The State Consumer Disputes Redressal Commission (SCDRC) modified a district forum’s ruling, and set aside a relief amount of Rs.5,000 as compensation. It was dealing with a case between a complainant and the HDFC Bank Limited over a motorbike loan.
The SCDRC Bench was of the view that Rs.5,000 compensation was excessive. The district forum prior to this had awarded Rs.5,000 as compensation to G. Bhaskara Rao, and also asked the HDFC Bank Limited to pay him Rs. 25,000 with nine per cent interest from October 21, 2009.
The bank then appealed to the State Commission, aggrieved by the decision.
According to the SCDRC website, Mr. Rao had purchased a Hero Honda Passion Plus bike on loan from HDFC Bank in the city, for which he had to pay Rs.1,600 for 36 months between November 2006 and 2009, after paying an initial payment of Rs.4,649. The total amount was Rs.42,250.
In his complaint to the district forum, Mr. Rao claimed that retrieval agents had seized his bike in September 2009 without giving him a notice and that too when only two instalments remained.
After the district forum’s ruling, the HDFC Bank contended that it was entitled to repossess the bike without any prior notice and Mr. Rao had defaulted on payments of the instalments. It also said that it had issued a notice to Mr. Rao for non-payment of the instalments, and since he did not respond, it had sold the bike for Rs.27,000. The bank also stated that after sale proceeds, it had sent a letter to Mr. Rao to receive a balance of Rs.6,326.
The district forum, in its ruling said that the HDFC Bank had sold the bike in Mr. Rao’s absence, and it had a duty to protect his interests. It noted that it was not diligent in selling the vehicle, and thereafter gave its judgement.
Based on the bank’s appeal, the SCRDC Bench then decided to set aside the Rs.5,000 compensation.
