Dealer guilty of unfair trade practice when gets vehicle insured when not even sold or given registration number

(North West District)
CSC-Block, Shalimar Bagh, Delhi-110088.

Case No.1514/2007

1. Sh. B.L. Gupta
S/o Late Sh. B.D. Gupta
176, Shakti Apartment,
Ashok Vihar-III,
2. Ms. Deepika Gupta
D/o Sh. B.L. Gupta
176, Shakti Apartment,
Ashok Vihar-III,



M/s Himgiri Cars Private Ltd.
B-99, Wazirpur Industrial Area,
Delhi-110052 ……….Opposite Party




Present complaint has been filed by two complainants, both are father and daughter. Complainant No.1 had booked Hyundai Santro Care on behalf of complainant No.1 with OP by payment entire ex-showroom price of Rs.3,71,743/- through Cheque No.271060 drawn on HDFC bank. Subsequently the complainant decided not to buy the car and approached OP on 27.06.2007 itself, the next day after booking and cancelled the booking which was agreed by the staff of OP. The cheque was given to the OP against booking as above-said was cleared on 25.6.2007 itself, i.e. on the date of booking. Complainant thereafter requested number of times to refund the money but excuses were made on pretext or the other. OP then advised complainant to give in writing about cancellation of the booking and accordingly complainant gave a letter dated 21.8.2007 requesting cancellation of the booking and refund of the money so paid. Still the refund was not made and excuses were made that the signatories are not available for issuing the cheque etc. After about two months, OP delivered a cheque to the complainant after deducting Rs.16,134/- on 27.8.2007 and it was informed when asked that various charges on account of insurance premium and cancellation had been deducted. OP filed insurance cover dated 29.6.2007 of National Insurance Co. Ltd. for a premium of Rs.11,634/-. The car was never purchased and deducting amount against insurance premium was illegal. With this prayer, the complainant comes before this Forum for directing OP to refund an amount of Rs.16,134/- along with interest on the principal amount of Rs.3,71,743/- from 26.6.2007 till 27.8.2007. He also asked for compensation of Rs.50,000/-.
OP appeared before this forum after receiving the notice and contested the complaint by rebutting the allegations put forth by the complainants. It is alleged by the OP that the complainants want to take benefit of their own wrong. It is stated that the car was billed in the name of complainant No.2 vide invoice letter dated 29.6.2007 and the car was made ready for delivery and was insured with National Insurance Co. but complainants never came to collect the car and when they were contacted telephonically they avoided to come on one or the other pretext and finally on 11.08.2007, they asked for their money back and expressed the problem in taking the delivery of the car. It is further pin-pointed by the OP that in spite of number of called made to the complainant he did not visit the office of the OP till August, 2007. All the contents of complaint are wrong and misleading. Refund of the booking amount was asked only on 11.8.2007 and a cheque for an amount of Rs.3,55,607/- was issued to the complainant after completing the formalities in due course of time. It is further stated that Rs.16,134/- were deducted on account of insurance being paid to the insurance company and handling charges. OP states that everything has been done in due course and as per the procedure and hence the complaint is not maintainable.
Both the parties have led their affidavits and written arguments supporting their pleadings. The complainant has also filed rejoinder.
While going through the documents by both the parties, it has been observed that request of cancellation by the complainant in writing has been made on 11.8.2007 and there is no other document which could establish that any cancellation of booking of car was made prior to that. We have also checked from the rejoinder filed by the complainant wherein he admits that OP had deducted an amount of Rs.16,134/- towards insurance premium and other various charges. Complainant stated that he had not purchased a car and hence the question of its insurance does not arise. The insurance was managed by OP and it was their duty and obligation to get the refund. Complainant is not a party to the insurance contract and hence is not liable to pay the insurance amount against the vehicle which does not belong to the complainant.
We have also gone through the written submissions made by the complainant wherein he admits that insurance cover dated 29.6.2007 of National Insurance Co. Ltd. with a premium of Rs.11,634/- was shown to the complainant and complainant was advised to recover the said amount from the insurance company. Complainant again insists that no car was purchased by the complainant for any insurance premium to be charges and no invoice for the car was raised by the OP. On the other hand, we have checked the motor vehicle insurance cover note which is issued on 29.6.2007 by charging Rs.11,634/- towards premium wherein all the details of the car had been given like make, type of body, year of manufacturing, chasis number, engine number etc. but it is important to note that there is no vehicle number mentioned in the cover note and it is written as ‘New Car’. No policy can be issued till the correct number of vehicle is given and in view of this even this cover note is incomplete. Though OP is advised take refund of the premium amount from the insurance company but we find complainant correct in his arguments that no car was ever purchased by him and even no number has been given in the insurance cover note. OP has not even enclosed the invoice which stated as issued in the name of complainant on 26.5.2007. This convinces us that complainant must have verbally requested for cancellation and it was known to the OP and OP has acted in a very unfair manner. We, therefore, find OP deficient in providing fair services to the complainant and even if cancellation has been done in August, 2007, no number has been allotted to the complainant and this cover not was issued without number of the vehicle is also of no meaning. Hence had it been a numbered cover note, we could have made complaint responsible for getting the refund from the insurance company but under these circumstances, it is the duty of the OP to get insurance cover note cancelled and refund back the amount to the complainant. We, therefore, direct the OP to pay entire amount of Rs.16,134/- to the complainant along with compensation to the tune of Rs.20,000/- and Rs.7,000/- towards cost of litigation.
If OP fail to comply with the order within 30 days, the complainant may approach this Forum u/s 27 of the Consumer Protection Act.
Announced on…………………….



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