State Consumer Disputes Redressal Commission
Icici Bank Ltd vs I.P. Chauhan on 19 April, 2007
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 :19.04.2007 Appeal No. A-07/44 (Arising from order dated 17.11.2006 passed by the District Forum (East), Community Centre, Saini Enclave, Delhi 110092 in case NO. C-663/06 M/s ICICI Bank Ltd. Appellant Land Mark, Race Course Circle, Vadodara-390007 (Registered Office) E-Block, Videocon Tower, Jhandewalan Extension, New Delhi (Branch Office) Versus Mr. I.P. Chauhan, Respondent 104-A, Old Anarkali, Krishna Nagar, Delhi-92 CORAM Justice J.D. Kapoor President Ms. Rumnita Mittal Member
1 Whether reporters of local newspapers be allowed to see the Judgement.
2. To be referred to the Reporter or not.
Justice J.D. Kapoor (oral)
1. Vide Impugned Order dated 17.11.2006 the appellant bank from whom the respondent financed a motor cycle of Hero Honda make was directed to pay margin money of Rs. 11000/- and also Rs. 3000/- as cost of litigation as the appellant bank seized the vehicle forcibly for non-payment of two installments of loan and subsequently sold the same at much lower price.
2. We have already taken a considered view that wherever the bank repossesses the vehicle for non payment of installment by the consumer and chooses to sell the vehicle, it is bound to refund the margin money which was paid by the consumer and adjust the depreciated value of the vehicle and not the auction value and return the post dated cheques issued subsequent to the date of seizure of the vehicle.
3. In this regard, view taken by this Commission in Appeal No. A-954/2006 , Magma Leasing Ltd. Vs. Mr. Bharat Singh is as under:
(i) They shall not take the possession of the vehicle forcibly by employing musclemen and enforce this right through process of law and if they do so they shall not only be proceeded against for criminal offence by the Police which shall be registered against the C.E.O. of the company but shall also be liable to pay to the consumer compensation of Rs.25,000/- in case of two wheeler and Rs.50,000/- in case of a car or any other vehicle for mental agony, emotional sufferings, insult and humiliation and physical harassment as the term compensation under the Consumer Protection Act, 1986 encompasses all these factors in its fold.
(ii) Financer shall, while adjusting the sale price of the re-possessed vehicle, shall calculate the market value at the depreciated value i.e. @5% per annum in case of passenger vehicle and refund the balance amount including the amount contributed by the consumer towards the price of the vehicle after adjusting the loan amount. Over and above they shall return the post dated cheques bearing date after the date of the seizure of the vehicle.
Any violation of these directions shall invite action u/s 27 of the Consumer Protection Act, 1986.
4. On the aforesaid premises, we do not find any merit in the appeal and dismiss the appeal.
5. FDR/Bank Guarantee, if any, submitted by the appellant, be returned to the appellant forthwith under proper receipt.
6. 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.
7. Announced on the 19th April, 2007.
(Justice J.D. Kapoor) President.
(Rumnita Mittal) Member rk