M/S MAGMA LEASING LIMITED Vs. BHARAT SINGH

JUDGEMENT

(1.) THE respondent in this revision petition was the complainant before the District Consumer Disputes Redressal Forum II, New Delhi ('the District Forum', in short) and the petitioner was the opposite party (OP). For convenience, we shall refer to them as such.

(2.) THE complainant alleged deficiency in service against the OP because in January 2005 the latter forcibly repossessed his motor vehicle (a Toyota Qualis van that he had purchased in November 2003 with a loan of Rs. 3.90 lakh from the OP) though by then, according to the complainant, he had repaid Rs. 2,18,142/-. After seizing the vehicle illegally, the OP sold it in July 2005 allegedly for Rs. 1.90 lakh (though according the complainant, the vehicle was actually sold for Rs. 4.17 lakh) and then claimed a balance of Rs. 92,845/- as still payable by the complainant. He, therefore, prayed for return of the vehicle (or, payment of balance amount after deducting the amount due from the market price of the vehicle), Rs. 2.30 lakh as compensation for business loss and harassment and mental agony suffered by him and Rs. 10,000/- towards costs.

(3.) THE OP/petitioner contested the allegations by filing its written version in which it stated that it had repossessed the vehicle in January 2005 in accordance with the terms of the agreement between the parties because the complainant was a repeated defaulter. It sold the vehicle in July 2005 at the best quoted price after following due process. As the complainant did not still pay the balance loan amount of Rs. 92,845/- despite notice issued to him, the OP, again according to the terms of the loan-cum-hypothecation agreement, referred the dispute to an arbitrator in September 2005 and the arbitrator passed an award in favour of the OP. Hence, the OP claimed that District Forum had no jurisdiction to adjudicate upon the complaint.