Recovery of financed vehicles under hire-purchase agreements must be conducted legally without force; consumer forums cannot alter contract terms but enforce them.

JUDGMENT

ALTAMAS KABIR, J.

1. Leave granted.

2. SLP(C)No.19314 of 2007, which is being heard along with SLP(C)No.3119 of 2008, SLP(C)Nos.9550, 10544, 11696 and 10547 of 2009, is directed against the judgment and order dated 27^th July, 2007, passed by the National Consumer Disputes Redressal Commission, hereinafter referred to as the “National Commission”. By the said order, the National Commission dismissed Revision Petition No.737 of 2005, filed by the appellant herein against the judgment and order dated 10^th March, 2005, passed by the State Commission, Delhi. By its order dated 27^th July, 2007, the National Commission modified the order of the State Commission and set aside the part of the order directing the Appellant to pay Rs.50,000/- on account of punitive damages and further directed the appellant to pay Rs.10,000/- as cost to the complainant Respondent.

3. From the materials on record, it appears that on 4^th April, 2000, at the initiative of the Respondent, a Hire-Purchase Agreement was entered into between the Appellant and the Respondent herein, to enable the Respondent to avail the benefit of hire-purchase in respect of a Maruti Omni Car. In accordance with the terms and conditions of the Agreement, the Appellant granted a hire-purchase facility to the Respondent for a sum of Rs.1,82,396/-, which was repayable, along with interest, in 60 equal monthly hire charges of Rs.4,604/- each. Clause 2.1 of the Hire-Purchase Agreement provides for payment of the hire charges in the manner stipulated in the Schedule to the Agreement and it also indicates that timely payment of the hire charges was the essence of the Agreement.

4. On the failure of the Respondent to pay the hire charges in terms of the repayment schedule, the Appellant sent a legal notice to the Respondent on 10^th October, 2002, recalling the entire hire- purchase facility. It further appears that as many as 26 cheques issued by the Respondent towards payment of the hire-charges were dishonoured on presentation. By the said legal notice, the Respondent was informed that she had failed to repay the hire charges according to the payment schedule and had defaulted in honouring her commitments towards repayment. She was requested to make payment of the total amount of Rs.1,31,299.44p. within 3 days from the date of receipt of the notice.

5. It appears that subsequently, pursuant to a request made by the Respondent, the Appellant, by its letter dated 10^th May, 2003, made a one-time offer of settlement for liquidating the outstanding dues of Rs.1,26,564.84p. for Rs.60,000/-, subject to the payment being made by the Respondent by 16^th May, 2003, in cash. It was also specifically mentioned in the offer that in the event the Respondent delayed in making payment of the said sum of Rs.60,000/- for whatever reason, the offer would stand voided and the Appellant would be entitled to claim from the Respondent the total dues as on date.

6. Thereafter, in keeping with the terms and conditions of the Hire-Purchase Agreement, the Appellant took possession of the financed vehicle and informed the concerned Police Station before and after taking possession thereof from the residence of the Respondent. According to the Appellant, an inventory sheet was also prepared, which was duly countersigned by the husband of the Respondent. It is the Appellant’s case that at the time of taking possession of the vehicle, six monthly instalments were overdue. On the same day, the Respondent’s husband wrote to the Appellant to extend the time for paying the amount which had been settled at Rs.60