Tata Motor Fin slammed for recovery

“TMF has acted in a most callous manner,and also negligently and against agreed terms and conditions of loan,” the panel headed by President C K Chaturvedi said.

“Once the cheque was allegedly lost and re-cashed by TMF and complainant had deposited the cash instalment,where was the need for TMF to act rashly in issuing a legal notice and also encashing five post dated cheques at one time,causing anxiety to the complainant and harassment to him,” it added.

The forum gave the order on a plea by Delhi resident Jag Mohan Bhardwaj who had availed of a car loan from TMF.

He alleged that one of the cheques of Rs 4,950,deposited by him towards his equated monthly installments (EMIs) was lost by the company in transit and he had to pay the amount in cash on being asked by the company.

The company,however,did not only encash the allegedly lost cheque but also five post dated cheques issued by him earlier,all in one month,causing financial problems,Bhardwaj had said.

The complainant had contended that instead of returning the amount of the “lost” post dated cheque or the money deposited by him in cash,TMF sent him a legal notice demanding Rs 5,950 as over due amount.

TMF,in its reply,had denied causing any harassment to Bhardwaj even as it accepted the facts of the case.

The forum directed TMF to return the “excess recoveries” made from Bhardwaj and “to pay him Rs 15,000 for harassment caused due to negligence” of the company and Rs 5,000 toward litigation expenses.

The finance company was also directed to issue a no-objection certificate if loan has been repaid.