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Journalism of Courage
NEW DELHI, Apr 1: A Delhi consumer court has penalised auto major Premier Automobiles Limitted (PAL) for not returning a customer’s deposit amount on cancellation of a Fiat-Uno’ booking directing it to pay penal interest.Delhi consumer disputes redressal forum-VI ordered PAL to refund the booking amount of Rs 21,000 to a complainant with nine per cent interest from the date of booking to the date of cancellation and a further interest of 15 per cent thereafter till actual realisation.
"The act of PAL in not refunding the deposit amount within the prescribed period constitutes deficiency in service," forum president S P Saberwal and members Dr Sushma Yadav and R C Nigam said in a recent judgement.PAL, however, maintained that "in view of contractual rate of interest agreed, complainant is not entitled to interest beyond the agreed rates.
Drawing on an earlier case filed by another complainant against PAL, the court said since the firm had not repaid the amount within 60 days of cancellation, thecomplainant’s request for compensation was valid, rejecting PAL’s contention.
The apex consumer court, National Consumer Disputes Redressal Commission, while hearing a similar case against PAL in 1995 had also supported the claim for compensation by complainants for non-delivery of Uno car and non-refund of deposit amount.
The complainant, Krishan Lal Chawla, deposited Rs 21,000 as booking amount for a Fiat-Uno’ car with PAL on April 24, 1996 and later cancelled it on September 24, 1996 asking PAL to refund his money. However, despite several reminders, the amount was not refunded to the complainant on which he approached the consumer court for relief.
The court also directed PAL to pay a litigation cost of Rs 1000 to the complainant. It also directed PAL to pay the entire amount along with interest within 60 days of the order failing which the complainant could file an application under Section 27 of the Consumer Protection Act to ensure compliance of the order.
