New Delhi, July 5
A Delhi consumer court today ordered Citi Bank to pay a compensation cost of Rs 10,000 to its client for denying him a no-objection certificate (NOC) for a financed vehicle - which the client wanted to sell - despite his having cleared loan dues for the same.
New Delhi District Consumer Disputes Redressal Forum president L. C. Jain and member Janak Juneja said in the order that “denial of NOC by Citi Bank to the complainant is an act of deficiency in service.”
Acting on the plea of a complainant Ashok Kumar, a resident of East Delhi’s Laxmi Nagar, that he had purchased a vehicle in August, 1997, under a hypothecation agreement with Citi Bank for two years. Mr Kumar said he paid all 24 installments and alleged he could not sell the vehicle for want of NOC (form number 35) from Citi Bank.
Despite his repayment the bank deliberately did not issue the NOC and harassed him. Mr Kumar also claimed compensation of Rs 1,57,420, including Rs 1lakh which was for the reduction in the value of the vehicle since June 1999 when he wanted to sell it. Citi Bank said as its name was entered in the RC book as the lien holder of the vehicle till the complete repayment of the loan it required the book to delete its name to remove further lien on the vehicle. But despite repeated reminders, the complainant did not furnish the book, the bank contended.
