Mahindra and Mahindra Financial Services Ltd. vs Nizamuddin

NON­REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 8043 OF 2022

Mahindra and Mahindra Financial Services Ltd. …Appellant(s)

Versus

Nizamuddin …Respondent(s)

JUDGMENT

M.R. SHAH, J.

1. Feeling aggrieved and dissatisfied with the impugned

judgment and order dated 23.03.2022 passed by the

National Consumer Disputes Redressal Commission

(hereinafter referred to as the National Commission) at New

Delhi in Revision Petition No. 222 of 2022, by which, the

National Commission has dismissed the said revision

petition preferred by the appellant and ultimately has not

Signature Not Verified interfered with the order passed by the District Forum Digitally signed by NIRMALA NEGI Date: 2022.11.04 16:23:57 IST Reason: confirmed by the State Commission ordering return/refund

of Rs. 3,45,000/­ being insurance amount of the vehicle

1 sold which was hypothecated after deducting 10%

depreciation and directing that the appellant to pay the

complainant Rs. 300/­ per day towards compensation/loss

suffered because of not plying of the vehicle from the date

of picking up of the vehicle hypothecated and sold from

19.12.2004 till the date of payment of the actual amount,

the original opponent – financial company has preferred

the present appeal.

2. Vide order dated 14.07.2022 a limited notice has been

issued by this Court on the amount of

compensation/damages awarded by the District Forum at

Rs. 300/­ per day. Therefore, the short question which is

posed for consideration of this Court is whether the District

Forum was justified in awarding the

compensation/damages at Rs. 300/­ per day?

3. Having heard learned counsel appearing on behalf of the

respective parties and having gone through the order

passed by the District Forum confirmed up to the National

Commission it appears that no cogent reason has been

given by the District Forum determining/awarding the

compensation/damages at Rs. 300/­ per day. While

2 awarding the compensation/damages at Rs. 300/­ per day,

it is observed by the District Forum as under: ­

“As far as the question of granting compensation to the complainant is concerned the said vehicle of the complainant was insured from the Oriental Insurance Company for a sum of Rs. 3,45,000/­. Therefore, upon deducting the depreciation amount from this amount he is entitled to get the value of his vehicle. Apart from this the complainant has submitted that from the said vehicle he was earning Rs. 500/­ per month (sic). Therefore, the compensation be granted to the complainant at the rate of Rs. 500/­ per day from the date of its picking up i.e. 19.12.04. In our opinion his income from the said jeep can be assumed as Rs. 300/­ and it is justifiable to grant him the said amount from the opposite party. Accordingly the complaint deserves to be allowed.”

Nothing is on record that any evidence was led on the

loss suffered because of not plying the vehicle

hypothecated and sold. Therefore, in absence of any cogent

evidence led, the District Forum was not justified in

determining and awarding the compensation/damages at

Rs. 300/­ per day. At the same time, it cannot be disputed

that the original complainant was able to pay the monthly

instalment and he was also the owner cum driver. It also

cannot be disputed that as the hypothecated vehicle was

detained/seized and thereafter, sold which was found to be

illegal, the complainant shall be entitled to the

3 compensation/loss suffered because of not plying of the

vehicle seized and sold illegally.

4. Instead of remanding the matter to the District Forum for

determining the loss/damages we deem it proper to award

reasonable loss/damages. It is reported that a sum of Rs.

3,45,000/­ has been deposited by the appellant which has

been withdrawn by the complainant in the year 2017. The

complainant cannot be paid the loss/damages per day till

the date of actual payment because of the prolonged

litigation. If the same is accepted in that case the

damages/compensation shall be much more than the

value of the vehicle.

5. In view of the above and for the reasons stated above the

present appeal is allowed in part. The order passed by the

District Forum confirmed up to the National Commission

ordering/awarding the compensation/damages at Rs.

300/­ per day from 19.12.2004 till the date of payment of

the actual amount is hereby modified and it is directed

that the appellant herein shall pay to the original

complainant the compensation/damages towards loss

suffered because of not plying of the vehicle at Rs. 5000/­

4 per month from the date of the picking up of the vehicle

i.e., 19.12.2004 till 31.12.2007. The appellant is directed

to pay the said amount with interest @ 7.5% from

December, 2004 till the actual payment within a period of

six weeks from today. The present appeal is allowed to the

aforesaid extent. In the facts and circumstances of the

case there shall be no order as to costs.

………………………………….J. [M.R. SHAH]

NEW DELHI; ………………………………….J. NOVEMBER 04, 2022 [M.M. SUNDRESH]

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