DATE OF FILING : 19.2.2016
IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 30th day of March, 2017
Present :
SRI. S. GOPAKUMAR PRESIDENT
SRI. BENNY. K. MEMBER
CC NO.63/2016
Between
Complainant : Jence Kurian, S/o. Kurian,
Kudavanappattu House,
Kattappana P.O.,
Idukki.
(By Adv: Jeen Kurian)
And
Opposite Parties : 1. The Managing Director.
Mahindra and Mahindra Financial
Services Ltd.,
Gateway Building, Appollo Bunder,
Mumbai – 400 001.
2. The Branch Manager,
Mahindra and Mahindra Financial
Services Ltd.,
Branch Office, Kattappana P.O.,
Idukki.
(By Adv: Saji Augustine)
O R D E R
SRI. BENNY. K. (MEMBER)
The complainant had availed a loan for Rs.4,44,635/- from the opposite party to purchase a Ford Ikon bearing Reg. No.KL-6E-7077. He had agreed to repay the amount of Rs.6,01,440/- by 48 monthly installments which includes the availed amount of Rs.4,44,635/- and finance charges of Rs.1,56,805/-. The opposite party insisted him to sign on certain printed paper and also obtained blank signed cheque leaves. The complainant was regular in repaying the installments, but due to financial crisis, effected the repayments of the loan and the complainant was unable to remit two installments within the stipulated time. The loan period was from 31.8.2010 to 31.7.2014. The complainant received a
(cont....2)
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notice from the opposite party demanding an amount with huge interest rate. The complainant requested the opposite party to return the documents and to issue termination letter as agreed at the time of closing the loan account. The 2nd opposite party demanded Rs.70,581/- as penal interest and additional finance charges. The entire loan amount was paid by the complainant and demand of more money is illegal. The 2nd opposite party is purposefully making unlawful gain from the complainant by demanding huge amount as penal interest. The above act of the opposite party is unfair trade practice and gross deficiency in service. The complainant is not liable to pay the overdue charges which is 36% according to the illegal demand of the opposite party. Hence the complainant approached the Forum for getting a direction to issue termination letter and return all documents obtained from him at the time of availing loan and declare that no dues from the complainant to the opposite party.
In the written version, opposite party had admitted that complainant had entered into a loan agreement to purchase a Ford Ikon car bearing Reg. No.KL-6E-7077. The agreed amount was Rs.4,44,635/- which was to be repaid in 48 installments of Rs.12,530/- per month. The complainant had never approached the opposite party in person or through agents to settle the matter. This opposite party never demanded huge or exorbitant rate of interest. The complainant had signed the loan agreement and upon which the loan was disbursed to the complainant. As per the loan agreement, the complainant is boud to pay additional finance charges to the opposite party in case of any default in paying the installments. The complainant was very irregular in making the payment. As on 2.3.2016, an amount of Rs.52,936/- is due to the opposite party and only upon the payment of the said amount, the complainant is entitled to receive the termination letter.
The point for consideration is whether there is any deficiency in service from the part of opposite parties and if so, for what relief the complainant is entitled to ?
(cont....3)
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The evidence consists only documentary evidence and Exts.P1 to P4 were marked on the side of complainant.
The POINT :- Complainant had availed a loan of Rs.4,44,635/- from the opposite party to purchase a Ford Ikon car bearing Reg. No.KL-6E-7077. He had agreed to repay the amount of Rs.6,01,440/- by 48 monthly installments, which includes the availed amount of Rs.4,44,635/- and finance charges of Rs.1,56,805/-. The opposite party had insisted him to sign on certain printed papers and also obtained blank signed cheque leaves. The complainant was very regular in repaying the installments, but the financial problems affected the repayment of the loan and the complainant was unable to remit two monthly installments within the stipulated time. The complainant received a notice from the opposite party demanding an amount with huge interest rate. The complainant approached the opposite party for getting back the documents and termination letter, but the opposite party demanded Rs.70,581/- as penal interest and additional financial charges. The entire loan amount was paid by the complainant and demand of more money is illegal. Ext.P1 and P3 are statement of account and repayment schedule. This act of opposite party is unfair trade practice and gross deficiency in service. The complainant produced Ext.P4 which is the receipt for the last payment made on 27.2.2015.
In the written version, opposite party had admitted that complainant had entered into a loan agreement to purchase a Ford Ikon car bearing Reg. No.KL-6E-7077. The loan amount was Rs.4,44,635/- which was to be repaid in 48 monthly installments of Rs.12,530/- per month. The complainant or his agent had never approached the opposite party for settle the matter. This opposite party never demanded huge and exorbitant rate of interest. The complainant was a chronic defaulter and had agreed to pay the default interest for the delayed payment. Opposite party has no contention against the repayment of the loan amount. The only dispute is regarding the default charge. Opposite party has stated in the written
(cont....4)
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version that they are ready to issue termination letter of the vehicle if the complainant pays Rs.52,936/- which is the due as on 2.3.2016. Since complainant is a chronic defaulter and had agreed to pay the default charges made in repayment. So the complainant is liable to pay the default charge for delayed payment. But the opposite party has not produced any authentic documents from the RBI or Government to show that they can charge 36% as default interest. Hence opposite party is not entitled to charge 36% interest per annum for the delayed installments, which is illegal.
Hence the petition partially allowed. Opposite party is directed to settle the loan account of the complainant by accepting only the dues without any penal interest and issue the termination letter and return all other documents collected while availing the loan, within 30 days of receipt of a copy of this order.
Pronounced in the Open Forum on this the 30th day of March, 2017
Sd/-
SRI. BENNY. K., MEMBER
Sd/-
SRI. S. GOPAKUMAR, PRESIDENT
Exhibits :
Ext.P1 - Statement of account.
Ext.P2 - Letter from opposite party.
Ext.P3 - Repayment schedule.
Ext.P4 - Receipt.
/ Forwarded by Order /
SENIOR SUPERINTENDENT
