Haryana

StateCommission

A/828/2015

LIC HOUSING FINANCE CO. - Complainant(s)

Versus

ANURAG GARG - Opp.Party(s)

RECEIVED FROM NCDRC,NEW DELHI

07 Dec 2015

ORDER

STATE CONSUMER DISPUTES REDRESSAL COMMISSION HARYANA, PANCHKULA

                                                 

Remand Appeal No:828 of 2015

In First Appeal No.1205 of 2012

Date of Instt:18.10.12/01.10.2015

   Date of Decision: 07.12.2015

 

L.I.C. Housing Finance Limited Faridabad, Rama Palace, Neelam Flyover, Ajronda Chowk, Faridabad, Haryana, through Shri Rajeev Sethi, Area Manager.

                                      Appellant/Opposite Party

Versus

1.      Anuj Garg s/o Sh. Arjun Kumar Garg, Resident of House No.65-R/8, New Colony, Palwal (Haryana).

2.      Ms. Rekha Garg w/o Sh. Arjun Kumar Garg, Resident of 65-R/8, New Colony, Palwal (Haryana)

                                      Respondents/Opposite Parties

 

CORAM:             Hon’ble Mr. Justice Nawab Singh, President.

                             Shri B.M. Bedi, Judicial Member.

                             Shri Diwan Singh Chauhan, Member   

 

Argued by:                    Shri Sumit Batra, Advocate for appellant.

Shri A.K. Garg-father of Anuj Garg-respondent/complainant No.1.

 

                                                   O R D E R

 

B.M. BEDI, JUDICIAL MEMBER

 

This appeal has been preferred against the order dated 09.07.2012 passed by District Consumer Disputes Redressal Forum, Faridabad (for short ‘the District Forum’) in Consumer Complaint No.652 of 2010.

2.      Anuj Garg and his mother Rekha Garg-complainants/respondents, applied for housing loan of Rs.10.00 lacs to LIC Housing Finance Limited-opposite party/appellant, vide application Annexure A-VII. The loan was sanctioned vide letter dated 13.07.2009 (Annexure A-V). The complainants accepted the sanction letter alongwith its terms and conditions annexed thereto. As per Clause 12 of the conditions, the sanction was to remain open for three months which was subject to payment of upfront fees (processing fee). The complainants were required to furnish certain necessary documents for obtaining loan. They failed to abide by the terms and conditions of the sanction letter of loan as they did not deposit the documents and even the documents deposited were not as per the requirement. Accordingly, the opposite parties cancelled the sanction of loan. Hence, complaint under Section 12 of the Consumer Protection Act, 1986 was filed before the District Forum.

3.      The opposite parties contested complaint by filing reply stating therein that since the complainants had not furnished the required documents for releasing the loan and for that reason the loan was cancelled. The complainants were not entitled for refund of the processing fee as per the terms and conditions of the sanction letter. It was prayed that the complaint be dismissed.

4.      On appraisal of pleadings of the parties and the evidence brought on the record, the District Forum allowed complaint and directed the opposite party to pay Rs.1.00 lac to the complainants towards the refund of process fee, interest thereon, mental harassment and litigation expenses.  Hence, the instant appeal.

5.      It is admitted case of the parties that the complainants had applied to the opposite party/appellant for raising housing loan vide application Annexure A-VII whereby an undertaking was given by the complainants accepting the terms and conditions of the opposite party. The relevant part of the undertaking with respect to non-refundable upfront fee is as under:-

“…………..I/We understand that the Upfront Fee is not refundable under any circumstances, and the Loan Sanction or Rejection is at the Sole discretion of LICHFL, even after payment of such Fee. I/We am/are aware that the Original Title Deeds (including the Chain of Title) in respect of the Property standing in my/our name will have to be deposited to LICHFL as Security for the Loan in purchase cases, I/we am/are aware that the Loan Cheque will be given in the favour of the Vendor only and I/we agree to this condition.”

6.      Besides, the loan offer letter Annexure A-V also contain condition No.12, which reads as under:-

“12.   The offer under the sanction letter may be kept open at the sole discretion of LIC Housing Finance Limited upto 3 months from the date hereof and subject to commitment/upfront fees being paid within 30 days from the date of the sanction letter by the Borrower.”

7.      In view of the above, it is crystal clear that LIC Housing Finance Limited/appellant-opposite party was in its own discretion to release the loan subject to fulfillment of the requirements of submission of the necessary documents by the complainants, failing which the sanction letter was to be treated as null and void.

8.      Indisputably, the loan was rejected as the complainants did not deposit the required documents and even the documents which were submitted, were not as per the requirements.  Both the parties have relied upon letter dated 23.09.2009 vide which the documents were purported to have been deposited by the complainants. A perusal of the said letter shows that the complainants only supplied the receipts of payment made by them to the builder totaling 10 and did not supply the necessary material documents such as three cheques of HDFC Bank, one cheque of Axis Bank, Allotment Card, Builder-Buyer Agreement, Tripartite Agreement, Payment Receipt, Permission to Mortgage, NOC and ECS Certificate from HDFC Bank. Even the receipts were supplied on 22.10.2009 i.e. after expiry of 90 days upto which the sanction was to remain open. Loan was sanctioned vide letter Annexure/A-V on 13.07.2009. When the complainants themselves violated the terms of the sanction letter, they could not ask for the refund of the Upfront Fee. The District Forum fell in error in allowing the complaint and as such the impugned order cannot sustain.

9.      For the reasons recorded above, the appeal is accepted, the impugned order is set aside and the complaint is dismissed.

 

Announced 07.12.2015

(Diwan Singh Chauhan) Member

(B.M. Bedi) Judicial Member

(Nawab Singh) President

CL