The Ernakulam Consumer Disputes Redressal Commission has asked a prominent non-banking financial company (NBFC) involved in vehicle finance to pay ₹1.2 lakh to a customer on allegations that it had failed to lift the hypothecation on his vehicle despite full repayment of loan.
The commission, comprising president D.B. Binu and members V. Ramachandran and Sreevidhia T.N., issued the verdict on a petition filed by Antony K.V. of Kothad, Ernakulam, against the company.
Of the ₹1.2 lakh, ₹1 lakh has to be paid as compensation to the complainant for the financial loss, emotional distress, and mental agony suffered owing to the deficiency of service and unfair trade practice committed by the company. The remaining 20,000 is towards the cost of the legal proceedings, it said.
The petitioner, who is a goods vehicle driver, submitted that he was forced to take personal loans at high interest rates and sell his personal assets owing to action taken by the opposite party. The company authorities rejected the allegations and denied any service deficiency. They alleged that he had defaulted on monthly loan repayments and was unwilling to settle the debt despite repeated demands. They also claimed that the petitioner had a dues of around ₹1 lakh, and his default status was reported to Credit Information Bureau (India) Limited.
The commission said the petitioner had furnished substantial evidence while corroborating the claim of full repayment of loan and the consequent entitlement to have the hypothecation lifted.
