Md.Saleem vs Ashok Leyland Finance Ltd.

THIS is a complainant''s appeal against the order dated 6.11.1997 passed in Case No. 40/96 by the District Consumer Disputes Redressal Forum, Indore (for short the ''District Forum'').

THE facts giving rise to this appeal are thus : the appellant purchased a Eicher Canter on 7.7.1994 in Rs. 4,20,455/- which was financed by the respondent No. 1 and insured with the respondent No. 2. In terms of hire purchase agreement, the appellant was to pay loan amount in 36 monthly instalments of Rs.11,370/-. Till August, 1995 the appellant deposited an amount of Rs. 89,800/-. In May, 1995, the vehicle met with an accident in which the appellant had to incur expenditure of Rs. 55,000/-. THE appellant submitted the claim with the respondent No. 2 for Rs. 46,000/-. THE respondent No. 2 appointed the Surveyor who assessed the net loss of Rs. 23,294/-. On the basis of the Surveyor report the respondent No. 2 settled the claim and paid the amount of Rs. 23,294/- to the financer, the respondent No. 1 in terms of the policy. THE respondent No. 1 for non-payment of instalments of the outstanding loan amount repossessed the vehicle on 4.9.1995 and made a demand on 7.9.1995 for the amount due of instalments of Rs. 85,000/- but the outstanding amount was not paid. THE appellant filed the complaint for deficiency in service in not settling the claim against the respondent No. 2 and for the possession of the vehicle against respondent No. 1. THE complaint was resisted. THE District Forum after appreciation of evidence held that in terms of the policy the respondent No. 2 paid the amount of accident claim as assessed by the Surveyor to the respondent No. 1. THE respondent No. 1 in terms of hire purchase agreement repossessed the vehicle for default of payment in instalments of the loan amount. THE truck purchased was for the commercial purposes, therefore, the appellant was not a consumer as defined under Section 2(1)(d) of the Consumer Protection Act, 1986 (for short the ''Act''), hence, dismissed the complaint. In view of the fact that the appellant purchased the Eicher Canter after taking loan under hire purchase agreement with the respondent No. 1 for earning his livelihood by means of self-employment, the appellant was a consumer in view of the Explanation of Section 2(1)(d) of the Act.

However, the amount of Rs. 23,294/- of accident claim after settlement was paid by the respondent No. 2 to the respondent No. 1 in terms of the hire purchase agreement which cannot be said to be deficiency in service.

THE tanker was repossessed for default in payment of overdue instalments as per hire purchase agreement and parked by respondent No. 1 of which notice was sent to the appellant on 7.9.1995 that outstanding monthly hires of Rs. 88,000/- alongwith other finance charges all other costs incurred be paid within 7 days on receipt of letter failing which the agreement shall be at liberty to recover the outstanding amount by sale of the vehicle in terms of hire purchase agreement. THE action of the respondent No. 1 was not illegal as held by the National Commission in case of the Manager, St. Mary''s Hire Purchase (Pvt.) Ltd. v. N.A. Jose, III (1995) CPJ 58 (NC), where the complainant purchased the vehicle under hire purchase agreement and was defaulter in payment of instalments, owners were authorised under the terms of agreement to retake and recover possession of vehicles if any monthly hire remained unpaid for seven days after its due date hence, exercised of that right under agreement cannot be said to be deficiency in service. In the circumstances, the order of the District Forum cannot be faulted with the appellant if so advised, may take appropriate proceedings in accordance with law against the respondent No. 1 or in the Court of competent jurisdiction for the reliefs claimed against the respondent No. 1.

IN the result, the appeal fails and is dismissed with no order as to costs. A copy of this order be conveyed to the parties and a copy be sent to the District Forum alongwith record of the case. Appeal dismissed.