DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, JHARSUGUDA
CONSUMER COMPLAINT CASE NO. 20 OF 2017
Indra Devi (55 Years),
W/O- Santoo Jha,
R/O/ PO/PS: Belpahar,
Dist: Jharsuguda, Odisha……………………………………….…………Complainant.
Versus
Branch Manager,
Shriram Transport Finance Co. Ltd.,Jharsuguda,
Main Road, Beheramal,
PO/PS/ Dist: Jharsuguda, Odisha…….…...……………….……..….……..Opp. Party.
Counsel for the Parties:-
For the Complainant Mamta Jha, Adv. & Associates.
For the Opp. Party P.K. Mali, Adv. & Associates.
Date of Order: 13.12.2017
Present
1. Shri Sundar Lal Behera, President.
2. Shri Santosh Kumar Ojha, Member.
3. Smt. Anamika Nanda, Member (W).
Shri Santosh Kumar Ojha, Member :- The brief facts of the complainant’s case is that, the complainant availed loan of Rs.6,00,000/- only from the O.P. on dtd. 04.09.2012 and purchased one vehicle bearing Regn. No.OR-23B-2362. The complainant was to pay the loan amount with interest and charges amounting Rs.8,83,892/- only in 45 nos. of monthly started from 05.10.2012 to 05.06.2016. The complainant has paid Rs.10,88,003/- only till dated 31.12.2016 but the O.P is illegally and arbitrarily claiming Rs.5,61,870/- only without any reasonable ground, hence this case.
The O.P. appeared through his counsel after being noticed admitted on the facts of loan taken by the complainant. The O.P submitted that the case is not maintainable as they never provide any service under the loan hypothecation agreement rather it a commercial enterprises of the complainant. The complainant is defaulter of paying the installments and till dtd.19.04.2017 there is outstanding dues of Rs.5,93,336/- including several loans and denied on all the allegations of the complainant.
Heard in length from both the sides and gone through the documents available. The O.P. filed a statement of accounts dtd. 14.09.2017 which reveals that the complainant has paid Rs.11,02,003/- only out of due amount of Rs.17,74,532/- only and the arrear amount is Rs.6,72,529/- only. In addition to that future principal was calculated Rs.6,799/- only and full and final settlement amounting Rs.6,79,428/- only. In contrary the complainant has filed the Money Receipts and extract copy of “Guidelines on Fair Practices Code for NBFCs” bearing No. RBI/ 2012-13/416, DNBS.CC.PD.No.320/03.10.01/2012-13 dtd.08.02.2013 issued by the Reserve Bank of India.
In bare eyes, if we observe the statement of accounts issued by the O.P dtd.14.09.2017 the complainant had to pay Rs. 17,74,532/- only till the date, out of which she has paid Rs. 11,02,003/- only and still there is dues of Rs. 6,72,529/- only, in addition to that there is future principal amount of Rs. 6,899/- only is also due i.e in total Rs. 6,79,428/- only is pending for full and final settlement as on dtd.19.09.2017. If we calculate the total dues it extended to Rs. 24,53,960/- only.
The complainant has taken loan of Rs. 6,00,000/- only which she had to repay Rs. 8,83,892/- only in total including interest and other charges in 45 Nos. of monthly installments started from dtd. 05.10.2012 to 05.06.2016, whereas the complainant has repaid Rs. 11,02,003/- only. If we observe on the total repayment amount, the complainant had to repay Rs. 8,83,892/- only till dtd. 05.06.2016 but the calculation of the O.P shows Rs. 24,53,960/- only for full and final settlement amount till dtd. 19.09.2017 i.e near about two and half times of the actual total dues.
More interestingly the O.P has sanctioned 08(eight) Nos. of more loans in favour of the complainant in addition to the first loan. In general practice any financial institution does not provide any other loan to his borrower until the first loan is cleared, but in this case the present O.P provided 08(eight) Nos. of more loans to the complainant knowingly when the first loan is said to be not cleared and taking interest on all the loans so also penal interest over other charges.
The O.P has calculated the said figure of amount on what basis and on adopting which principles, those are not reflected in the said statement of accounts so also the terms and conditions of the agreement executed between the parties. The O.P failed to produce any relevant document in support of his case except the statement of accounts and to prove his case. In this connection the “Guidelines on Fair Practices Code for NBFCs” issued by ‘Reserve Bank of India’ clearly mentioned as follows.
A(ii) Loan appraisal and terms/conditions
The NBFCs should convey in writing to the borrower in the vernacular language as understood by the borrower by means of sanction letter or otherwise, the amount of loan sanctioned along with the terms and condition including analyzed rate of interest and method of application thereof and keep the acceptance of the terms and condition by the borrower on its record. As complaints received against NBFCs generally pertain to charging of high interest / penal interest, NBFCs shall mention the penal interest charged for late repayment in bold in the loan agreement.
It is understood that in a few cases, borrowers at the time of sanction of loans are nor fully aware of the terms and condition of the loans including rate of interest, either because the NBFC does not provide details of the same or the borrower has no time to look into detailed agreement.
Not furnishing a copy of the loan agreement or enclosures quoted in the loan agreement is an unfair practice and this could lead to dispute between the NBFC and the borrower with regard to the terms and condition on which the loan is granted.
NBFCs are, therefore, advised to furnish a copy of the loan agreement preferably in the vernacular language as understood by the borrower along with a copy each of all enclosure quoted in the loan agreement to all the borrowers at the time of sanction / disbursement of loans.
The provision of said guidelines further say that :
A(iv)(c) In the matter of recovery of loans the NBFCs should not resort to undue harassment viz. persistently bothering the borrowers at odd hours, use of muscle power for recovery of loans etc. xxxxxxxxx
A(viii) Complaints about excessive interest charged by NBFCs (issued vide CC No.95 dated May 24,2007)
The Reserve Bank has been receiving several complaints regarding levying of excessive interest and charges on certain loans and advances by NBFCs. Though interest rates are not regulated by the Bank, rate of interest beyond a certain level may be seen to excessive and can neither be sustainable nor be conforming to normal financial practice. Boards of NBFCs are, therefore, advised to lay out appropriated internal principles and procedures in determining interest rates and processing and other charges. In this regard the guidelines indicated in the Fair Practices Code about transparency in respect of terms and condition of the loans are to be kept in view.
In the present case the O.P failed to file the copy of loan agreement executed between the parties so that it can be ascertained the above mentioned guidelines are being properly followed by them or not regarding the appropriate rate of interest, penal interest and various charges and all.
Though the Consumer Fora are based on the deciding the matters on adopting summary procedures but it is very well competent to hold the matter on committing of unfair trade practice by any O.P/s, traders, manufactures or service providers. In this case as the O.P failed to disclose / prove his part of obligations related to charging interest, penal interest and various charges etc., adopting which principles or can say in what basis. Such activities of the O.P clearly arrows towards committing of unfair trade practice on his part towards complainant. Hence, on the above limelight this Hon’ble Forum allows the complaint petition of complainant with following directions to the O.P in form of order as follows:
ORDER
- The O.P is hereby directed to waive out the entire outstanding dues pending on the part of complainant and close the loan account related to the vehicle bearing Registration No. OR-23-B-2362 of the complainant.
- The O.P is hereby further directed to issue No Objection Certificate (NOC) in favour of the compliant after closing the abovementioned loan account of the complainant.
- The aforesaid orders shall be carried out with in 30(thirty) days from the date of receipt of this order.
Accordingly the present case is disposed of.
Order pronounced in the open court today the 13th day of December’ 2017. Free copy of this order be communicated to the concerned parties as per rule.
I Agree. I Agree.
A.Nanda, Member(W) S. L. Behera, President S.K.Ojha, Member
Dictated and corrected by me
S.K.Ojha, Member
