Shri Hardyal Singh son of Shri Inder Singh,

Resident of Village and P.O. Dhar, Tehsil Jubbal,

District Shimla, H.P.
… Complainant.
Versus
M/S TML Finance Ltd.,

1st floor, Goma Niwas, Lower Jakhu,

Tehsil and District Shimla, H.P.171005

…Opposite Party
O R D E R:

Sureshwar Thakur (District Judge) President:- The instant complaint has been filed by the complainant by invoking the provisions of Section 12 of the Consumer Protection Act, 1986. The complainant avers that he is owner of Tata LPT truck bearing registration No.HP-03B-0151, which was financed by him from the OP and he was to repay the financed amount along with interest in 36 equal monthly instalments (EMI) at the rate of Rs.20,220/- each, from 28.05.2004 to 25.04.2007. It is further averred that the complainant paid all installments till 30.04.2007 vide different modes of payment and the OP had issued no objection certificate in relation to the said vehicle. It is also ever that instead of issuing NOC the OP has charged amount for the insurance a sum of Rs. 38,000 which is arbitrarily and wrongly charged.

As a matter of fact the complainant himself got the vehicle insured at his own cost from the date of purchase of the vehicle. Due to adamant attitude of the OP despite several request to settle the claim of the complainant, the complainant issue legal notice upon OP which was duly received vide Annexure C-X. Despite receipt of the notice, OP neither refunded the amount of Insurance wrongly charged by the OP nor issued NOC in relation to the vehicle to the complainant till date. Hence, it is averred that there is apparent deficiency in service on the part of the OP and accordingly relief to the extent as detailed in the relief clause be awarded in favour of the complainant.

2. The OP did not put in appearance before this Forum despite service through registered post, hence was ordered to be proceeded against exparte on 02.01.2008.

3. We have heard the learned counsel for the complainant and have also thoroughly scanned the entire record of the case meticulously.

4. The only controversy, which requires determination from this Forum, is, as to whether the OP-Company was legally justified in deducting the amount of insurance premium, amounting to Rs.38,229/- from the loan instalments, thereby withholding the, no, objection certificate. It is asserted on behalf of the complainant that the amount of insurance premium was paid by him to the insurance company, which fact, is, also divulged from the copies of insurance cover note and receipt bearing Annexures C-3 to C-5. Since, these documents having remained unrebutted on record, the only inference which is to be drawn, is, that the amount of insurance premium was paid by the complainant at the time when the truck in question was insured by him, to the insurance company, and the defence of the OP-Company that the amount of insurance premium amounting to Rs.38,229/- was deducted from the loan instalments as shown and reflected in Annexure C-6 is patently wrong and illegal.

5. In so far as the assertion of the complainant as asserted in paragraph 13 of the complaint with regard to the outstanding amount of Rs.17,936/- payable by the complainant to the OP, is, concerned, since, this, pertains to the settlement of account and this Forum, is, not in a position to give findings on this point, as, it, requires elaborate evidence as well as adjudication of statement of accounts with regard to default in repaying the EMI of loan amount well in time. Whereas, it is apparently clear from the afore discussed documents, that the action of the OP-Company in deducting the amount of Rs.38,229/- from the loan amount on the pretext of insurance premium was highly unjustified and illegal and the OP-Company is liable to refund the said amount to the complainant along with interest.

6. In the light of the above, we allow the complaint. The OP-Company is directed to refund Rs.38,229/- to the complainant along with interest at the rate of 9% per annum from the date of filing of the complaint, which happens to be filed on 11.09.2007, till making actual payment. The litigation cost is quantified at Rs.1500/-. These payments shall be defrayed to the complainant by the OP-Company within a period of forty five days after the date of receipt of copy of this order. However, the complainant is directed to approach the OP-Company and OP-Company is directed to settle the loan account of the complainant amicably and after settlement, the OP-Company shall issue no objection certificate in favour of the complainant forthwith. With these observations, the complaint stands disposed of accordingly.