State Consumer Disputes Redressal Commission
Icici Bank Ltd.& Anr. vs Bhagwan Singh Shekhawat & Ors. on 29 March, 2011
BEFORE THE CONSUMER DISPUTES REDRESSAL COMMISSION(STATE COMMISSION)RAJASTHAN,JAIPUR. Appeal No.492/2010 ICICI Bank Ltd.,& anr. V. Bhagwan Singh Shekhawat & ors. 29.03.2011 Before: Mr.Justice Ashok Parihar-President Mr.Sikander Punjabi-Member
Mr.Vinay Kumar Chawla-Member Shri Abhishek Bhandari,counsel for the appellants Shri Hari Om for Shri Manish Mathur,counsel for the res.no.1 BY THE STATE COMMISSION.
This appeal has been directed against the order of the District Forum,Chittorgarh dated 24.02.2010 by which the District Forum has accepted the complaint of the res.no.1 and issued various directions to the appellants for handing over the seized vehicle to the res.no.1 and the District Forum has also given direction for recovery of the balance loan amount. The District Forum has also awarded Rs.6 lacs as amount of compensation for financial loss to the res.no.1 alongwith Rs.50,000/- as amount of compensation for mental agony.
Brief facts of the case are -
2that the res.no.1 had purchased a truck from Sandeep Motors,Chittorgarh. This truck was financed by the appellants bank and a sum of Rs.10,83,000/- was advanced by the appellants to the res.no.1. Res.no.1 paid initial monthly instalments for 19 months and after that committed default in depositing the monthly instalments. Consequently the appellants bank seized the vehicle on 31.07.2008 for nonpayment of the balance instalments.
The res.no.1 presented a complaint before the District Forum,Chittorgarh alleging deficiency in service.
The District Forum accepted the complaint of the res.no.1 and ordered as stated above.
The learned counsel for the appellants has challenged the order of the District Forum and has argued that it has not considered the legal position that the loan was disbursed on the terms and conditions settled under the loan agreement. The appellants bank had the right of seizure of the vehicle in case any condition was breached. The learned counsel has also argued that compensation awarded against the bank is also not sustainable as it was no fault of the bank. It was the fault of the res.no.1 that he committed default and the bank was forced to take the vehicle in its possession.
On the other hand,the learned counsel for the res.no.1 has argued that he was regularly paying the instalments in time. The bank has arbitrarily seized the vehicle and he has been deprived of his livelihood.
3During the course of the arguments it was also revealed that the res.no.1 has not complied with the order of the District Forum as he has not deposited with the bank Rs.1,15,520/- towards the balance instalments and has not taken the possession of the truck so far.
We have heard both the learned counsel and perused the order of the District Forum.
The District Forum has come to the conclusion that the res.no.1 was defaulter and on date of the seizure of the truck Rs.1,15,520/- were outstanding against the res.no.1 which he was ordered to deposit with the bank and obtain the possession of the truck.
In view of this we are of the opinion that when it was established that the res.no.1 was a defaulter, awarding of Rs.6 lacs as amount of compensation to the res.no.1 doesn't seem to be justified. As per the terms and conditions of the loan agreement the bank had a right to seize the vehicle in case of nonpayment of instalments. So this was not on account of any deficiency of service that the truck was seized by the bank. The res.no.1 could have immediately deposited the balance instalments and got the vehicle released. Even after the order of the District Forum the res.no.1 had not complied with the order for depositing the balance instalments which indicates that he is not interested in plying his truck. Therefore,the order of the District Forum to the extent of awarding Rs.6 lacs as amount of compensation for financial loss to the res.no.1 is set aside. The remaining order is not interfered with. The res.no.1 has the liberty to deposit the amount as ordered by the District Forum and to 4 take the possession of the truck and repay the amount as ordered by the District Forum.
With these directions this appeal is disposed off. There will be no order of costs for this appeal.
Member Member President a/g