Panipat District Commission Holds RBL Bank Liable For Failure To Return Seized Tractor Despite Receiving Outstanding Payment

Brief Facts:

The Complainant purchased a Sonalika DI-50 tractor from M/s Yogesh Tractors which was partly financed by RBL Bank Ltd. The Complainant regularly paid instalments until facing financial difficulties, causing him to miss payments in April and May 2023. Consequently, on May 25, 2023, officials from the bank seized the tractor from the Complainant's residence. Seeking resolution, the Complainant lodged a complaint with the Police Authorities which resulted in an agreement between the Complainant and the bank that the tractor would be returned upon payment of the outstanding instalments. Subsequently, the Complainant made payments totalling Rs.27,165/- in May and June 2023. Despite fulfilling the payment obligations, the bank refused to return the tractor. Feeling aggrieved, the Complainant approached the District Consumer Disputes Redressal Commission, Panipat and filed a consumer complaint against the bank.

The bank didn't appear before the District Commission for the proceedings.

Observations by the District Commission:

The District Commission noted that the Complainant made regular instalment payments but his financial difficulties led to the inability to pay instalments in April and May 2023. Further, it held that despite having an agreement with the Complainant, the bank failed to return the tractor to the Complainant. Further, the absence of the bank during the proceedings resulted in the Complainant's claim unchallenged and unrebutted. Therefore, the District Commission held the bank liable for deficiency in services for failure to honour the agreement.

Consequently, the District Commission directed the bank to release the tractor to the Complainant forthwith in the same condition as when it was taken into possession. However, the Complainant was instructed to deposit any outstanding balance to the bank within one month of the order. Additionally, the bank was ordered to pay Rs.5,000/- as compensation to the Complainant for the inconvenience caused to him.

Case Title: Sonu vs RBL Bank Ltd and anr.