Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1986: Consumer Protection Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Consumer Protection Act, 1986 (68 of 1986) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Dismissed |
Headnote | Consumer Protection Act, 1986:ss.2(1)(r) and 12 – Complaint alleging unfair trade practiceand deficiency in service – Against the appellant-financier, withwhom the complainant had entered into hire-purchase agreementfor purchase of a vehicle – Alleging that even though thecomplainant had paid 7 out of 35 instalments, the Financier tookpossession of the vehicle without notice and sold the vehicle refusingto concede to his request for opportunity to clear the outstandinginstalments – Fora below allowed the complaint directing thefinancier to refund the instalments paid by the complainant withinterest and to pay damages and litigation cost and also the amountwhich was paid to dealer of vehicle directly by the complainant –Appeal to Supreme Court – Held: Under a Hire-Purchase agreement,goods are let out on hire, with an option to purchase, in accordancewith the terms of the agreement – The financier continues to beowner of the goods until the option to purchase (upon payment ofagreed amounts) is exercised by the hirer – There is no legalimpediment to the financier taking repossession of the goods, upondefault in payment of instalments – The Consumer Protection Actdoes not override the contract Act – Requirement of notice to thehirer before repossession would depend on the terms and conditionsof the agreement – If stipulation of notice are violated, non-servicewould tantamount to deficiency in service and the consumer wouldbe entitled to compensatory damages – If non-service of noticecauses loss to the hirer, consumer/hirer is entitled to punitive damages– In the present case there is no evidence of any loss suffered byhirer due to non-receipt of notice – There is no deficiency in serviceand no case of unfair trade practice is made out – The direction offora below has given a defaulting hirer, benefit of free use of thevehicle. |
Judge | Hon'ble Ms. Justice Indira Banerjee |
Neutral Citation | 2020 INSC 574 |
Petitioner | M/s. Magma Fincorp Ltd. |
Respondent | Rajesh Kumar Tiwari |
SCR | [2020] 11 S.C.R. 59 |
Judgement Date | 2020-10-01 |
Case Number | 5622 |
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