State Consumer Disputes Redressal Commission
Sunderam Finance Ltd vs Amit Kumar Sharma on 20 March, 2008
IN THE STATE COMMISSION: DELHI IN THE STATE COMMISSION: DELHI (Constituted under section 9 clause (b) of the Consumer Protection Act, 1986) Date of decision: 20.03.2008 First Appeal No.08/87 (Arising from the order dated 06.12.2007 passed by District Forum ( New Delhi) K.G. Marg, New Delhi in Complaint Case No.1710/2001) Sunderam Finance Ltd. Appellant, 21, Patullos Road, Chennai through Mr. Sanjay Kumar, advocate. 607-608, 6th Floor, Ashoka Estate, 24, Barakhamba Road, New Delhi. Versus Sh. Amit Kumar Sharma .Respondent S/o Sh. M.P. Sharma, 68-69, Baba Colony, Burari, New Delhi. CORAM: Justice J.D. Kapoor, .. President Ms. Rumnita Mittal. Member
1. Whether reporters of local newspapers be allowed to see the judgment?
2. To be referred to the Reporter or not?
Justice J.D. Kapoor, President(ORAL)
1. Vide impugned order dated 06.12.2007, the appellant has been directed to pay Rs.50,000/- for causing mental agony, harassment and lifting of vehicle in illegal manner besides Rs.5,000/- as cost of litigation.
2. Feeling aggrieved the appellant has preferred this appeal.
3. The allegations leading to the impugned order are that the respondent entered into a loan agreement for purchasing a new Tata Indica car bearing No. DL-B- CU-4999 for loan amount of Rs.2,90,000/- which was to be paid in 47 monthly instalments of Rs.7,854/- each commencing on 22.01.2003 and last was to be paid on 22.11.2006. The appellant obtained the signatures of the respondent on various papers, copy of which was never supplied to the respondent. The respondent deposited 47 post dated cheques of Rs.7,854/- each issued in favour of the appellant, one instalment was already paid in advance. The respondent purchased the said vehicle from Mirkana Engineering, Connaught Place, after the cash payment of Rs.59,000/-. The respondent continuously regularised his loan account and his posted dated cheques in favour of the appellant were clear54ed regularly till 11.09.2003. Due to financial constrains the respondent could not pay instalment of the month of October 2003 but he informed the employee of the appellant, Sh. Shyam Sunder on 08.11.2003 on telephone that he shall deposit the instalment of the October and November 2003 positively in the month of November 2003. The respondents driver informed him that on 13.11.2003, some unknown persons in the early morning hours of 9 AM snatched /towed away the vehicle of the respondent from road and those persons told the driver that they are from Sunderam Finance, the appellant. The respondent informed the appellant that his vehicle has been lifted on 13.11.2003 which was not replied.
4. While justifying the repossession of the vehicle, the appellant did not deny the taking of the loan and fixing of the instalment. It was because of persistent default committed by the respondent, the vehicle was repossessed. The appellant admitted that the vehicle was taken on 13.11.2003.
5. We have perused the impugned order, it is a case of taking away vehicle, against which the respondent has taken loan from the appellant, forcibly by snatching the car from the driver of the respondent, as the respondent could not pay instalment of October and November 2003.
6. In identical cases we have taken a view which has been upheld by the National Commission in Revision Petition No.737/2005 titled Citicorp Maruti Finance Ltd. Vs S. Vijayalaxmi and subsequently by the Honble Supreme Court in ICICI Bank Vs Prakash Kaur that no financer, bank has authority to forcibly take possession of the vehicle as the loan agreement or the hypothecation agreement are civil contract and therefore have to be executed through civil remedy i.e. through intervention of the court and unless the bank is equipped with the order from the court for repossessing the vehicle it has no authority to go to the house of the borrowers to take away the vehicle forcibly.
7. Whenever any bank resorts to such a method it is liable to compensate the consumer as to the mental agony, harassment and humiliation suffered by him and return the post dated cheques as with the possession of the vehicle contract of loan stands terminated and liability discharged. At the same time bank is required to refund the margin money contributed by the consumer.
8. Word compensation has been provided very wide connotation by the Supreme Court in Ghaziabad Development Authority Vs. Balbir Singh (2004) 5 SCC 65, as it encompasses in its fold each and every element of sufferings i.e. mental agony, harassment, physical discomfort, humiliation or insult or injury. Observations of Supreme Court in this regard are quote worthy and are as under:
The word compensation is of a very wide connotation.
It may constitute actual loss or expected loss and may extend to compensation for physical, mental or even emotional suffering, insult or injury or loss. The provisions of the Consumer Protection Act enable a consumer to claim and empower the Commission to redress any injustice done. The Commission or the Forum is entitled to award not only value of goods or services but also to compensate a consumer for injustice suffered by him. The Commission/ Forum must determine that such sufferance is due to malafide or capricious or oppressive act. It can then determine amount for which the authority is liable to compensate the consumer for his sufferance due to misfeasance in public office by the officers. Such compensation is for vindicating the strength of law.
9. The appellant has been directed to pay compensation of Rs.50,000/- to the respondent and Rs.5,000/- as cost of litigation as the respondent had paid all the installments upto September 2003 and the appellant had received the entire sale consideration of Rs.1,90,000/- whereby the loan amount stood satisfied.
10. We do not find any infirmity in the impugned order and dismiss the appeal being devoid of merit.
11. The payment shall be made within one month from the date of receipt of this order.
12. A copy of this order as per the statutory requirements be forwarded to the parties free of charge and also to the concerned District Forum and thereafter the file be consigned to Record Room.
Announced today on 20th day of March 2008.
(Justice J.D. Kapoor) President (Rumnita Mittal) Member Tri