In a relief to a woman who had lost Rs 5 lakh as initial payment to a BMW dealer, as she had failed to pay the balance amount due to non sanctioning of her loan, the State Consumer Disputes Redressal Commission has ordered the dealer to refund the amount with an interest and pay compensation for making her run from pillar to post.
In 2011, Smita Mhatre had booked a BMW for Rs 55 lakh and paid a booking amount of Rs 5 lakh. She had given the papers to the dealer to process the loan for the balance amount. The dealer could not arrange the loan and informed Mhatre that banks refused to grant her a loan as she had a record of non-payment of a loan. When she requested them to cancel the booking and refund her amount, they refused and said that the loan could not be processed due to her fault.
Mhatre suffered a setback in 2016 as an Additional Thane District Consumer Forum had dismissed her 2014 complaint against Bavaria showroom, Pune. The district forum said in its judgment that since the entire transaction took place at Pune, it was outside its territorial jurisdiction and that except Mhatre’s bare words, there was no evidence that the dealer had promised to arrange for the loan for the balance amount. “It is neither the duty nor the responsibility of the dealer to arrange a loan for its customers,” it said.
Aggrieved by the order of the district forum, Mhatre had approached the State Commission. In its judgment pronounced on Wednesday, President Justice AP Bhangale and Member SK Kakade said that the order passed by the district forum is ‘not correct and legal’ and that the act of non-refund of booking amount relying on terms and conditions ‘amounts to unfair trade practice and deficiency in service’.
“Complainant had to run from pillar to post and had to suffer mental and physical harassment…hence complainant is entitled for compensation in the sum of Rs 50,000,” it said. It added that though the cancellation of the booking was at the instance of Mhatre, she is entitled to refund of booking amount along with interest.
The dealer had challenged the jurisdiction of the State Commission on the basis that the cost of the car - Rs 55 lakh, was beyond its pecuniary jurisdiction. The Commission said that the complainant had prayed for refund of Rs 5 lakh - the booking amount, and was not claiming the car or its value, hence that the claim falls within its pecuniary jurisdiction.
The dealer had also argued that as per a condition in its Terms and Conditions for sale of Vehicle, which the customer had signed, in the event of cancellation of vehicle, there will be no refund of the booking amount. The Commission observed that though the document is signed by customer, it is ‘unilateral’.
Further, that is not evident that it is explained to and understood by the customer, a fact not considered by the district forum before dismissing Mhatre’s complaint.
Justice Bhangale directed the dealer to pay Rs. 10,000 as costs to Mhatre. It directed to pay within a month the booking amount of Rs. 5 lakh at interest of 9 per cent per annum from 2011 onwards when the payment was realised. If it is not paid within a month, the showroom would have to pay an interest on it of 12 per cent per annum, it ordered. Similarly, if compensation of Rs. 50,000 is not paid within a month, an interest of 12 per cent would have to be paid on it, it said.
