Patna: The District Consumer Disputes Redressal Commission in Patna has ruled that taking possession of a two-wheeler without following the required legal procedure can amount to a deficiency in service, even when the borrower has defaulted on loan repayments.
Allowing a complaint filed by Saurabh Raj, the Commission directed the concerned financier to return his seized motorcycle after complete servicing and ensure that it is in proper running condition. The financier was also ordered to pay ₹10,000 as compensation for mental distress and physical harassment, along with ₹10,000 towards litigation expenses.
How the Motorcycle Was Seized
According to the case records, Saurabh Raj purchased a Bajaj Pulsar 130 cc motorcycle on July 31, 2013, using a loan of ₹65,000 from the financier. The loan was repayable in 20 equal monthly instalments of ₹3,245 each.
After the borrower defaulted on the repayments, the motorcycle was seized on August 18, 2014. Raj challenged the action, alleging that the required notice procedure had not been followed before the vehicle was taken into possession.
Commission Finds Deficiency in Service
During the proceedings, the Commission examined the procedure that should be followed before a hypothecated vehicle is seized. This included issuing a demand notice for outstanding dues, a loan recall notice and a notice communicating the intention to seize the vehicle.
The financier failed to produce the notice indicating its intention to seize the motorcycle. Taking this failure into account, the Commission concluded that the required procedure had not been properly demonstrated and found a deficiency in service.
The Commission consequently ruled in favour of the complainant and issued directions for the return of the vehicle and payment of compensation.
Financier Given 120 Days to Return the Motorcycle
The Commission ordered the financier to complete the motorcycle’s servicing and return it in proper running condition within 120 days of receiving a copy of the order.
In addition, the financier must pay ₹10,000 as compensation and ₹10,000 towards litigation costs. If the order is not complied with, simple interest at 12% per annum will apply to the amount due after three months, continuing until actual payment or delivery.
The order also specifies that if the financier fails to return the motorcycle in running condition after servicing, it must pay ₹50,000 towards the cost of the vehicle.
The decision was delivered by Shri Prem Ranjan Mishra, President of the District Consumer Disputes Redressal Commission, Patna, and Shri Rajnish Kumar, Member.
Disclaimer
This article is intended for general informational purposes only and is based on the case details provided. It does not constitute legal advice. Readers seeking guidance on vehicle repossession, loan recovery or consumer disputes should consult a qualified legal professional and refer to the official Commission order for the precise findings and directions.