Illegal Two-Wheeler Repossession Costs Patna Financier Rs 50,000
A consumer commission in Patna has found that a financier acted unlawfully by taking possession of a motorcycle over unpaid loan installments without completing the required legal steps. The District Consumer Disputes Redressal Commission has treated the omission as a deficiency in service and has granted relief to the buyer who filed the complaint.
The complaint was filed by Saurabh Raj. The commission has directed the financier to service the seized motorcycle completely and return it in working condition. The financier must also pay Rs 10,000 as compensation for mental harassment and physical distress, and Rs 10,000 as litigation expenses.
The complainant had purchased the motorcycle on July 31, 2013, with a loan of Rs 65,000. The repayment schedule consisted of 20 equal monthly instalments of Rs 3,245. When instalments were missed, the financier took the vehicle on August 18, 2014, through the concerned parties. The complainant contended that the necessary notice process had not been followed before the seizure.
The commission reviewed the required notices that must precede any seizure of a vehicle. These include a demand for the outstanding amount, a loan recall notice, and a notice of intention to seize the vehicle. The financier failed to produce the notice of intention to seize, and the commission held this failure against it.
To comply with the order, the financier has been given 120 days from receiving the copy of the order to service the motorcycle and hand it back to the complainant, along with the payment of compensation and costs. If it does not comply within this period, the amount due will carry 12 percent per annum simple interest from the end of three months until actual payment or delivery of the vehicle.
The commission has further ruled that if the financier does not return the motorcycle in running condition after servicing, it must pay Rs 50,000 towards the vehicle's cost. The order was passed by Prem Ranjan Mishra, President, and Rajneesh Kumar, Member, of the District Consumer Disputes Redressal Commission, Patna.