BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION AT BANGALORE (URBAN)

DATED 12^TH DAY OF AUGUST 2024

ORDER

SMT.M.SHOBHA, PRESIDENT

1. The complaint has been filed under Section 35 of C.P.Act (hereinafter referred as an Act) against the OP for the following reliefs against the OP:-

1. Direct the OP to provide proper calculations for foreclosure of the loan a/c No.312584.
2. Direct the OP to pay a sum of Rs.5,00,000/- towards mental agony caused to the complainant.
3. Award cost of the proceedings.
4. Any other order/s that this Hon’ble Forum deems fit.

2. The case set up by the complainant in brief is as under:-

The complainant had availed a car loan of Rs.4,03,000/- from the OP at Bangalore for purchase of car bearing No.KA 04 MU 7279.  There was an overdue of Rs.88,750/- for which the complainant has undertaken to pay the same and also sought for foreclosure of the entire loan.  As on the date the outstanding a sum of Rs.2,79,968/-.

3. When the complainant has requested the OP to foreclose the loan as he is ready and willing to settle the entire amount the OP has sent a calculation claiming Rs.4,73,174/-.  When the complainant raised concerns over the calculation, the OP sent a recovery agents and also the recover agent contacted the complainant over a phone and harassed him by using abusing language and also instructed him to clear the entire loan or to face grave consequences.

4. It is further grievance of the complainant that when the complainant started resisting the harassment perpetrated by OPs recovery agents, one of the agent by name Vinu Revankar visited the complainant’s residence and abused them.  The complainant with great difficulty with the help of his well-wishers and friends resisted the illegal attempt made by the representative of the OP to recover the loan amount by indulging in it. In addition to this the said recovery agent also visited the complainant’s house on several occasions in his absence and has taken selfie photo with complainant’s family members without their consent in the back ground and started sending photos in a threatening way asking him to come and pay the balance amount.  The act of the OPs agents amounts to criminal intimidation which is punishable under IPC.

5. The recovery agent repeatedly called the complainant and harassed him by using derogatory names and talking to him disrespectfully.  As on today the recovery agent called the complainant more than 40 times and every time they have verbally abused the complainant. Even though there is a legal procedure for recovery of default loan amount, OP and its agents have resorted to the procedure not known to law and demanded for repayment instantly by harassing the complainant.   The OP recovery agent went to the extent of saying that RBI and government guidelines or any other legal rules are not applicable to them and threatened the complainant with dire consequences if he fails to repay the same within a short period.

6. The complainant has repeatedly requested the OP to provide proper calculation for foreclosure of loan amount and stop harassing him by repeated calls, which they failed to do. Due to unethical and unfair trade practices of the OP the complainant is undergoing mental agony and trauma.   The complainant got issued legal notice dated 30.09.2023 requested the OP to take appropriate action against his agent and to provide the details of the agent to enable the complainant to initiate appropriate action.  Inspite of service of notice on 04.10.2023 the OP neither rebutted the contentions of the complainant nor complied with the demands mentioned in the legal notice. Hence this complaint is filed.

7. In response to the notice, OP has appeared but not filed the version within 45 days. The permission sought by the OP to file version was rejected vide order dated 25.06.2024 on IA 1.

8. The complainant has filed his affidavit evidence and relies on 09 documents.  OP has not lead any evidence. Hence arguments of OP is taken as nil. Heard the arguments of advocate for the complainant.

9. The following points arise for our consideration as are:-

1. Whether the complainant proves deficiency of service on the part of OP?
2. Whether the complainant is entitled to relief mentioned in the complaint?
3. What order?

10. Our answers to the above points are as under:

Point No.1:  Affirmative

Point No.2: Affirmative in part

Point No.3: As per final orders

REASONS

11. Point No.1 AND 2: These two points are inter related and hence they have taken for common discussion.  We have perused the allegations made in the complaint, affidavit evidence of the complainant and documents.  The OP even though appeared has failed to file the version within 45 days and it was rejected. Hence the evidence and documents filed by the complainant remained unchallenged. There is no reason to disbelieve the evidence and documents of the complainant.

12. The complainant has availed car loan of Rs.4,03,000/- from the OP financial institution for purchased of his car bearing No.KA 04 MU 7279.  He has produced the sanction letter for having loan sanctioned by the OP as per Ex.P1.  There was an overdue of Rs.88,750/-.  The complainant has also produced the installment plan borrowers details as per Ex.P2.

13. According to the complainant there was an overdue of Rs.88,750/- for which the complainant has undertaken to pay the same and also sought for foreclosure of the entire loan.  As on the date the outstanding principal amount is Rs.2,79,968/-.  The complainant requested the OP to foreclose the loan amount as he is ready to settle the entire amount. The OP has sent a calculation claiming Rs.4,73,174/-.  When the complainant has raised difference in the calculation the OP has started sending his recovery agent and the OP used to threaten the complainant through their recovery agents.  The OP has sent their agent namely Mr.Vinu Revankar (P.No.9886721147) who visited the complainant’s house in his absence and taken the photographs of the family members and he used to send the photographs through whatsapp to the complainant in a threatening manner.  The OPs have also claiming through their recovery agents that the RBI government rules or any other legal rules are not applicable to them and used to threaten the complainant with dire consequences if he fails to repay the foreclosure amount of Rs.4,73,174/- within a short period.

14. The complainant in support of his contention has also produced the copies of the photographs to show that one of the recovery agent of the OP has visited his house in his absence and took the photographs of his family members. At last the complainant got issued legal notice as per Ex.P6 which was duly served on the OP on 04.10.2023. inspite of that they neither replied nor honor the demands made by the complainant.  The OPs are only interested in harassing and threatening the family member of the complainant for recovery of the exorbitant amount claimed by them.

15. The only grievance of the complainant is that as on the date of filing this complaint he was due a principal amount of Rs.2,79,968/-. He has requested the OP to foreclose the loan as he is ready to settle the amount.

16. The OPs have sent a calculation claiming Rs.4,73,174/-. When the complainant has raised voice over the calculation raised by the OP, they started sending the recovery agents and started making galata in the house of the complainant in his absence and the recovery agent used to sent whatsapp and also used to call the complainant threatening the complainant that he has to face dire consequences if he fails to clear the loan amount within a short period.

17. The conduct of the OP clear discloses that they are running the company by appointing recovery agents and they use to collect the exorbitant interest from the borrowers. If they failed to pay the exorbitant interest claimed by them they will harass the borrowers family by sending threatening messages and by calling giving threat to the borrower and his family.

18. If there is any difference in the calculation it is the duty of the OP to call the complainant to their financial institution and settle the matter and give the complainant a reasonable time to foreclose the loan amount.  Even though the complainant is ready to foreclose the loan amount the OPs are claiming exorbitant amount by way of interest and tried to recover the amount forcefully, which is illegal and it amounts to unfair trade practices.

19. Under these circumstances, the complainant has to undergo severe mental torture, therefore the complainant is entitle to the relief claimed in the complaint. Hence we answer point No.1 in affirmative and point No.2 partly in affirmative.

20. Point No.3:- In view the discussion referred above we proceed to pass the following;

O R D E R

1. The complaint is allowed in part.
2. OP is hereby directed to provide proper calculation for foreclosure of loan account No.312584 to the complainant within 60 days from the date of this order.
3. OP is further directed to pay a compensation of Rs.50,000/- to the complainant for mental agony and harassment with litigation expenses of Rs.10,000/- to the complainant.
4. The OP shall comply this order within 60 days from this date, failing which the OP shall pay additional interest at 8% p.a., after expiry of 60 days on the outstanding principal amount till realization.
5. Furnish the copy of this order and return the extra pleadings and documents to the parties.

(Dictated to the Stenographer, got it transcribed and corrected, pronounced in the Open Commission on this 12^TH day of AUGUST 2024)

Documents produced by the Complainant-P.W.1 are as follows:

Documents produced by the representative of opposite party – R.W.1;

NIL