Karnataka

StateCommission

A/1637/2017

Indiabulls Housing Finance Ltd - Complainant(s)

Versus

B.Ugraiah - Opp.Party(s)

FX & Co.

01 Mar 2024

ORDER

Date of Filing:28.07.2017

Date of Disposal :01.03.2024

 

BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)

 

DATED:01.03.2024

 

PRESENT

 

HON’BLE Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

 

Mr K BSANGANNANAVAR: JUDICIAL MEMBER

 

Mrs DIVYASHREE M:LADY MEMBER

 

 

APPEAL No.1637/2017

 

India Bulls Housing Finance Ltd.,
D.No.2904, 1stFloor, 1st Main,

New Muslim Hostel Commercial complex,

Saraswathipuram,

Mysuru -570009.

Rep. by its Officer Mr M B Chengappa
(By FX & Co., Advocate)                                                      Appellant

 

-Versus-

Mr B Ugraiah
S/o Late Bettaiah,

Managing Partner,

Hotel Ruchi the Prince,

No.1, 6th Main, 2nd cross,

Vinayakanagar,

Mysuru – 570012                                                                Respondent

(By Mr. P.B. Ajit, Advocate)

:ORDER:

 

Mr JUSTICE HULUVADI G RAMESH : PRESIDENT

 

1.       This Appeal is filed under Section 15 of Consumer Protection Act 1986 by the OP, aggrieved by the Order dated 23.06.2017 passed in Consumer Complaint No.501/2015 on the file of District Consumer Disputes Redressal Forum, Mysore(hereinafter referred to as the District Forum).

2.       Heard the arguments of the learned Counsels on record.  Perused the Impugned Order, grounds of Appeal and secured records from the District Forum.

3.       The District Forum after enquiring into the matter, allowed the Complaint in part and directed the OP to refund Rs.2,11,388/- with interest at 12%  p.a from the Date of the Order to the Complainant, within 60 days.  Further directed the OP to pay Rs.5,000/- towards deficiency in service & unfair trade practice, Rs.3,000/- towards damages for mental agony & hardship caused and  Rs.2,000/- towards cost of the litigation to the complainant  etc.,  Aggrieved by this Order, OP is in Appeal.

4.       The allegation of the Complainant is that OP levied interest at 14.5% p.a. instead of the agreed rate of interest at 11.5% p.a on the availed financial assistance for purchase of a residential site on 10.10.2012 without his knowledge and levied excess interest for the delayed payment of instalments, to the tune of Rs.11,498/-. Therefore, he approached the OP to close the loan account, for which, OP demanded a sum of Rs.3,17,619/- as pre-closure charges and accordingly, got closed the Loan Account by paying the amount, as demanded by the OP. 

5.       The stand taken by the OP is that during the pendency of the loan, the Complainant requested to foreclose the Loan and the details of payment to be made was furnished to the Complainant and a sum of Rs.97,08,036/- was paid by the Complainant, without any protest.   The foreclosure charges at 2.25% on outstanding principal amount collected based on the terms of the Agreement and as per the Policy Circular issued by the National Housing Bank only.

6.       The observation of the District Forum in Para 15 of its Impugned Order that ‘the Complainant relied on directions issued by the National Housing Bank, to all the Housing Finance Companies regarding non-levy of pre-closure charges on Housing Loans availed by its customers.  In view of the same, the collections of pre-closure charges towards the loan amount, by the OP is held as un-justifiable and the same amounts to deficiency in service’.

7.       It is not in dispute that the Complainant had availed financial assistance of Rs.1,02,97,191/- from OP, with an intension to purchase a Residential site on 10.10.2012 and he paid 144 instalments at Rs.1,32,146/- with floating rate of interest at 11.5% by executing the Loan Agreement agreeing to the Terms and Conditions.   When OP levied interest at 14.5% instead of the agreed rate of interest at 11.5% without the knowledge of the Complainant for collecting a sum to the tune of Rs.11,498/-.  However, OP demanded pre-closure charges of Loan Account of the Complainant and collected at the rate of 2.25% on outstanding principal amount, based on the Terms of the Agreement which is against the guidelines contained in the Circular issued by the National Housing Bank dated 03.09.2014 vide No.NHB (ND)/DRS/ Policy Circular 66/2014-15.   In the circumstances, the Impugned Order is just and proper.  However, the Order for payment of Rs.5,000/- towards deficiency in service & unfair trade practice, Rs.3,000/- towards damages for mental agony & hardship caused requires to be interfered with, by waiving of the same by modifying the Impugned Order would meet the ends of justice.  In the result, we proceed to pass the following

ORDER

          Appeal is allowed in part.  Consequently, Impugned Order dated 23.06.2017 passed in Consumer Complaint No.501/2015 on the file of District Consumer Disputes Redressal Forum, Mysore is herby modified and directed the OP to refund Rs.2,11,388/- with interest at 12%  p.a from date of the foreclosure of loan account, with cost of Rs.2,000/- to the Complainant within 30 days from the date of this Order.

The Statutory Deposit in this Appeal is directed to be transferred to the District Commission for further needful.

Return the LCR forthwith to the District Commission.

 

 

Send a copy of this Order to the District Commission, as well as to the parties concerned, immediately.

 

 

Lady Member                    Judicial Member                   President

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