Orissa

Sambalpur

CC/30/2021

Sunil Kumar Biswal - Complainant(s)

Versus

1.The Branch Manager, Orissa State Co-Operative Bank,Ltd - Opp.Party(s)

12 Sep 2022

ORDER

PRESIDENT, DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, SAMBALPUR

Consumer Case No- 30/2021

Present-Dr. Ramakanta Satapathy, President,

  Sri. Sadananda Tripathy, Member,

 

Sunil Kumar Biswal, Section Officer,

Office of the RDC(ND) Sambalpur,

At/P.O/City/Dist-Sambalpur.

Residing At:Qrt. No PWD, LD-03,

Commissioners Staff Colony,

Near Jail Chowk, Dist-Sambalpur                                 ...………..Complainant

                                                Versus

1. The Branch Manager,

Orissa State Co-Operative Bank,Ltd

Sambalpur Main Road, BhudhaRaja,,

Sambalpur.Odisha-768004.

2. The Branch Manager,

Orissa State Co-Operative Bank, Ltd.,,

          Bhubaneswar,Khurda, Odisha, Pin-751001                                                        

3. The Regional Director,

Reserve Bank of India,

Pandit Jawaharlal Nehru Marg,

Post Box No. 16, Bhubaneswar,

Khurda, Odisha ,Pin-751001                                …………...Opp.Parties

 

Counsels:-

1. For the Complainant                   :-         Self
2. For the O.P.1 & 2                         :-         Sri. R.P.Nanda
3. For the O.P. No.3                                    :-         Authorised officer Sri. Sunil Das

 

Date of filing:01.06.2021 Date of Hearing :26.07.2022, Date of Judgement : 12.09.2022

           Presented by Dr. Ramakanta Satapathy, PRESIDENT,

1. The case of the Complainant is that the Complainant availed a house-building loan of Rs. 4.00lakhs @10.25% P.A. interest from O.P.No.1 vide sanction order No. 439 dated 08.06.2009. The Complainant was to repay the installments @Rs. 5345/- in 120 equal monthly installments starting from June 2009 out of his salary. The D.D.O. of the R.D.C (N.D.), Sambalpur deducted installments from June 2009 to Feb. 2018 which covered the period March 2018.

During March 2018 when the Complainant approached the O.P. No.1 for ‘No dues certificate’ the O.P. No.1 supplied the loan account statement and outstanding dues up to 14.03.2018 was Rs. 83,004/-. On 16.03.2018 the dealing assistant of O.P. No.1 directed to deposit Rs. 1,15,063/- for NOC. The Complainant deposited Rs. 1,15,063/- on 20.03.2017 and bank supplied NOC. The Complainant made several correspondences to refund excess interest charges i.e. Rs. 32,059/-. The Bank has charged 12% interest in place of agreed 10.5% interest w.e.f. 28.04.2009, which amounts to unfair trade practice. The O.P. No.2 & 3 are administrative authorities of O.P. No.1accordingly made party in the complaint.

Being agrieved complaint was filed.

2. The O.P. No.1 & 2 in their version admitted the loan granted @10.5% interest but denied the excessive charge of 12% interest from Complainant. The Complainant  has paid 120 installments (monthly) of Rs. 5345/- with principal and interest and the total principal and interest payable was Rs. 6,41,400/-. The installment stated repayment from July 2009 which was paid in June 2009 was also admitted. The salary was deducted from salary and remitted to loan a/c is also admitted. When the complainant sort for NOC up to 14.03.2018 loan A/C statement supplied and outstanding dues was Rs. 83,004/-. The O.P. No.1 demanded Rs. 1,15,063/- is admitted but denied the forcible payment. The O.P. No.1 not collected excess interest of Rs. 32,059/- from the complainant. The Bank disbursed loan of Rs. 4.00lakhs on 28.04.2009 and recovered the final payment on 20.03.2018 and submitted daily interest calculation sheet of interest @10.25% P.A. w.e.f. 28.04.2009 to 20.03.2018.

When the Complainant demanded refund of Rs. 32,059/- from the O.P. No.1, the Bank refunded Rs. 22,085/- by pay order No. 307212dated 08.10.2018 due to wrong calculation bythe Bank although the Complainant is not entitled for.

The O.P. No.1 & 2 due to their mistake have not entered interest on the loan amount for the month of March-2010, October-2010, July-2011, August-2011. October-2011, December-2011, March-2012, May-2012, August-2012, October-2012, and December-2012. The O.P. No.1 Bank had charged interest on the loan amount @P.A. due to mistake and after calculation @10.25% P.A. and after deduction of interest to be paid by the Complainant @12% P.A., the final interest amount of Rs. 32,059/- was added to the loan account of the Complainant and for which demanded Rs. 1,15,063 from the Complainant at the time of final payment on 20.03.2018.

The O.P. No.1 & 2 paid LIC Premium of Rs. 10,332/- on 22.06.2009 to cover the life risk of the complainant during the loan period to cover the risk of unpaid loan and pay the same to the Bank in case of death of Complainant during the pendency of loan repayment.

There is no deficiency on the part of the O.P. No.1 & 2 and unfair trade practice, the complaint is liable to be dismissed. This is the submission of O.P. No.1 & 2.

3. The O.P. No.3 in this case is a proforma O.P. The O.P. submitted that the minimum lending rate for all co-operative Banks have been withdrawn. The Co-operative Banks are free to determine their lending rates taking into account their cost of funds transaction cost etc. with the approval of  their Managing committee subject to adherence of transparency. This direction was made in superssion of directive RPCD No. R.F. Dir B.C. 51/107.38 . 02/1994-95 dated Oct. 17, 1994 read with Directive RPCD No. Dir. B.C. 62/07.38.02/94-95 dated Nov 2,1994.

The O.P. No.3 is no way connected with the transaction made by the Complaint and O.P. No.1 & 2 and will not come under the permit of the Consumer Protection Act, 2019.

4. Perused the documents filed by the parties and the following issues are framed:
103606587.  

1. Whether the O.P. No.1 & 2 charged excess interest from the Complainant at the time of repayment?
2. Are the O.P.No.1 & 2 deficient in their service?
3. What relief the Complainant is entitled to get?

Issue No.1 Whether the O.P. No.1 & 2 charged excess interest from the Complainant at the time of repayment?

The O.P No 1&2 the Bank denied as per para-14 not charged  interest @12% PA and the mentioned that state of interest at the top of the Account Statement is 12% due to some mistake by the Bank. The O.Ps1&2 (Bank) is auditable wings. The loan is sanctioned for the year 2009 and loan closing date 20.3.2018. In this 9 years the Bank has not been audited the above loan account. The mistake is not rectified since 2009 to 2018.

However, on perusal of the loan account statement filed by ops 1&2 Annexure 1to 4 the part of interest is mismatched. So it is clear that O.Ps have collected excess interest from the EMI deposited by the Compliant

Further it is ascertained that O.Ps 1&2 has charged interest on dated 22.6.2009 a sum of Rs. 10,332/- which was paid by the bank to the LIC of India on dated 22.7.2009 after sanction of loan amount on dated 28.4.2009. The O.Ps 1&2 Bank has mentioned in their Written version para21 that the LIC premium of Rs. 10332 is paid on dated 22.7.2008 to LIC to cover the life risk of the Complainant during the loan period to cover the risk of unpaid loan and pay the same to the bank in case of death of the Complainant during the pendency of loan repayment for a period of 10 years. The said amount is recovered @ 9.5% of interest from the 22.6.2008.

On perusal of three annexure i.e 1,3 &4  filed by Ops 1&2 are not matching and so many discrepancy arose. The annexure No.3&4 is a computerised statement as per setting by the Bank authority and approved by bank authority. It is clearly mentioned that 12 % interest has been deducted by the O.Ps1&2 from loan amount i.e 4,00,000.00 and LIC premium i.e Rs.10,332.00.

Further the O.Ps 1&2 deposited LIC premium to the LIC authority on dated 22.7.2009 and kept the same amount in their hand by the bank for a period of one month. But interest has been calculated from 22.6.2009 at the rate of 12% instead of 9.5%. Which clearly indicates that O.Ps 1&2 has collected excess interest from complainant.

Further it is ascertained that as per bank statement closing balance on dated 14.3.20018 i.e Rs. 83,004. In this regards the O.Ps 1&2 forced the complainant to deposit a sum of Rs. 1,15,063 toward the foreclosure of the loan amount. The Complainant deposited a sum of Rs. 1,15,063 towards principal Rs. 85,004 and interest Rs. 32,059/-  on dated 20.3.2018, which is clearly indicates that O.Ps 1&2 has collected excess interest from complainant.

After, several correspondence by the Complainant to the O.P 1&2. Then O.Ps 1&2 returned Rs. 22,085/- on dated 8.10.2018 after 6 months without any interest. Which clearly indicates that O.Ps 1&2 has collected excess interest from complainant  at the rate of 12%  from a sum of Rs.4,00,000/-from 28.04.2009 and Rs.10332/- from 22.6.2009  instead of 10.25 and 9.5 respectively intentionally and malafied intention for harassing to the complainant. Due to wrong procedure adopted by the O.Ps 1&2 the present Complainant is harassed and lost financially also. The issue is answered against the O.Ps No.1 & 2.

Issue No.2 Are the O.P 1&2 deficient in the service?

          In this case O.Ps 1 & 2 not followed the guide line of R.B.I and loan term condition of the loan sanctioned order 439 dated 8.6.2009. The O.Ps 1&2 collected excess rate of interest from the complainant which clearly shows that as per Bank statement of O.Ps 1&2, which was filed by the both parties. The said document is not disputed. The O.Ps 1&2 sanctioned Rs. 4,00,000/- towards loan at the rate of 10.25% P.A and LIC premium amount Rs. 10,332/- @9.5% P.A. on the above two amount the rate of interest is different .As per calculation sheets and bank statement filed by the O.Ps 1&2is miss matching  and adopted a wrong procedure . The O.Ps 1&2 collected excess amount from the complainant i.e way of

Instalment  amount	No. of instalment	Total amount
5345	120	6,41,400

 

Instalment  amount	No. of instalment already paid	Total amount  already paid till  14.3.2018
5345	105	5,61,225

 

Instalment  amount	No. of instalment balance to be paid	Total amount  balance to be paid
5345	15	80,175

 

As per above statement the complainant is liable to pay  balance a sum of Rs. 80,175/ till 20.3.2018- as per loan agreement  08.6.2009..But O.Ps1&2 collected a sum of Rs. 1,15,063/- from complainant..The excess amount of Rs. 34,888/- has already been collected by O.P 1&2  from complainant on dated 20.3.2018. and out of said amount a sum of Rs 22,085/- has already been paid to complainant on dated  8.10.2018 after several request by the Complainant.. The rest amount of Rs. 12,803/- has not been returned till date, which amount to deficiencies in service on the part of O.Ps 1&2. Further O.Ps 1&2 has collected a sum of Rs. 10.332/- from the complainant towards LIC premium on dated 22.6.2008 and the said amount is recovered in 12% interest P.A from the complainant. As per guide of RBI, the bank has not collected any amount without the knowledge of the complainant.  In this case the  O.Ps 1&2 has sanctioned a sum of Rs. 10332/- toward  payment of LIC premium to secure the loan amount of the bank. In case of death of complainant the said amount is recoverable with principal and interest @ 9.5%  P.A.. But O.P 1&2 recovered  the said amount with principal and interest  @12% P.A and not handed over the Insurance policy document to the Complainant.. Which is clearly coming under deficiencies in service on the part of O.P 1&2 who collected 10,332/- and charged interest and not supplied the Insurance policy documents to the complainant. Without any guide line  or without any information to the complainant. In this regards the O,Ps have not submitted any documents to this commission i.e. the complainant purchased Insurance policy for coverage of loan account..

So Rs.12,803, and 10,332/- has been collected excess from the complainant by the O.P.1 &2. The issue is answered accordingly.

Issue No.3 What relief the Complainant is entitled to get?

From the supra discussion it is clear that the Complainant is entitled for the relief claimed for. The practice of the O.P. No.1 & 2 are unfair trade practice.

Accordingly it is ordered:

 

ORDER

The complaint is allowed on contest against the O.P No.1 & 2. The O.P No.1 & 2 are directed to pay a sum of  Rs.12,803, and 10,332/-          with 10.25% interest P.A. from 20.03.2018 within one month failing which the amount will carry 12.5% P.A. till realisation. Further the O.Ps are directed to pay compensation of Rs. 50,000/- and litigation expenses of Rs. 10,000/-

          For unfair trade practice the O.Ps are liable to pay Rs. 50,000/- which will be deposited in State Consumer welfare fund within one month.

          Order pronounced on 12^th day of September, 2022.

Supply free copies to the parties.