Complainant/s:              Prabhuraja Kotrappa Desai,

                                                R/o Kalakeri, Taluk: Mundargi,

                                                Dist: Gadag.

                                                (Rep. by Sri.S.V. Hiremath, Advocate)  

V/s

ORDER

JUDGEMENT DELIVERED BY SRI. B.S. KERI,

This complaint is filed by the complainant against the OPs by invoking Sec 12 of the Consumer Protection Act 1986 to issue clearance certificate with cost and such other reliefs.

             The averments of the complaint in brief are:

         2.  The above complaint filed by the complainant stating that, on 11.07.2012 he obtained financial assistance of Rs.4,30,000/- from OP No.2 under agreement No.TFE 1567894 agreeing to repay the same in 8 equal installments of Rs.78,475/- commencing for the period from 05.12.2012 to 05.06.2016 and as per the agreement he paid the amount every month, for which the OP No.4 has issued the statement on 21.05.2019.  It is further submitted that, there was a delay in payment of 7^th installment of Rs.78,575/- and the complainant paid an amount of Rs.37,000/- on 30.12.2015.  So, the Advocate for OP No.4 has issued a notice SBM/KMBL/Tractor/DND/SL No 2/February 2016 dated 08.02.2016 stating to pay Rs.41,425/- towards balance loan amount with late payment and interest.  As such, on 15.02.2016 complainant paid the same to OP through RTGS in State Bank of India, Mundargi Branch and the last payment i.e., 8^th installment amount of Rs.78,517/- was paid from his father’s Bank account through NEFT.  The Complainant has paid Rs.4,30,000/- towards loan and Rs.1,97,796/- as interest for the period from 05.12.2012 to 27.06.2016.  The complainant has not received any intimation except the notice dated 08.02.2016.  It is further submitted that, on 21.05.2019 complainant approached OP No.5 seeking loan clearance certificate and other documents in respect of Tractor bearing No.KA-26 TA-6057 by giving application.  For that, OP No.5 told the complainant to approach Hubli Branch and they have no documents pertains to the said Tractor.  Thereafter, on the same day, complainant approached Hubli branch, wherein they told the complainant that, there is a balance of Rs.1,19,051/- towards the loan amount by giving a statement for the period from 21.05.2010 to 30.04.2019.  The complainant obtained the loan on 11.12.2012, the statement given by the Hubli Branch is not correct.  Therefore complainant got issued notice on 03.06.2019 through his Advocate claiming clearance certificate from the OPs, the OPs have not replied the same or given a loan clearance certificate.  But on 25.06.2019, the complainant received a notice from Pionex Law Association, Bangalore intimating to settle the matter by paying an amount of Rs.1,25,087/-, which is a deficiency of service on the part of OPs.  The cause of action for this complaint arose on 03.06.2019 when the complainant issued notice to the OPs.   Hence there is a deficiency in service and prayed to OPs and prayed to allow the complaint.

         3.   In pursuance of the notice issued by this Commission, the OPs appeared through Advocate and filed written version. 

          The brief facts of the Written Version of OPs

          4.       The OPs contended that, the complaint filed by the complainant is false, frivolous and vexatious and the complaint is not maintainable both in law and also on facts and the same is liable to be dismissed in limine. 

          It is further submitted that, the complainant availed financial assistance of Rs.4,30,000/- to purchase a Tractor and entered into an agreement under agreement No.TFE/1567894 on 11.07.2012 and the loan period starts from 05.12.2012 to 05.06.2016 with loan EMI of Rs.78,475/- each and the tenure is 8 (half yearly) installments is true and correct.  It is false to state that, the complainant has paid the installments regularly and it is true that, the last installment was not paid in time and as such the OPs have sent notice to pay the same and complainant paid the same.  It is true that, 8^th installment was paid by way of NEFT on 27.06.2016.  The complainant paid the loan installments but, not paid the same in time as per the agreement and as per the agreed date.  Hence, the complainant is liable to pay the overdue charges as agreed in the agreement and the OPs are having a right to charge the same.  It is further submitted that, complainant agreed and undertook that, in case of delay in payment of the installments and other money became due and payable under the agreement on the respective due dates as stipulated in the agreement, he shall pay additional interest on such defaulted amount from the date of default till the date of payment as per the schedule.  Complainant was extremely reluctant to pay the said installments within time as provided under the said agreement.  The complainant after availing loan facility, granted by the OPs, failed and neglected to make the payment of loan installments as agreed and has delayed and failed to pay the loan installments and accordingly, breached the terms and conditions of the agreement.  It is further submitted that, complainant approached the OPs for clearance certificate in respect of loan availed to purchase the tractor Mahindra & Mahindra – Mahindra Bhumiputra 575 (45HP) bearing No.KA-26/TA-6057 and not paid the installments regularly as per the agreement.  Therefore, the penal interest and other financial charges are charged as per the terms of loan agreement and as such, the complainant is still liable to pay an amount of Rs.1,25,087/- towards full and final settlement as on 21.06.2019.  In spite of paying the said amount, the complainant applied for No Due Certificate, the same will be issued only after full payment of the entire outstanding dues of the loan account.   Therefore, the complaint is not maintainable under the provisions of C.P Act and there is no cause of action for this complaint and prayed for dismissal of the complaint.    

         5.  The complainant filed his Chief affidavit along with 13 documents.  On the other hand, the Associate of OPs filed chief affidavit and no documents have been got marked.

    COMPLAINANT FILED DOCUMENTS AS follows

         6.   On pursuance of the materials, placed by the complainant and OPs, the following points arises for our consideration:-

1. Whether the complainant has proved the deficiency in service

on the part of the OP as averred in the complaint?

2. Whether the complainant is entitled to any relief?
3. What Order?

    7.       Our findings to the above points are:-

              Point No. 1:  Affirmative

              Point No. 2:  Partially Affirmative

              Point No. 3:  As per the final Order

R E A S O N S

           8.  POINT NO.1 AND 2:  Both the points are inter-linked and identical. Hence we proceed both the points together.

           9.      It is pertinent to note that, on 11.07.2012 the complainant obtained financial assistance of Rs.4,30,000/- from OP No.2 under agreement No.TFE 1567894 agreeing to repay the same in 8 equal installments of Rs.78,475/- which was commencing from 05.12.2012 to 05.06.2016 and he paying the EMI every month.  But for the 7^th installment, out of Rs.78,575/-, the complainant was paid an amount of Rs.37,000/- on 30.12.2015.  After that, OP No.4 issued a notice No. SBM/KMBL/Tractor/DND/SL No 2/February 2016 dated 08.02.2016 to the complainant calling upon him to pay Rs.41,425/- towards balance loan amount which including late payment fee and interest.  The same has been paid by the complainant on 15.02.2016 to OP through RTGS and the last installment amount of Rs.78,517/- was paid from his father’s Bank account through NEFT.  In all the Complainant has paid Rs.4,30,000/- towards loan and Rs.1,97,796/- as interest for the period from 05.12.2012 to 27.06.2016.  But, the complainant not received any intimation except the notice dated 08.02.2016 for payment of any amount.  Thereafter, on 21.05.2019 complainant approached OP No.5 seeking Loan Clearance Certificate and other documents in respect of Tractor bearing No.KA-26 TA-6057 by giving application.  OP No.5 told the complainant to approach Hubli Branch.  On the same day, complainant approached Hubli Branch, they told the complainant that, there is a balance of Rs.1,19,051/- towards the loan amount by giving a statement for the period from 21.05.2010 to 30.04.2019. 

          10.     On the other hand, OPs submitted that, the complainant availed financial assistance of Rs.4,30,000/- to purchase a Tractor and under agreement No.TFE/1567894 on 11.07.2012 and the loan period starts from 05.12.2012 to 05.06.2016 agreeing to pay EMI of Rs.78,475/- each and the tenure is 8 (half yearly) installments is true and correct.  But the complainant was not paid the installments regularly and the last installment was not paid in time and complainant was extremely reluctant to pay the said installments within time as provided under the said agreement.  The complainant after availing loan facility, failed and neglected to make the payment of loan installments as agreed which is a breach of terms and conditions of the agreement.  Complainant approached the OPs for clearance certificate in respect of loan availed to purchase the tractor Mahindra & Mahindra – Mahindra Bhumiputra 575 (45HP) bearing No.KA-26/TA-6057 and not paid the installments regularly as per the agreement.  Therefore, the penal interest and other financial charges are charged as per the terms of loan agreement and as such, the complainant is still liable to pay an amount of Rs.1,25,0874/- towards full and final settlement as on 21.06.2019. 

          11.     On going through the records on file, complainant availed a financial assistance from the OPs for purchase of Tractor agreeing to repay the same with 8 equal half yearly installments of Rs.78,475/- eachand the complainant has paid the same as per the agreed terms and conditions.  While paying the 7^th installment, complainant has paid Rs.37,000/- and thereafter he paid an amount of Rs.41,425/- on 15.02.2016.   8^th installment of Rs.78,511/- has been paid as per the calculation made by the OPs.   After payment of the entire loan amount, complainant asked the OPs to provide No Due Certificate and hypothecation cancellation certificate pertains to the Tractor.  But the OPs refused to give the same on the ground that, there is a balance of Rs.1,25,087/-, the same is not accepted by this Commission as the Advocate for OPs issued a notice to the Complainant on 08.02.2016 stating that, for the 7^th installment there was a balance of Rs.41,425/- which includes the late payment fee with penal interest.  The above said amount has been paid by the complainant on 15.02.2016.  So, after payment of the 7^th installment, the last installment of Rs.78,511/- has been received by the OPs from the complainant as per the demand of OPs.  After payment of the last installment, the complainant approached the OPs for NOC, but the OP No.5 instructed the complainant to approach OP No.4.  While approaching the same, OP No.4 demanded the amount of Rs.1,25,087/- which has been balance towards the complainant.  While going through the record on file, i.e., the statement, it is clear that, complainant had paid the last installment on 27.06.2016 and demanded the NOC from the OPs.  It is the fault of the OPs towards the due of complainant if any, it has to be demanded by noticing the same to the complainant in the year 2016 itself.  While the complainant approached them, they demanded the amount of Rs.1,25,087/-, it is unbelievable that, they cannot impose the collection charges, overdue interest every time till 30.04.2019 it is for three years.  When the last EMI had been completed, what else is avoided the OPs to demand the amount from the complainant since from three years.  Hence, it is clear that, if the OPs demanded the same in the year 2016 itself, the statement which was prevailed that, only interest and overdue charges is more than the interest.  Hence, Commission comes to the conclusion that, OPs cannot made such type of delay and deficiency towards their work.  Hence, we answer Point No.1 in Affirmative & Point No.2 is in Partly Affirmative.   

            12.  POINT NO. 3: In view of our findings on the above points, the complaint filed by the complainant is partially allowed. In the result, we pass the following: 

//O R D E R//

          1.  The above Complaint is partially allowed.

          2.   The OPs are hereby directed to issue N.O.C along with related documents pertaining to the Tractor bearing Reg.No.KA-26 TA-6057 by executing the cancelation of hypothecation to the complainant within 30 days from the date of this order, failing which, the OPs are hereby directed to pay Rs.10,000/- to the Consumer Welfare Fund.

3.       OPs are hereby directed to pay Rs.5,000/- compensation towards mental agony and Rs.3,000/- towards cost of the proceedings.

4.       Send the copies of this order to the parties free of cost.

           (Dictated to the Stenographer, transcribed by him, corrected and then pronounced by me in the Open Court on this 23^rd day of April-2021)

          (Shri B.S.Keri)                               (Smt.C.H.Samiunnisa Abrar)

               MEMBER                                                 PRESIDENT