MAGMA FINCORP LIMITED Vs. VIJAY KUMAR

JUDGEMENT

(1.) THIS is another case of forcible repossession of the vehicle by a non -banking finance company without following the rule of law.

(2.) THIS revision is filed against the concurrent judgments and orders of the Fora below. The facts of the case, in brief, are that the truck bearing registration No. HR -47 -8469 was purchased by the complainant Sri Vijay Kumar after availing financial assistance from the opposite parties. He has deposited the instalments towards repayment of the loan and the last instalment was deposited by him during May, 2007. On 2.7.2007 when the truck was being plied in the area of Balwara (Jaipur), some musclemen of the opposite parties forcibly took possession of the vehicle. Subsequently when the complainant visited the office of the opposite parties, they refused to return the vehicle on the ground that there were irregularities in repayment of the loan amount. Therefore, a complaint was filed before the District Forum stating that forcible repossession of the vehicle caused financial loss to the tune of Rs. 1,25,000. He has also claimed towards mental agony and other expenses. In total he claimed Rs. 2 lakh along with 12% interest to be paid to him apart from delivery of the vehicle in question. This case was contested by the opposite parties. It was pleaded that the complainant was informed before taking repossession of the vehicle on 6.7.2007, which was as per terms and conditions of the agreement and the legal notice was also issued on the same day and the complainant was asked to pay outstanding amount within seven days. Therefore, the vehicle was auctioned on 31.7.2007. The District Forum after hearing the parties allowed the complaint and directed the opposite parties as follows:

(3.) AGGRIEVED by the order of the District Forum, the opposite parties filed appeal before the State Commission with the delay of 112 days along with an application for condonation of delay. The application for condonation of delay was rejected by the State Commission quoting the judgment of the Hon'ble Apex Court in Bikram Dass v. Financial Commissioner and Ors., 1977 AIR(SC) 2221 The State Commission observed that musclemen of the opposite parties had forcibly taken the possession of the vehicle by taking law in their hands. Therefore, the appeal was dismissed in limine both on the ground of limitation as well as on merits.