VAIDA VIJAYA Vs. SAINATH HIRE PURCHASE AND FINANCE

JUDGEMENT

(1.) Being not satisfied with the relief granted by the District Forum, Karimnagar passed in CD 281/99 this appeal is filed questioning the legality and propriety of it.

(2.) The facts of the case disclose that the complainant had borrowed loan from Opposite Party to purchase second hand jeep under self employment scheme on Hire Purchase Agreement. As per the conditions of the HP agreement the complainant has to repay the loan amount at the rate of Rs.4300/- per month in installments. The complainant had repaid the loan to a tune of Rs.40,000/- till May, 99 and from thereon due to financial crisis she could not repay the balance. While so, Opposite Party without giving any notice had taken a way the Jeep from her possession on 07.05.99. Subsequently, the Opposite Party failed to receive the balance of the amount and return the vehicle. The complainant is ready to pay the balance of the amount. The Opposite Party sent letter dated 20.5.99 to the complainant stating that they authorized their representative to seize the vehicle since there was default in payment of the loan amount. The act or omission on the part of the opposite party amounts to deficiency in service.

(3.) The Opposite Party denying the allegations has filed the counter stating that on 10.8.98, Rs.50,000/- towards loan was sanctioned and a payment was made through a cheque dt.13.8.98. The payment commences from 10.9.98 till 10.11.99 . The complainant had paid Rs.17,668/- in four instalments only but not regularly. The monthly installment was Rs.4,417/- but not Rs.4300/- . The remaining balance instalment were not paid subsequent to December, 1998. The fourth instalment was paid on 23.2.99. It is false to allege that a total sum of Rs.40,000/- was paid till May, 98. A balance of Rs.48,587/- was due. The OP after giving notice had seized the vehicle in May, 99. After seizure of the vehicle, they sent a letter dt. 19.08.99 through Registered post informing her to pay the outstanding amount and take back the vehicle but the complainant failed to show any interest. So the OP published a notice in Eenadu daily special dated 16.7.99 to auction the vehicle. In spite of it she failed to turn up. On 19.7.99, the vehicle was sold for Rs.93,000/-. That on 27.7.99 the complainant approached to offer him to pay the amount by which time the vehicle was sold away. The vehicle was sold as per law. The OP is ready to refund to balance of the amount by adjusting the amount due from her with interest and expenses thereon.