Telangana State Commission Holds Hinduja Leyland Finance Liable Deficiency in Service Unfair Trade Practices (Consumer Case)
The complainant took a loan from Hinduja Leyland Finance to purchase a passenger vehicle, agreeing to pay 48 monthly installments. After defaulting on payments, the finance company seized the vehicle without notice, sold it at a low price, and claimed additional dues.
Despite the complainant’s attempts to settle the amount, the company did not return cheques or documents. The complainant filed a complaint seeking a refund of paid installments, compensation, and correction of CIBIL records. The District Commission ruled in favor of the complainant, directing the company to issue a “No due certificate” and pay Rs. 1,00,000 as compensation.
The finance company appealed the decision to the State Commission. The State Commission noted that the complainant took a loan from the finance company to purchase a vehicle, which was hypothecated to them. The company failed to provide clear details about the vehicle’s sale, including the purchaser’s information, sale price, and transfer date, which constituted deficiency of service and unfair trade practices.
However, the complainant was found to be a willful defaulter, having made only a few payments over a four-year loan term. The Commission upheld the District Commission’s order, dismissed the appeal, and confirmed no entitlement to enhanced compensation, but allowed the complainant to withdraw the deposited amount with accrued interest as partial satisfaction of the decretal amount.
Source: – Live Law
By: – Rajat Ranjan
