ORDER
(Passed on 18/12/2019)
PER SHRI.ATUL D.ALSI, PRESIDENT.
The complainant has filed this complaint U/s 12 of the Consumer Protection Act,1986 against non removal of name from Credit Information Bureau (I) ltd. CIBIL for arrears of loan by the OP Bank even after settlement of loan account and thereby claiming compensation of Rs.50,000/- towards mental torture and further Rs.10,000/- towards cost of proceeding.
2. The facts in short giving rise to this petition are that the complainant had applied for education loan on 7/11/2007 and was sanctioned a loan of Rs.2,80,000/- by the OP Bank. out of which Rs.2,35,000/- were disbursed in favour of the complainant. However, due to irregular repayment, the complainant’s loan account became NPA and as per one time settlement scheme of OP bank, the complainant deposited Rs.1,70,000/- on 25/2/2014 and Rs.6,300/- on 26/3/2014. So the total amount of Rs.1,76,300/- has been paid to the Bank from 1/4/2013 to 26/3/2014 towards settlement of loan account of complainant. The OP also issued no due certificate in respect of said loan account to the complainant on 26/3/2014.
The complainant wants to avail housing loan for construction of his house. Therefore, he applied for housing loan of Rs.16 lac and the SBI, Warora Branch, Distt.Chandrapur has sanctioned the same to him on 27/6/2018. But the bank refused to disburse the sanctioned loan as the complainant’s name appear in the Credit Information Bureau (I) Ltd.(CIBIL) defaulter list having arrears of loan against him. Therefore, the complainant requested OP Bank to remove his name from the defaulter list as his loan account has been settled as per one time settlemenent between the parties. However, the OP Bank refused to do so saying that there is still outstanding loan of Rs.3,50,000/- in the loan account of the complainant for non payment of agreed amount. The complainant also shown No Due Certificate issed by the OP Bank in respect of said loan account. However, there was no positive response from the OP Bank. Hence the complainant issued a legal notice to the OPs through his Advocate Mr.Aman Marekar on 30/7/2018 but the OPs did not comply the notice. Hence, the complainant has filed this complaint.
6. The complaint is admitted and notices were served on the OPs. The OP No.1 to 3 filed their reply and thereby denied allegations as against them. However, these OPs admitted that the OPs had advanced an education loan of Rs.2,80,000/- to the complainant and had disbursed Rs.2,35,000/- to him. However, due to non payment of dues the account became NPA. Hence the OP No.3 had given a proposal for one time settlement of loan account to the complainant on 1/1/2014 wherein the complainant was required to deposit Rs.1,76,300/- as one time settlement till 28/2/2014 and then a rebate of Rs.1,22,700/- from loan amount will be given to him as per scheme. However, if the complainant wants to avail further loan within 5 years from the full n final settlement of loan account, then he will have to repay the entire loan arrears including rebate amount first and then only he would be entitled to avail loan. Under the said scheme, the complainant was required to deposit entire settlement amount on or before 28/02/2014. However, the complainant failed to deposit entire amount of Rs.1,76,300/- within the scheduled time. Therefore, the complainant is not entitled for benefit of one time settlement scheme. The complainant failed to file the complaint within 2 years from the date of sanction of loan in 2014 and the case filed on 27/6/2018 is time barred and as such is liable to be dismissed with cost.
8. Counsel for the complainant argued that the complainant has availed one time settlement of loan scheme proposed by the OP Bank and has filed copy thereof at Exh.A-1 and settlement of loan account at page A-2 as per list of documents dated 6/10/2018. The complainant deposited Rs.1,70,000/- on 25/2/2014 and Rs.6,300/- on 26/3/2014 towards one time settlement scheme and hence the OP Bank has issued No Due Certificate in favour of complainant in respect of said loan account on 26/2/2015 which is filed at page A-3. Therefore, after closing of said loan account the OP Bank ought to have removed the name of the complainant from CIBIL list. However, evenafter service of notice to the OP, the Bank refused to remove his name from CIBIL list which amounts to deficiency in service.
9. Counsel for the OPs argued that as per the one time settlement agreed between the parties the complainant was required to deposit Rs.1,76,300/- as one time settlement till 28/2/2014 and then a rebate of Rs.1,22,700/- from loan amount will be given to him as per scheme. However, if the complainant wants to avail further loan within 5 years from the date of full n final settlement of loan account, then he will have to repay the entire loan arrears including rebate amount first and then only he would be entitled to avail loan. Under the said scheme, the complainant was required to deposit entire settlement amount on or before 28/02/2014. However, the complainant failed to deposit entire amount of Rs.1,76,300/- within said time limit and has paid Rs.1,70,000/- on 25/2/2014 & Rs.6,300/- on 26/3/2014. As such, he is not entitled for rebate under the scheme and hence his loan account shows arrears of loan with accrued interest. Hence the petition has no merit and is liable to be dismissed with cost.
10. We have gone through the complaint, written versions filed by OP No.1, 2 & 3, affidavit, documents and WNA filed by the parties. We have also heard the oral arguments advanced by parties.
Points Finding
- Whether there is a deficiency in service on the
part of OP Nos.1 to 3 ? Yes
2. What order ? As per final order..
As to issue No.1
11. The status of the complainant as the Consumer of OP Nos.1 to 3 is undisputed. From the pleadings of the parties, it can safely be gathered that the OPs had advanced an education loan of Rs.2,80,000/- to the complainant and had disbursed Rs.2,35,000/- to him. However, due to non payment of dues the account became NPA. Hence the OP No.3 had given a proposal for one time settlement of loan account to the complainant on 1/1/2014 wherein the complainant was required to deposit Rs.1,76,300/- as one time settlement. Admittedly, the complainant has paid Rs.1,70,000/- on 25/2/2014 & Rs.6,300/- on 26/3/2014 to the OP Bank and the Bank also issued No Due Certificate to the complainant in respect of said loan account to the complainant. Said No Due Certificate is filed on record at page A-3 as per list of documents filed by the complainant on 6/10/2018. The No Due Certificate is a final document of full and final settlment of dues and closure of loan account which is issued only after satisfaction of loan amount. Once the No Due Certificate is issued mentioning that there is no arrears of loan and the loan account has been finally closed, the Bank is estopped from claiming arrears of loan amount in respect of the same loan account from the complainant. Hence after full and final settlement of loan account, refusal to remove name of the complainant from CIBIL arrears of loan list amounts to deficiency in service. Hence the complainant is entitled to get his name removed from the CIBIL List of arrears of loan amount besides adequate compensation for mental torture and cost of proceeding. Hence the issue is decided accordingly.
As to issue No.2
12. Ins view of our observations as above, we pass the following order..
Final order
1. The Complaint is partly allowed.
- The OP Nos.1 to 3 are directed to jointly and severally remove
name of the complainant from the CIBIL list of arrears of loan.
- The OP Nos.1 to 3 are directed to jointly and severally pay to
the complainant an amount of Rs.5,000/- towards compensation for mental agony and further Rs.5,000/- towards cost of proceedings.
4. Copy of the order be furnished to both the parties free of cost.
(Smt.Kalpana Jangade (Kute) (Smt.Kirti Vaidya (Gadgil) (Shri.Atul D.Alsi)
Member Member President
