Standard Chartered Bank has been directed by a consumer forum here to pay Rs 2 lakh as compensation to a customer for repossessing his car without giving him notice for alleged default on his loan payments.
The New Delhi District Consumer Disputes Redressal Forum awarded the damages to the complainant after observing that the bank had not shown the account statements of the loan paid and balance due, the notice of repossessing the vehicle or the notice issued prior to its sale.
"The opposite party (bank) in its reply did not produce the statement of account of loan paid and balance due, nor produced any notice of repossessing of vehicle or notice before sale. It is simply pleading its rights as between creditor debtor.
"In the circumstances, we hold it guilty of negligence and deficiency and award compensation of Rs 1,50,000 for harassment and Rs 50,000 as litigation expenses as complainant despite all loan was deprived of his car and suffered loss and enjoyment of car. The opposite party will also issue a 'no dues certificate' to complainant," a bench presided by C K Chaturvedi said.
The order came on the complaint of Harinder Kumar Khosla, a resident of Dwarka here, who had submitted that he had availed Rs one lakh loan to buy the car.
Khosla had alleged that despite paying nearly Rs 80,000 towards loan repayment, the bank's recovery agents suddenly, without giving him any notice, forcibly repossessed his car and also sold it off for Rs 40,000 without informing him.