S.JESURETNAM vs GOUTAM FINANCE CORPORATION

THIS appeal arises out of the order of the District Consumer Disputes Redressal Forum, Nagercoil, in O.P. No. 93/95 on its file.

THE complainant is the appellant herein. He filed the complaint against the respondent/opposite party financier for a direction to them to return the key and RC book of scooter No. TN 74 6710 and pay Rs. 500 towards cost of the complaint on the following allegations. He entered into a hire purchase agreement with the opposite party on 16.8.1991 and obtained a loan of Rs. 12,000 and agreed to repay in all Rs. 18,000 in 25 instalments. As security for the loan, he surrendered the RC book and key of the scooter. The last instalment had to be paid on 16.9.1993. He wrote to the opposite party to intimate the balance amount due. On 11.3.1994 the opposite party wrote to the complainant stating that there was a balance of Rs. 3,500 and asked the complainant to pay that immediately. The complainant sent the amount. The opposite party received the same on 9.4.1994. The complainant had so far paid Rs. 18,300 and, therefore, there was no balance. However, the opposite party not having returned the key and the RC book, the complaint came to be filed.

The opposite party resisted the complaint stating that as per the agreement, the complainant agreed to repay each and every late payment with additional hire charges, that due to irregular payments, the complainant was due in a sum of Rs. 3,667.50 as additional hire charges that was by way of default interest. The complainant after promising to pay the amount had come forward with the complaint, for which there was no cause of action.

IT would appear that originally the complaint was allowed, but the opposite party came to the State Commission and had a remand and after remand the matter came to be decided by the District Forum afresh. The District Forum found on the basis of Ex. B1 that the complainant had committed some delay in remitting the due amounts with regard to the 16th to 19th instalments and with regard to 20th, 22nd, 23rd and 24th instalments, he did not pay the dues, that as the complainant had paid the dues after some delay, the opposite party was entitled to be paid at 36% interest as default interest, that this amount worked out to Rs. 3,667.50, that subject to the complainant paying this amount within 60 days from the date of order, the opposite party was to hand over the key and the RC book and No Objection Certificate to the complainant within 15 days from the date of receipt of the amount. The aggrieved complainant has filed the present appeal.

ACCORDING to the complainant the direction to pay Rs. 3,667.50 was irregular that the District Forum ought not to have directed the complainant to pay the amount to the opposite party as a condition precedent for getting the RC book, the key and the No Objection Certificate. It is seen that the amount of Rs. 3,667.50 has been arrived at by working out the interest on the balance due at 36% per annum which, in our view, is usurious and the District Forum ought not to have directed the complainant to pay at such a high rate of interest. The order of the District Forum directing the complainant to pay that amount cannot be sustained. We, therefore, partly allowed the appeal and direct the complainant to pay @ 12% per annum towards interest on the delayed payments to the opposite party as a condition precedent for getting back the RC book, the key and the No Objection Certificate. The order of the District Forum is varied as indicated above.

IN the result, the appeal is allowed in part. There will be no order as to costs. Appeal partly allowed.