MAGMA FINCORP LTD Vs. HAKAM SINGH

JUDGEMENT

(1.) This revision petition has been filed by the petitioner M/s. Magma Fincorp Ltd. against the order dated 24.05.2012 of the State Consumer Disputes Redressal Commission, Punjab, (in short 'the State Commission') passed in FA No.434 of 2009.

(2.) Brief facts of the case are that the petitioner entered into a hire purchase agreement with the respondent on 29.06.2006 for financing a vehicle to the respondent. The loan amount was Rs.5,20,000/-, which was to be returned in 47 monthly instalments of Rs.14,750/-. The vehicle was repossessed by the petitioner on 10.08.2008 alleging that there was an outstanding due against the respondent/complainant. As stated by the petitioner pre-sale notice was sent to the respondent/complainant on 13.08.2008 with the information to the respondent that there is a dues of Rs.3,99,992.67 and the same should be paid within seven days. The vehicle was later on sold by the petitioner for Rs.4,20,000/-. The respondent filed a consumer complaint being CC 08/451 on 16.09.2008 before the District Consumer Forum, Sangrur, (in short 'the District Forum'). The complaint was resisted by the petitioner/opposite party on the ground that the car was repossessed as per the terms and conditions of the hypothecation agreement as the complainant became defaulter of many instalments. However, the District Forum allowed the complaint and ordered the vehicle to be released to the complainant along with a compensation of Rs.1,00,000/-. It was also directed that if the vehicle has been sold, outstanding amount shall be adjusted from that amount and the blank cheques shall also be returned to the complainant. Both the parties preferred appeal against the order of the District Forum. First Appeal No.434 of 2009 was filed by the petitioner herein and First Appeal No.232 of 2009 was filed by the respondent herein. The State Commission dismissed the appeal filed by the petitioner and allowed the appeal filed by the respondent/complainant by directing the opposite party to pay lump sum amount of Rs.4,75,000/- to the complainant to be paid within a month. It was also directed that if the amount is not paid within 30 days, it will carry an interest of 9% p.a. from the date of the order of the State Commission till actual payment.

(3.) Hence the present revision petition.