KOTAK MAHINDRA BANK LTD. Vs. CHANDRESH KUMAR

JUDGEMENT

(1.) 'The short facts of the case are that the complainant purchased a truck on 4th June, 2004 for Rs.9,55,000, taking a loan of Rs. 8,10,000 from the OP bank under the terms and conditions given in Loan Agreement, a copy of which is available on the record. The loan was to be repaid within 35 monthly instalments of Rs.31,000 each, commencing from 10.7.2004, and the OP obtained from the complainant 35 blank signed cheques in advance. The complainant invested Rs.60,000 for installation of accessories in the truck, and some money for its body building. The complainants case is that after payment of seven instalments in all Rs.2,17,000, he was not in a position for the time being to pay the instalment due in January, 2005, and he had requested the bank not to present his cheque for encashment but the OP bank presented it, and the cheque was dishonoured. The bank on 7.2.2005, therefore treating it the complainants default, and without informing him, repossessed the truck illegally. The complainant, after the truck was repossessed, approached the bank authorities on 8.2.2005 to give back him the truck, but in vain. He therefore filed a complaint before the District Consumer Forum with a prayer that the OP bank be directed to pay him Rs.10,00,000 along with interest @ 2% p.a. from the date of institution of complaint till payment as compensation, Rs.11,000 towards the costs of litigation.

(2.) THE OP opposed the claim, and filed the written statement saying that the complainant failed to discharge his financial liability, that he was not paying the monthly instalments regularly. The bank sent several notices in this regard to the complainant, and since the complainant violated the terms of the loan agreement, the bank repossessed the vehicle peacefully. It is provided in the terms of loan agreement that the OP bank has got a right to repossess the vehicle in case of default, and therefore no question of deficiency of service, on the part of the OP bank arises.

(3.) THE District Consumer Forum on consideration of evidence of both the parties, and hearing them held that OP has violated the guidelines of RBI in this behalf, and clearly violated the law, and decreed the claim of the complainant against the OP for Rs.9,55,000, the entire price of the truck, Rs.2,00,000 towards mental agony and harassment and deficiency of service, and Rs.10,000 towards the costs of litigation.