by opposite party dated 26-11-2010 is marked as Ex.A3. Though the complainant paid all the 24 installments as per the agreement the opposite party is avoiding to issue No Objection Certificate and loan clearance certificate.  It comes under deficiency of service.  Hence this complaint is filed.

3.     The complainant filed sworn affidavit and documents marked as Ex.A1 to A5 in support of this case.

4.     The opposite party called absent and set exparte.

5.     The complainant filed written arguments.

6.     The points for consideration are:-

1. Whether there is any deficiency of service on the part of the opposite Party?

1. Whether the complainant is entitled to the reliefs as prayed for?

1. To what relief?

7.      POINTS 1 & 2:- It is the case of the complainant that the complainant had availed the loan from the opposite party for the purchase of Tractor Mahindra 265 DI Bhoomiput bearing chassis No.R.A.R 3144 and registered under R.T.A. No.AP 21 X 3074.  The loan agreement reference No.422117 is with the opposite party.  At the time of purchase on 09-03-2006 the complainant paid Rs.1,11,000/- (One lakh eleven thousand) towards advance and the balance amount paid in 24 installments at the rate of Rs.11,700/- (Eleven thousand seven hundred)per month as per the agreement. The complainant has filed all the original receipts endorsed by the opposite party which is marked as Ex.A5 (bunch of 23 receipts and advance receipt) and the last receipt is marked as Ex.A4 dated              12-06-2008.  As seen from all the receipts placed on record it is very clear that the complainant has paid all the 24 installments.  He made payments under receipt No.80537751 dated 05-03-2007, 31480139 dated 20-09-2007, 32695961 dated 06-05-2008 with delay. 

8.     According to the complainant after the completion of all the installments when he requested to issue No Objection Certificate and loan clearance certificate, the opposite party refused to issue the same on one pretext or the other.  Finally the complainant got issued a legal notice to the opposite party on 11-08-2010 which is marked as Ex.A1.   The opposite party acknowledged the same.  It is marked as Ex.A2.  The opposite party issued reply notice on 26-11-2010 which is marked as Ex.A3.  The opposite party stated in Ex.A3 that the complainant has caused delay in payments under the   contract.  So he has to pay at the rate of 36% as late charges on the delayed amount for the period of delay occasioned.  We think the rate of 36% interest is too excessive and penal and it is not just and proper.  After considering all the material on record we are of the view that the complainant has to pay the interest at the rate of 12% on delayed amount only for the period of delay occasioned. 

9.     In the result, the complaint is partly allowed directing the opposite party to issue No Objection Certificate and loan clearance certificate for a Tractor bearing No.AP 21 X 3074 on receipt of interest 12% on late payments under receipts No.80537751, 31480139, 32695961. The time for compliance is four weeks from the date of this order.     

Dictated to the stenographer, transcribed by her, corrected and pronounced by us in the open bench on this the 25^th day of July, 2011.

         Sd/-                                             Sd/-                                    Sd/-

MALE MEMBER                      PRESIDENT                   LADY MEMBER

                                APPENDIX OF EVIDENCE

Witnesses Examined

For the complainant : Nil                  For the opposite party : Nill

List of exhibits marked for the complainant:-

Ex.A1                Office copy of legal notice dated 11-08-2010 issued to

opposite party.

Ex.A2.       Postal receipt and acknowledgement.

Ex.A3                Photo copy of reply notice dated 26-11-2010 issued by

opposite party to complainant.

Ex.A4                Receipt No.32696199 for Rs.11,700/- dated 12-06-2008.

Ex.A5                A bunch of receipts (No.in 23).

List of exhibits marked for the opposite party:- Nill

         Sd/-                                             Sd/-                                 Sd/-

MALE MEMBER                      PRESIDENT                 LADY MEMBER

// Certified free copy communicated under Rule 4 (10) of the A.P.S.C.D.R.C. Rules, 1987//

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