SHIVAMOGGA: The Shivamogga District Consumer Disputes Redressal Commission has ruled that HDB Financial Services acted illegally by seizing and auctioning a JCB without issuing notice to its owner, and ordered them to compensate him with Rs 2.10 lakh for mental agony. The Commission also ordered the company to return the excavator.
The commission, led by President T Shivanna and Member B D Yogananda Bhandya, issued its order recently, directing the financier to accept two pending EMIs from complainant Nagaraj of Gondichattanahalli and return the vehicle within 45 days. If they fail, they must pay Rs 2,000 per day until the JCB is given back.
The bench also ordered Rs 2,10,000 in compensation for mental distress, damages and litigation costs, with 12 per cent annual interest if not paid on time. The complaint against the Regional Transport Office, named as the third respondent, was dismissed.
According to the complaint, Nagaraj had taken a Rs 31,65,625 loan to purchase the JCB for his livelihood and had been paying instalments regularly. He defaulted on two EMIs due to personal reasons but assured repayment by October 2024. However, on October 14, 2024, representatives of HDB Financial Services seized the JCB while it was in use in Shivamogga. Despite paying Rs 50,000 towards his dues, Nagaraj was informed in December that the vehicle had been auctioned.
The commission found that the financier failed to provide proof of issuing a mandatory notice before seizing and selling the machine, ruling the act a deficiency in service.