Kerala

Idukki

CC/227/2017

Sajeev - Complainant(s)

Versus

Manager Sree Ram Finance - Opp.Party(s)

Adv.Benny Joseph

30 Apr 2019

ORDER

DATE OF FILING : 26/10/2017

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 30^th day of April 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT.ASAMOL P. MEMBER

CC NO. 227/2017

Between

Complainant : Sandeep, S/o Mohanan,

Karipalatharayil House,

Attappallam P.O., Kumily Village,

Peermade Taluk.

(By Adv: Benny Joseph)

And

Opposite Party : Shriram Transport Finance Company Ltd.,

Kattappana Branch, Kattappana P.O.,

Kattappana Village, Idukki District,

Represented by its Branch Manager.

(By Adv: Gem Korason)

O R D E R

SRI. S. GOPAKUMAR (PRESIDENT)

 

The case of the complainant is that,

 

Complainant availed a vehicle loan of Rs.6,31,663/- from the opposite party financier for purchasing his vehicle having Reg. No.KL-37/B-1139, on 07/06/12, agreed to repay it with 60 instalments. The total amount to be repaid is Rs.9,46,701/- along with interest. Complainant remitted altogether 55 instalments ie, Rs.8,82,227/- and balance amount is due is Rs.64,474/-. The complainant further averred that he is ready to pay the said loan dues but the opposite party is claiming penal interest and other unwanted charge that was not disclosed at the time of sanctioning the loan. Opposite party has no manner of right to demand again interest over they already added on the principle borrowed amount. Complainant paid first two years insurance premium of the vehicle and the opposite party is said to be paid the balance insurance and towards the complainant has paid Rs.5000/- per month. The receipts are not entrusted so far with the complainant. So the maximum amount due to the opposite party including insurance amount may come to Rs.1,54,474/- but instead of it, opposite party claiming more than three Lakhs rupees. Complainant further averred that opposite party illegally charged and

(Cont....2)

-2-

 

added amounts fraudulently in their account as D.P.I. and I.S.T. Upon the monthly due amount of Rs.15,714/- at the varying date of Rs.6,184, Rs.2,884/- etc on different rates, and complainant is not liable to pay such unwanted amounts and entries in their account and there is no contract, offer or acceptance in that regard in between the complainant and opposite party. Hence alleging deficiency in service against the above said act of the opposite party, complainant filed this petition seeking relief such as to direct the opposite party to restrain from taking forcible possession of the vehicle and further restrain them from realizing default and penal interest and direct them to pay compensation and cost.

 

Upon notice opposite party entered appearance and filed detailed reply version denying the averments in the complaint. Opposite party further contented that on 07/06/12, loan was advanced to the complainant and the loan amount is Rs.6,31,663/- and the interest is Rs.3,15,038/-. The complainant had made default in repaying the said amount and an amount of Rs.4,38,186/- is pending in their account as on 19/12/17. The complainant further availed working capital loan (WCL) of Rs.28,897/- on 23/05/14 agreed to repay it with interest in 12 instalment @ Rs.3095/- per month. The complainant further availed WCL on 24/06/15 Rs.29,155/- for 12 months instalments @ 3,221/- including interest. Like wise he availed WCL in 18/06/16, Rs.30,701/- agreed to repay it with 12 instalments @ 3,427/- including interest, and again on 23/06/17 further availed WCL of Rs.29,441/- and agreed to repay it with 12 instalments @ Rs.3,900/- along with interest. The complainant miserably failed to repay the WCL as agreed. The opposite party had claimed only what they legally entitled and the complainant is not entitled to keep away from paying the due amount by above said lame excuses. The complainant is a gross defaulter and the payments are made after the stipulated period, and hence the opposite party is entitled to claim over due charges as per the firm of the agreement and the complainant is liable to pay the same.

 

Opposite party further contented that, they are sustaining loss due to the act of the complainant ans there is no cause of action against the opposite party and the complaint is liable to be dismissed.

 

(Cont....3)

-3-

Evidence adduced by both the parties by way of documents. Such as copy of RC book, schedule of loan repayments and copy of loan account are marked as Ext.P1 to Ext.P3 respectively.

 

From the opposite party side Ext.R1 (s) insurance policies for the year 2014-2015, 2015-2016, 2016-2017 and 2017-2018 and Ext.R2 loan statement of account for the period from 19/07/12 to 19/12/17 were marked.

 

Heard both sides,

 

The point for consideration is whether there was any deficiency in service from the part of the opposite party, and if so, for what relief the complainant is entitled to?

 

The Point:- We have heard the counsel for both sides and have gone through the evidence on record. It is an admitted fact that complainant availed a vehicle loan from opposite party financier on 07/06/12 and agreed to repay the amount with interest in 60 instalments @ Rs.15,714/- per month. As per Ext.R1 in addition to their loan complainant availed 4 loans for the Motor Vehicle Insurance as Working Capital loans from 2014 to 2017 and agreed to repay each WCL with interest in 12 instalments. For substantiating the version opposite party produced Ext.R1(s) insurance certificate 4 in numbers from 2015 to 2018. This documents was not challenged by the complainant, more over in the complaint he admitted that the availed some amount from the opposite party in addition to the main loan for remitting the insurance premium. No evidence produced by the complainant to convince the Forum that some of the insurance premium is remitted by him. More over except the loan account statement, no evidence is produced by the complainant to fortify his version that out of the total loan amount he remitted Rs.8,50,227/- that also with in the stipulated time as per the loan agreement. If the complainant remitted any of the loan instalment after the stipulated time, the opposite party has authority to realise penal interest as per law. Opposite party has no authority to realise interest over and above the stipulated rate as per the norms of the authority which controls them. Here on perusal of the loan statement of account it is seen that complainant is remitted some more instalment after the date stipulated and opposite party added much more

 

(Cont....4)

-4-

amount by way of penal and other incidental charges. No evidence is produced by the opposite party to convince the Forum that under what authority they imposing such amount in the loan account of the complainant, and opposite party is miserably failed to adduce any evidence to convince the Forum how they calculated the penal interest and other incidental charges. Opposite party has right to impose a normal rate of interest in default instalment. If they are charging exorbitant amount by way of penal interest and other charges in the defaulted instalments without having any legal footing, is a gross deficiency in service and unfair trade practice.

 

In this case the monthly instalment is fixed by adducing the interest to the loan amount. If any of the instalment is paid after the due date the opposite party is legally entitled to add 12% interest in the defaulted loan instalment. In this case the Forum fixing 12% interest in the defaulted instalment and directing the opposite party to issue a fresh statement of account to the complainant by calculating 12% penal interest in the defaulted instalments within 30 days from the date of this order and the Forum direct the complainant to remit the loan dues with 12% interest in the defaulted instalments as per the statement as directed by the Forum within 30 days from the date of receipt of such statement of account. No cost or compensation is ordered. The complainant is decided as such.

 

Pronounced in the Open Forum on this the 30^th day of April, 2019.

 

Sd/-

SRI. S. GOPAKUMAR (PRESIDENT)

Sd/-

SMT.ASAMOL P. (MEMBER)

 

 

 

 

 

 

 

 

 

(Cont....5)

-5-

 

APPENDIX

Depositions :

On the side of the Complainant :

Nil

On the side of the Opposite Party :

Nil

Exhibits :

On the side of the Complainant :

Ext.P1 - Copy of RC book

Ext.P2 - Schedule of loan repayments

Ext.P3 - Copy of loan account

On the side of the Opposite Party :

Ext.R1 (s) -Insurance policies for the year 2014-2015, 2015-2016, 2016-2017

and 2017-2018

Ext.R2 - loan statement of account for the period from 19/07/12 to 19/12/17

 

 

Forwarded by Order,

 

 

SENIOR SUPERINTENDENT