D.O.F. 24.06.2006
D.O.O. 27.12.2011
IN THE CONSUMER DISPUTES REDRESSAL FORUM KANNUR
Present: Sri.K.Gopalan : President
K.P.Preethakumari : Member
Smt.M.D.Jessy : Member
Dated this the 27th day of December, 2011.
C.C.No.141/2006
T. Ramakrishnan,
Surya, : Complainant
Chettipeedika,
Kannur-4
(Rep. by Adv. Jayalakshmi K.)
1. The Branch Manager,
Kannur District Co-operative Bank Ltd.,
Payyannur Evening Branch,
Payyannur. : Opposite Parties
2. The Kannur District Co-operative Bank Ltd.,
Represented by its General Manager,
Head Office, Kannur-1
(Both rep. by Adv. M. Preman)
O R D E R
Sri. K. Gopalan, President
This is a complaint filed under Section 12 of Consumer Protection Act for an order directing opposite parties to refund ` 35,500 with interest at the rate of 9% per annum with a sum of ` 30,000 as compensation together with cost of this litigation.
The case of the complainant in brief is as follows : Opposite party/Bank sanctioned a housing loan for ` 2,30,000 @ 10% interest in favour of complainant and first instalment ` 69,000 was disbursed on 21.2.97. This amount was completely issued for constructing the compound wall. Though subsequent payment was requested but opposite party did not release it. Then repayment was started. But complainant could not continue repayment due to financial problems. There were several schemes including one time settlement in one instalment. Opposite party did not give complainant any opportunity. When the complainant enquired about the balance outstanding, his figure informed by the opposite parties were so high. They did not give him details even after several requests. Atlast complainant was constrained to close the loan paying a very huge amount. Opposite parties calculated interest at a very high rate. They have also charged very high rate of penal interest and compounded penal interest also. They were not allowed to enjoy the benefits declared by Govt. of Kerala and opposite party charged more than ` 35,000 as excess interest which the complainant is entitled to get refunded with compensation of ` 30,000. The opposite parties very much humiliated the complainant and his family members and threatened the complainant, which caused lot of mental agony. They haven’t reasonably responded to the registered letter sent by the complainant to refund the excess amount. Hence this complaint.
Pursuant to the notice opposite parties entered appearance and filed version denying the main allegations of the complainant. Complainant was given loan as SPL.H.L No:69/97 strictly upon the terms and conditions for constructing the House. The interest rate was 21% per annum and in the case of default 2% penial interest also will be charged. Complainant availed the first instalment of the loan on 21.02.1997 for an amount of ` 69,000. Complainant did not started the construction of the house but constructed compound wall. He did not applied for the approval of the second instalment. As per the terms complainant had to complete the foundation and basement of the house with the first instalment. But he did not complete foundation. He did not approached for remaining instalments. The opposite party is working under the strict guidelines of NABARD and RBI. Complainant being a senior advocate and having much experience, is well aware of the banking affairs. This opposite party charged interest only as per the terms. Opposite party is keeping true and correct statement of account. No excess interest had been charged. The interest rate was 21%. It was revised to 16% from 01.01.2002. Thereafter 12% interest was calculated as per new settlement scheme with effect from 15.07.05. As per this scheme the complainant was granted an amount of ` 6,900 being the reduction of interest. But by mistake due to change of the account from the manual system to computer an amount of ` 3,056 had to be repaid by the complainant. Opposite party filed petition before Joint Registrar Court to realize the amount and the same decreed. His notice was promptly replied. There is no deficiency in the service of opposite party. Hence to dismiss the complaint.
On the above pleadings the following issues have been taken for consideration.
1. Whether there is any deficiency in service on the part of opposite party?
2. Whether the complainant is entitled for the relief as prayed for?
3. Relief and cost?
The evidence consists of Ext.A1 to A3 on the side of complainant and Ext.B1 to B7 on the side of opposite party.
Issue 1 to 3 :
Admittedly complainant applied for a housing loan of ` 2,30,000. Opposite party sanctioned this loan. ` 69,000 released on 21.02.97 as first instalment. Case of the complainant is that the amount of first instalment was completely used for constructing the compound wall. Subsequent payment was requested but not released. Then repay;ment was started. He could not continue repayment due to financial problems. Further case of the complainant is that the opposite party did not allowed the complainant to close the loan utilizing the convenience of one time settlement and to have the benefit of declared schemes by the Govt. of Kerala and RBI. Opposite party charged more than ` 35,000 as excess interest. It is also alleged that complainant and his family members were threatened and humiliated. Opposite party contended that complainant did not started construction of house with the first instalment. As per the terms and conditions of loan complainant has to complete foundation and basement of the house with that amount. He had not applied for the approval of the second instalment. The interest rate of the loan was 21% and it was revised to 16% from 01.01.2002. Thereafter as per new settlement scheme with effect from 15.07.05 the interest was calculated as ` 1290. ` 6900 was granted as per this scheme, being the reduction of interest. But by mistake due to change of account from the manual system to computer an amount of 3056 had to be repaid by the complainant and opposite party obtained decree from JRC to realize the amount.
Ext.A1 is the legal notice with same allegations raised in the complaint. Ext.A2 is the reply sent by opposite party denying the allegations of complainant. Ext.A3 is the miscellaneous receipt. Complainant has not produced any other evidence to prove the allegations of complainant.
The opposite party has produced a cheque for ` 14,850 being the interest and the amount deposited by the complainant before the bank. As per Ext.A3 complainant paid ` 10,000. Opposite party has taken the contention that ` 14,850 includes ` 10,000 paid by complainant as per Ext.A3 and ` 1,600 interest j@ 16% from 01.12.2004 to 30.11.2005 and ` 3250 interest @ 7.5% which is the prevailing interest rate for FD as on 01.12.2005. If that be so the amount comes to ` 14,850 which has already been received by complainant.
It cannot be ignored the fact that several attempts has been made for the settlement of the dispute and opposite party has agreed to pay the amount so as to settle the amount. But complainant demanded a further amount of ` 2,533 on the ground of interest variation. Learned Counsel for the complainant argued that opposite party infact liable to pay ` 17,970 and after deducting ` 14,850 opposite party has to pay a balance amount of ` 3,120. But at the same time, the calculation filed by the complainant on 19.01.2011 demands to pay ` 2,538. These calculations has not been supported by proved facts. Opposite has paid the amount depending up on a calculation which has not been challenged by opposite party. So in the absence of evidence it is not possible to conclude opposite party is liable to pay more amount. Complainant was not able to succeed in proving the allegations and establish his case placing sufficient evidence. Thus issues 1 to 3 are found against complaint.
In the result, the complaint is dismissed.
No order as to costs.
Sd/- Sd/- Sd/-
President Member Member
APPENDIX
Exhibits for the Complainant
A1. Copy of lawyer notice dated 15.04.2006.
A2. Reply letter dated 11.05.2006.
A3. Miscellaneous receipt dated 26.11.04.
Exhibits for the opposite parties
B1. Copy of promissory note.
B2. Letter from bank dated 13.02.97.
B3. Copy of housing loan ledger.
B4. Copy of housing loan ledger.
B5. Copy of loan ledger.
B6. Copy of Letter dated 01.10.05.
B7. Copy of Letter dated 15.03.04
Witness examined for the complainant
Nil
Witness examined for opposite party
Nil
/forwarded by order/
SENIOR SUPERINTENDENT
