SHRIRAM TRANSPORT FINANCE COMPANY LTD. Vs. M. NARTARAJU

JUDGEMENT

(1.) Petitioner/Opposite Party has preferred this revision petition challenging impugned order dated 26.12.2008, passed by A.P. State Consumer Disputes Redressal Commission, Hyderabad (for short, 'State Commission') vide which First Appeal No.1381 of 2008 filed against order dated 22.9.2008 passed in Consumer Complaint No.153 of 2006 by District Consumer Disputes Redressal Forum, Kurnool (for short, 'District Forum' ) was dismissed.

(2.) Brief facts are, that Respondent/Complainant for purchase of Bajaj Tempo Jeep approached petitioner for financial assistance of Rs.80,000/-. On 13.1.2003, the said amount was given on condition of surety and hypothecating the motor vehicle in favour of the petitioner. The petitioner issued a cheque for Rs.61,000/- and endorsement of vehicle bearing No.AP.21.C.3888 was made in the registration certificate. Respondent agreed to repay the said amount within 24 instalments from 5.2.2003. Thereafter, respondent could not pay the instalments because of unfair trade practice of the petitioner in fixing the instalments. On 2.8.2003, petitioner seized the vehicle and gave notice dt. 7.9.2003 demanding payment of all instalments. The respondent paid Rs.10,000/- on 10.9.2003 and wrote a letter on 26.9.2003 assuring payment of remaining amount and requested the petitioner not to sell the seized vehicle. On 30.9.2003, respondent paid Rs.20,000/- which was acknowledged by the petitioner.

(3.) It is alleged that on 25.1.2005, petitioner issued legal notice asking respondent to pay Rs.71,016/- with 18% interest p.a. and in default the said matter is proposed to be referred the Arbitrator. Thereafter, respondent received notices from the arbitrator asking him to appear before them. But respondent was surprised to note, that vehicle had been sold for Rs.30,000/-, though value of the vehicle was Rs.2,50,000/-. There was no notice of sale of vehicle to the respondent. It is stated, that value of the vehicle given by petitioner to the Insurance Company is Rs.2,50,000/-. Thus, after deducting the balance of Rs.60,896/-, petitioner has to pay the amount to the respondent. Accordingly, respondent filed a complaint seeking direction to the petitioner to pay Rs.1,89,100/- with interest, compensation and costs.