Kerala

Idukki

CC/107/2018

Jaimon M I - Complainant(s)

Versus

Branch Manager Indus Indu Bank - Opp.Party(s)

Adv.Lissy M M

30 Jun 2020

ORDER

DATE OF FILING : 30.5.2018

BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 30^th day of June, 2020

Present :

SMT.ASAMOL P. PRESIDENT IN CHARGE

SRI.AMPADY K.S. MEMBER

CC NO.107/2018

Between

Complainant : Jaimon M.I., S/o. Isaac,

Molathan House,

Mannamkandam P.O.,

200 Acre,

Idukki.

(By Adv: Lissy M.M.)

And

Opposite Party : The Branch Manager,

IndusInd Bank,

Adimali Branch,

Adimali P.O.,

Idukki.

(By Adv: Eby Thomas)

 

O R D E R

 

SMT. ASAMOL P., PRESIDENT-IN-CHARGE

 

The case of the complainant is that,

 

The complainant availed a car loan of Rs.1,75,000/- from the opposite party. As per the repayment schedule, the complainant had to repay the loan amount with interest by 36 equated monthly instalments of Rs.6,185/- and in addition to the said monthly instalments, the complainant had to pay insurance premium advance of Rs.300/- per month for a period of first 20 months of the loan period. That at the time of entering into the contract, the opposite party represented to the complainant that the insurance premium advance so collected by the opposite party will be credited to the loan account of the complainant on production of a copy of the insurance certificate for each year to the office of the opposite party. Accordingly, the complainant remitted the insurance premium promptly and produced the certificate of insurance to the opposite party in time. But the opposite party did not credited the insurance premium advance so collected by the opposite party to the loan account of the complainant.

(cont.....2)

- 2 -

 

Further, the opposite party additionally withdrawn an amount of Rs.7,412/- on 30.7.2016 and Rs.1,483/- on 6/8/2017 coming to total of Rs.8895/- towards insurance premium from the monthly instalments remitted by the complainant. The opposite party had withdrawn the said amount without the knowledge or consent of the complainant. Since, the opposite party failed to credit the insurance advance of Rs.6000/- to the account of the complainant and by the illegal withdrawal of Rs.8895/- from the monthly instalments remitted by the complainant without his knowledge and consent, the complainant became a defaulter of bank loan which resulted in reducing his CIBIL score. Further the opposite party deducted more than Rs.1,750/- from the instalments paid towards overdue charges. If the above said amount were promptly credited yo the loan account, the complainant may not be defaulter of loan and no amount will happened to be deducted on account of late fee or over due charges.

 

In fact, the complainant need to pay Rs.6185/-, per month after the 20^th instalment, but, the complainant paid Rs.6500/- per month even after the 20^th instalment till this time. For the delay if any, occurred in payment of any of the instalment, the opposite party charged late fee / overdue charges from the complainant and deducted the said charges from the excess amount so paid along with the actual instalment amount. The complainant paid 34 instalments

 

till this time and the defendants are now claiming Rs.17000/- for closing the loan account. If the above said amounts were promptly credited, the loan would have been cleared much earlier. The complainant issued a lawyer notice to the opposite party but they send a reply raising untenable and false contentions. The above said acts of the opposite party amounts to deficiency in service and unfair trade practice which is actionable under the Consumer Protection Act.

 

Hence the complainant claims the following reliefs from the opposite party.

1. To give credit to the account of the complainant or to pay directly to the complainant Rs.14,895/- and further to waive the over due charges calculated by opposite party in the loan account of the complainant and to return the overdue charges deducted from the loan instalment to the complainant.

 

2. To pay compensation of Rs.50000/- and costs of the complainant.

 

(cont.....3)

- 3 -

Notice served from the Forum. Opposite party appeared before the Forum. They have filed written version.

 

From the version, the opposite party admitted that the complainant had availed a vehicle loan from them. Opposite party submitted that the complainant has not produced any renewed second year insurance policy, hence opposite party bank had renewed the second year and third year insurance policy of the vehicle. Opposite party bank has no knowledge regarding the renewal of insurance policy by the complainant. It is submitted that opposite party has debited an amount of Rs.7412/- on 30.7.2016 and also an amount of Rs.1483/- on 6.8.2017 in the loan account of the complainant with regard to the additional amount incurred for renewal of insurance policy. So the complainant is not entitled to get refund of insurance deposit amounting Rs.6000/-. The complainant is also liable to pay the additional expense amounting Rs.8895/- incurred by the opposite party for the renewal of the insurance policy. Due to the non-payment of this amount, additional interest also accrued in the loan account of the complainant. All payments made by the complainant was duly accounted and proper receipt was issued against all payment. The complainant failed to make EMIs within the due date as per the repayment schedule of the loan agreement. So the complainant is liable to pay additional interest for the delayed defaulted instalments. The opposite party bank never commit any unfair trade practice against the complainant. There is no deficiency in service involved in the subject matter, all which is based upon a contract between the parties. The opposite party bank is not responsible for the lower credit rating of the complainant. As per the statement of account of the complainant's loan account as on 10.8.2018 an amount of Rs.17,405/- pending towards principle outstanding and also an amount of Rs.2803/- pending towards additional interest. So the complainant is not entitled to any relief prayed in the complaint. Hence the complaint my be dismissed with cost to the opposite party.

 

Evidence adduced by way of proof affidavit filed by the complainant and produced 7 documents. The complainant was examined as PW1. Ext.P1 is the statement of account dated 23.5.2018. Ext.P2 is certificate of insurance of the period from 20.7.2015 to 19.7.2016. Ext.P3 is certificate of insurance of the period from 20.7.2017 to 19.7.2018. Ext.P4 is certificate of insurance of the period from 20.7.2016 to 19.7.2017. Ext.P5 is copy of lawyer notice. Ext.P6 is AD Card. Ext.P7(series) is certificate cum policy schedule for 3 years from 20.7.2016 to 19.7.2019.

 

(cont.....4)

- 4 -

Opposite party has not taken any oral or documentary evidence to prove their own contentions stated in their version.

 

The point for consideration is whether there is any deficiency in service from the part of opposite party and if so, for what relief the complainant is entitled to ?

 

The POINT :- We have heard the learned counsels. We are of the considered view that the complainant had availed a car loan from opposite party under a contract and as per the repayment schedule, the complainant had paid the loan amount along with insurance premium advance of Rs.300/- per month for a period of first 20 months of the loan period. It is proved by Ext.P1 document. From the deposition of PW1, he has taken the insurance policy and it informed to the opposite party bank in time to time. Later he produced original policy certificates before the Forum which were marked as Exts.P7(series). So, we have satisfied and considered that the complainant has right to refund the amount paid to the bank as advance of insurance premium.

 

We have inspected Ext.P1 document. It is seen in the document, the opposite pary bank withdrawn an amount of Rs.7412/- on 30.7.2016 and Rs.1483/- on 6.8.2017. It is submitted in the version of opposite party that the opposite party has debited such amount for renewal of insurance policy. But the opposite party has not produced any document of renewed insurance policy before the Forum. Regarding the Ext.P1 document, the complainant has right to refund such amount from opposite party. If such amounts were promptly credited to the loan account by opposite party, overdue charges would not come into the loan account of the complainant. Hence we considered that there is a deficiency in service on the part of opposite party.

 

Hence the complaint allowed. The Forum directs the opposite party to pay Rs.14,895/- directly to the complainant and also directs the opposite party to waive the overdue charges includes future due from the loan account of the complainant. The Forum also directs the opposite party to pay cost of Rs.5000/- to the complainant. The opposite party is directed

 

(cont.....5)

- 5 -

 

to pay all the amount within 30 days from the date of receipt of copy of this order, failing which the amount shall carry 12% interest per annum from the date of default, till its realisation.

 

Pronounced in the Open Forum on this the 30^th day of June, 2020

 

 

Sd/-

SMT. ASAMOL P., PRESIDENT-IN-CHARGE

Sd/-

AMPADY K.S., MEMBER

 

 

APPENDIX

Depositions :

On the side of the Complainant :

PW1 - Jaimon M.I.

On the side of the Opposite Party :

Nil.

Exhibits :

On the side of the Complainant :

Ext.P1 - statement of account dated 23.5.2018.

Ext.P2 - certificate of insurance of the period from 20.7.2015 to 19.7.2016.

Ext.P3 - certificate of insurance of the period from 20.7.2017 to 19.7.2018.

Ext.P4 - certificate of insurance of the period from 20.7.2016 to 19.7.2017.

Ext.P5 - copy of lawyer notice.

Ext.P6 - AD Card.

Ext.P7(series) - certificate cum policy schedule for 3 years

from 20.7.2016 to 19.7.2019.

On the side of the Opposite Party :

Nil.

 

Forwarded by Order,

 

 

SENIOR SUPERINTENDENT