LAFFANS INDIA PVT LTD Vs. CITI BANK

JUDGEMENT

(1.) -complaint has been filed under Sec.2 (1) (c) and Sec.17 of the Consumer Protection Act, 1986 .

(2.) Complainant is an incorporated company under the Indian Companies Act purchased a Contessa Classic car from M/s. Classic Motor ,pvt. Ltd for the use of its Chairman-Cum Managing Director's personal cum family use by taking a loan of Rs.1,49,205/- from opposite party No.1 The said loan was to be repaid in 36 equal monthly instalments of Rs.5,413/- only and for this the complainant excuted a loan cum hypothecation agreement dated 27th January, 1990. Thirty sever blank signed cheques were issued by the complainant towards the payment, of the above mentioned 36 instalments over a period of three years, instalments being payable monthly, Complainant insured the said vehicle with M/s. Oriental Insurance Company and paid the premium for the year 1990-91 by handing over a cheque for the premium amount to the Citi Bank (Opposite party No.1) for being handed over to opposite party No.2 in order to safeguard the interests of the Bank. The Insurance company issued Cover Note No.870585 dated 1-2-90 for the said car for the year 1990-91 to the Bank who further handed it over to the complainant.

(3.) Complainant gave two more blank cheques to Citi Bank for being given to the Insurance Company for the premia for the years 1991-92 and 1992-93 drawn on ANZ Grindlays Bank Connaught Place, New Delhi.