BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, PONDICHERRY

                                         C.C.No.51/2016

Dated this the 10^th day of May 2018

(Date of Institution: 21.12.2016)

Anebajagane, son of Govindaradjou                    

17, Sathani Street, Krishnasamy Garden       

Kuyavarpalayam, Pondicherry – 605 013.

….     Complainant

Vs

1. Bajaj Finance Limited (Personal Loan)       

    Rep. by its Branch Manager             

    Easwaran Koil Street,                 

    Pondicherry – 13.  

2. Bajaj Finance Limited rep. by its    

    Manager                            

    Old Pune-Mumbai Highway,

    Akurdi, Pune – 411 035. 

                                       ….     Opposite Parties

BEFORE:

          THIRU.A.ASOKAN, B.A., B.L.,

          PRESIDENT 

Thiru V.V. STEEPHEN, B.A., LL.B., 

MEMBER

Tmt. D. KAVITHA, B.A., LL.B., 

MEMBER

FOR THE COMPLAINANT:  Thiru R. Ravikumar, Advocate        

FOR THE OPPOSITE PARTIES:  Ms. N. Anitha, Advocate

O R  D  E  R

(by Tmt. D. Kavitha, Member)

              This is a complaint filed by the complainant u/s 12 (1) of Consumer Protection Act for directing the Opposite Parties to issue "No Due Certificate / Personal Loan Clearance Certificate" to complainant in his given Personal Loan Account No. 4580PL01776393;  to issue Xerox copy of four Indian Bank Cheques Sl. No. 476008 to 476011 given in SB Account No.513130970 to the complainant;  to return processing fees charged Rs.984/- from complainant for his personal loan account No. 4580PL01776393; to pay service charges Rs.575/- deducted from the complainant SB Account No.513130970 for five times 1^st opposite party tried to claim next month instalment from complainant;  to pay a sum of Rs.1,85,000/- as compensation towards mental agony and physical tension caused to the complainant;  to pay a sum of Rs.3,00,000/- for deficiency in service and to pay a sum of Rs.10,000/-  towards cost of this complaint.

2.  The case of the complainant is as follows:

The opposite parties are doing banking business.  The complainant availed a loan of Rs.34,000/- form 1^st opposite party for purchase of Bajaj Discovery Motor Bike for Rs.49,000/- from M/s Rajarajan Motors, Villupuram Main Road, Ellapillaichavady, Pondicherry on 02.04.2013 for his son.  The said loan account number is L2WPONO2370207.  The 1^st opposite party has charged total interest of Rs.4,000/- for his given loan amount of Rs.34,000/- and both added total amount of Rs.38,000/- to be repayable upon equal monthly installment of Rs,1,900/- for 20 months arrived at Rs.38,000/-  starts from16.05.2013.  The rate of interest is 7.25% per annum as per period of repayment.  The complainant has given four cheques each filled of Rs.9,500/- drawn on Indian Bank, Main Branch, Pondicherry, SB account No.513130970, to the 1^st opposite party.  As such complainant had repaid the entire loan amount with interest total sum of Rs.38,000/- by last payment made on 12.01.2015 without any delay payment and default payment.  The 1^st opposite party has not charged any fees for loan processing.  Therefore the 1^st opposite party issued “NO OBJECTION CERTIFICATE” for name transfer in RC book at RTO office, Pondicherry and also gave each one Xerox copies of four cheques given to the 1^st opposite party.  While pending of above bike loan, the complainant has availed another loan namely” personal loan” for his family expenses of Rs.60,000/- from the 1^st opposite party.  The said loan account number is 4580PL01776393.  But amount credited in complainant account is Rs.59,016/- only.  The 1^st opposite party initially said that rate of interest for this personal loan is 12% p.a.  But complainant has no much talent in calculation of interest derivation shown by 1^st opposite party.  However he had in urgent to get loan amount had agreed the calculation shown by 1^st opposite party for charged total interest of Rs.31,890/- for his given principal amount of Rs.60,000/-.  Both  added total amount of Rs.91,890/- to be repayable upon equal monthly installment of Rs.3,063/- for 30 months arrived of Rs.91,890/- starts from 05.04.2014.  Now complainant calculates the rate of interest charged by 1^st opposite party is 21% per annum as per period of repayment for bike loan sanction, 1^st opposite party has obtained four number of complainant's signed blank cheques drawn in Indian Bank, Main Branch, M.G. Road, Pondicherry in serial No.47008 to 476011 SB a/c 513130970 for total repayment of Rs.91,890/- for 30 equal monthly installments. As such complainant had repaid the entire amount of 2^nd loan with interest total sum of Rs.91,890/- by last payment made on 06.09.2016 without any delay payment and default payment.  On 24.09.2016 when he visited to the 1^st opposite party’s office and requested to furnish “ no due certificate/clearance certificate” in view of entire loan amount was paid and to furnish the Xerox copy of four cheques issued for this “ personal loan”.   But 1^st opposite party has orally demanded additional sum of Rs.18,378/- as another six month installment which is violation in condition of 30 month installment.  The complainant has refused to pay additional six month installment total sum of Rs.18,378/- to the 1^st opposite party and requested give no due certificate.  Even then he refused to give illegal demand of additional payment, the 1^st opposite party had tried to claim subsequent month installment on 05.10.2016,07.10.2016,13.10.2016,17.10.2016 and 26.10.2016 through auto debit system in complainant saving bank account.  Because of repaid entire borrowed amount with interest to 1^st opposite party, complainant has maintained his bank account balance less than monthly installment amount.  Therefore each time complainant bank has deducted Rs.115/- form his account for service charges.  The 1^st opposite party has no right to claim over and above agreed amount after repaid by the complainant and their claim is devoid of merits and illegal.  The complainant issued a legal notice o 01.10.2016 to both opposite parties calling upon them to issue no due certificate/personal loan clearance certificate and Xerox copies of cheques given to the 1^st opposite party and to pay Rs.5,00,000/- for his physical tension and mental agony and for opposite parties deficiency in service and their unfair trade practice.  After receipt of legal notice on 02.10.2013 by 1^st opposite party and on 06.10.2016 by 2^nd opposite party both not given any reply or settle the issue with the complainant.  The difference of 1^st opposite party charging rate of interest in one loan 7.5% and another loan 21% for the same person is huge and unmatched one.  Further in beginning assured to the complainant no processing charge has been claimed.  But to the same person at second time they deducted Rs.984 without his any prior consent.  Furthermore after repaid entire loan amount and also after refusing to give additional installment amount, the 1^st opposite party had tried five times continuously to get next month installment amount without any valid reason.  Furthermore he has put the complainant unnecessarily into monetary loss for Rs.575/- deducted from his account for five times attempt of 1^st opposite party.  Hence both opposite parties are held liable for deficiency in service. Hence, this complaint. 

3. The reply version filed by the opposite parties briefly discloses the following:

          The complainant availed a loan from the opposite parties vide Loan No. 4580PL01776393 for Rs.60,000/- and the monthly EMI to be paid is Rs.3,063/- for 36 months and the complainant has issued ECS Mandate for the repayment of the instalments.  The instalment Nos. 33 and 34 has got bounced due to "Insufficient Funds", hence, a sum of Rs.8,726/- stands due.  The NOC cannot be issued as the loan still stands active and all the allegations with respect of issuance of NOC is denied by the opposite parties.  Since the loan is active, the security cheques which were given by the complainant vide PDC No. 476008 to 476011 at the time of availing the loan cannot be returned.  Further, once the loan closed, the said PDCs are purged in the system and there is no question of using the PDC's by the opposite party for any further transactions.  The opposite parties further stated that while availing the loan, all the customers are intimated that processing fees will be deducted from the loan amount and the complainant was well aware about the deductions of the incidental charges / processing fees totaling to an amount of Rs.3,984/- which is imperative from the Loan Term Sheet.  The rate of interest which has been charged towards the Loan Account No. 4580PL01776393 is as per the Loan Term Sheet which has been signed by the complainant himself and the complainant was well aware about the deductions.   The deduction of Rs.575/- could not be deducted in the system and if the complainant provides the PDF format of bank statement in the webstie, the same will be refunded to the complainant.  The opposite parties further stated that as  per Clause 32 of the Terms and Cinditons – Personal Loan, in case of dispute, all claims will be referred to the Sole Arbitrator and this Forum is debarred from entertaining such complaints.  Hence, the present complaint is frivolous and vexatious and liable to be dismissed.  Hence, prayed for dismissal of the complaint. 

          4.       Points for determination are :

1. Whether the complainant is a Consumer to the Opposite Parties?
2. Whether the Opposite Parties have committed any deficiency in service?
3. To what relief, the complainant is entitled for?                           

5.       The complainant was examined as CW1 and Exs.C1 to C6 were marked.    On the side of the opposite parties, there was no oral evidence, however three documents have been filed but not marked.   

          6. Point No.1:

          On perusal of Ex.C1 at page No.4, this Forum has observed that the complainant has availed loan from OP1 Finance Limited for a sum of Rs.59,016/- on 17.02.02014.  Hence, the complainant is considered to be a consumer to the opposite parties. 

          7. Point No.2:

   The contention of the complainant is that he has availed one bike loan from the first opposite party on 2.4.2013 for Rs.34,000/- for which he has paid all the monthly instalments without any default.  As well as the complainant has also obtained No Objection certificate for the name Transfer and also the Xerox copies of four cheques given by him to the OP1.  Ex.C2 and Ex.C3 are the corresponding letters and cheques for the above said bike loan.  During the pendency of this loan, the complainant has availed a personal loan for Rs.60,000/- from the first opposite party and Rs.59,016/- has been transferred by OP1 to the complainant's SB Account No. 513130970, Indian Bank, Pondicherry on 17.02.2014 after deducting of processing charges of Rs.984/- vide Ex.C1.  When availing loan, the OPs have told that the rate of interest is 12% per annum, but later, the complainant came to know that they have charged interest at 21% per annum.  The complainant agreed to repay the principal amount along with interest i.e. 60,000/- + 31,890/-, totally Rs.91,890/- as EMI of Rs.3063/- for thirty months.  As such, the complainant has also repaid the entire loan amount without any default from 05.04.2014 to 06.09.2016 for thirty months.  Therefore, the complainant approached the first opposite party on 24.09.2016 for No Due Certificate / Clearance Certificate and  Xerox copies of cheques 4 in nos. given by the complainant for this Personal Loan.  But, the Opposite Parties have demanded an additional sum of Rs.18,378/- as another six months installments, for which the complainant has refused to pay additional six months installments and also he has maintained his bank account less than the monthly installment amount because he has already paid the entire loan amount.  In the meantime, the OP1 has tried to debit the subsequent monthly installments on 5.10.2016, 07.10.2016, 13.10.2016, 17.10.2016 and 26.10.2016 through Auto Debit System.  Hence, the complainant has been charged for Rs.115/- as Service Charge for each transaction nearly Rs.575/- by the Indian Bank, where the complainant is having his account.  Therefore, the complainant caused to issue legal notice on 01.10.2016 vide Ex.C3 and Ex.C4 and Ex.C5 are acknowledgement card for proof of the said legal notice to the opposite parties.  Further, the complainant has also noted that the rate of interest for the bike loan is 7.25% and for this personal loan is 21%.  Therefore, the complainant approached this Forum to redress his grievance as against the opposite parties who have attributed deficiency in service and caused mental agony to the complainant.

8.       The contention of the Opposite Parties is that the complainant has availed loan from the Opposite Parties vide loan No.4580PL01776393 for an amount of Rs.60,000/-.  The monthly EMI is to be paid Rs.3,063/- for 36 months and the complainant has issued ECS Mandates for the repayment of installments.  To prove the same, the opposite parties have filed document No.1 and therefore, the complainant did not pay the entire loan amount.  The installment Nos. 33 and 34 has got bounced due to the reason insufficient funds.  As a result, an amount of Rs.8,726/- stands due and the same is reflected in the Statement of Account.  The Opposite Parties submitted that since the loan is in active, No Objection Certificate and Cheques given by the complainant cannot be issued.  The complainant was well aware of the deduction of the processing charges, totally, an amount of Rs.3984/- and the rate of interest which is stated in the loan term sheet and it was signed by the complainant.  Document No.3 is the loan term sheet.  Document No.2 is the terms and conditions of the loan.  Hence, there is no any deficiency in service rendered by the Opposite Parties s.  Therefore, the Opposite Parties prayed to dismiss the complaint and to direct the complainant to pay the outstanding dues of an amount of Rs.8726/- in order to regularize and close the account, accordingly, NOC will be issued to the complainant. 

          9. This Forum has gone through the complaint, reply versions, arguments and the documents filed by the parties.  On perusal of Ex.C1 and the Opposite Parties' documents 1 and 3 clearly show that the complainant has availed loan from the OPs.  The complainant adduced in his evidence that he has availed loan for Rs.60,000/- and Rs.59,016/- has been transferred to his SB Account, Indian Bank, Pondicherry on 17.02.2014 after deduction of charges of Rs.984/- by the OP1.  For the same, he has paid all the EMIs without any default.  The Opposite Parties contended in their reply version that the complainant has availed loan of Rs.60,000/- vide loan No. 4580PL01776393 and has to repay the same at  Rs.3063/- as monthly installments for 36 months, the complainant did not pay the entire loan amount and the cheques were bounced for 33^rd and 34^th instalments.   To prove the same, the opposite parties have filed document Nos. 1 and 3.  On perusing the documents 1 and 3, it is contrary to each other, because the document No.1 denotes that the tenure is 38 months i.e. from 05.04.2014 to 05.05.2017 and the document No.3 states that 36 months and the loan amount has been mentioned in document No.1 and 3 as Rs.63,000/- but in the reply version it is stated as Rs.60,000/-.  Further, the Opposite Parties have stated that the cheques were bounced for 33^rd  and 34^th  months instalments, as a result, an amount of Rs.8726/- stands due and the same is reflected in document No.1.  On perusing the same, four months cheques have been bounced for the reason "insufficient fund".  Therefore, it is very clear that the Opposite Parties have given contrary statements with regard to loan amount, number of instalments, number of cheques bounced and the dues.  Thus, on perusal of the documents filed by the Opposite Parties and the reply version and upon the contradictory statements, this Forum has come to the conclusion that the Opposite Parties have failed to establish their case and also attributed deficiency in service and caused mental agony to the complainant.  This Forum also found that the rate of interest, service and processing charges claimed by the opposite parties and disputed by the complainant will differ from one loan to another loan and therefore,  the complainant is not entitled for seeking such relief.    

          10. Point No.3: 

          In view of the decision taken in Point No.2, this Complaint is hereby allowed.  The Opposite Parties are jointly and severally liable and hence, they are directed to

          Issue "No Due Certificate / Personal Loan Clearance Certificate" to the complainant in his Personal Loan Account No. 4580PL01776393;

          2. Issue Xerox copy of Four Indian Bank cheques Sl. Nos. 476008 to 476011 given in SB Account No.513130970 to the complainant;

          3. Pay a sum of Rs.20,000/- towards compensation for deficiency in service and mental agony caused to the complainant

          4.  Pay a sum of Rs.5000/- towards cost of this complaint. 

Dated this the 10^th day of May 2018.

1. ASOKAN)

PRESIDENT

(V.V. STEEPHEN)

   MEMBER

(D. KAVITHA)

   MEMBER

COMPLAINANTS' WITNESS:  

CW1           31.05.2017           Anebajagane    

OPPOSITE PARTIES WITNESS:  NIL

COMPLAINANTS' EXHIBITS:  

OPPOSITE PARTY'S EXHIBITS:   NIL

1. ASOKAN)

   PRESIDENT

(V.V. STEEPHEN)

   MEMBER

(D. KAVITHA)

   MEMBER