JUDGMENT

Shri Aswini Kumar Patra, President

1.  The captioned Consumer Complaint is filed by the complainant   alleging negligence & deficiency in service on the part of Opposite Parties for declaring NPA of his loan account and for charging of compound interest, interest over interest and penal interest over the loan during the Covid-19 period causing financial loss & mental agony to the complainant. 
2.  The complainant has prayed for directions to the OP to   restructure the loan amount and rescheduled for monthly installment payment of the loan amount as may be convenience for payment of the complainant and also prayed to direct the Op to exempt extra & excess interest imposed in the loan account beyond scheduled rate of interest and for a direction to pay cost of filling of this complainant.
3. Brief facts of the complaint is that, the complainant  has availed loan from the OP/Bank for an amount of Rs.5,62,000/-  depositing down payment of Rs.1,80,000/ vide loan Account No.737500NG0000263 to purchase a vehicle. After sanctioned of said loan OP  delivered a Maruti Suzuki Swift Dezire vehicle vide Model No.VXIDRR4CD2, Engine No.K12MN9001325, Chassis No,MA3CZF63SKF550225  for a sum of Rs.7,32,000/-  and since then the complainant is depositing monthly installment of Rs.9,142/-  per month from September 2019 to March,2020. It is further stated that, as per RBI guideline moratorium period was given to all the customer those who had taken loan from financial organization from March 2020 to August,2020. Due to Covid 19 situation   the complainant could not pay the required monthly installment for two months  to the OP/ Bank  and as per guideline issued by RBI the complainant applied for moratorium  of the said loan but the op/ bank did not considered the moratorium period and declared the loan to be NPA.  Complainant approached the OP/bank for consideration of moratorium period and requested for reschedule of the installment amount so that, the complainant shall be able to repay the installment as agreed during the time of financed but the OP/bank did not considered the proposal of the complainant and imposed heavy interest over the capital loan amount as well as over the installment amount. It is further contended that, in the month of March 2021   the OP/ Bank declared NPA to the loan account of the complainant  and no further installment  payment has been rescheduled  and the total amount of loan amount has been levied to sum of Rs.7,27,952/-  which is completely unjust and illegal  and a clear case of harassment to the complainant. On dt.05.01.2022  the OP Bank has issued  a notice  and warned  to pay Rs.7,27,952/-  before 15.01.2022  or else  said financed  vehicle shall be  seized  by the OP/ bank.  After receiving of said notice the complainant again approached the OP/ bank to reschedule the installment amount but the OP/Bank did not consider the request of the complainant for which the complainant finding no other option took shelter of this Commission with this complaint.
4. On being notice, the Opposite Parties appeared through their Learned Counsel Shri Sachida Nanda Sahu  & Associates but  failed to file their written version  within the stipulated period of time as prescribed under C.P.Act,2019. The averments of the complainant petition remain unchallenged. However we have given sufficient opportunities to the Op/Bank to participate in the hearing of this case without written version accordingly Op has participated in the hearing of this case.
5. Heard the Ld. Counsel of the both parties present. Perused the material available on record. We have our thoughtful consideration on the submission of the Learned Counsel of both parties present.
6. Learned counsel for the complainant submitted that, the Op/Bank has failed to filed their written statement as such the averment of the complainant remain unchallenged, accordingly the complainant be granted all the relief(s)  as prayed for in this complainant .
7. The Ld. Counsel for the complainant further  submitted that, the complainant never flee from repayment of actual loan dues rather willing to repay the loan dues but the op/Bank is not accepting the EMIs saying that, the loan account is declared NPA & part payment is not allowed and the Op/Bank is demanding  repayment of entire loan at once upon which the complainant shows his inability rather the complainant is ready to repay the loan in easy EMIs  subject to deduction of penal interest, interest on interest charged on the complainant during COVID-19. 
8. The learned counsel appearing for the Op admitted  the facts of disbursement of the alleged loan to the complainant for purchasing of a vehicle and submitted that, the complainant was very irregular in paying his EMIs on time. It is further submitted that, complainant got default for repaying of the loan EMIs for which loan is declared as NPA and when a loan is declared NPA the Op/Bank has no authority to accept part payment, however as per the direction of this Hon’ble Commission the Op/Bank has accepted the part payment of loan dues i.e Rs 40,000 + one EMI of Rs. 9,142/- on dt.25.03.22 and since then the complainant has never turn up to repay the loan .The complainant is not in clean hand. He has violated the interim order of this Hon’ble  Commission to repay the loan EMIs as such not entitled for any relief as prayed for rather this complainant is to be dismissed with cost.
9. The learned counsel for the Op further submitted that, loan due against the complainant /borrower is public money need to be collected from the complainant/borrower. The Ops have being requesting the complainant to pay the loan amount but not responding, even not obeyed the interim order dt.09.02.2022 passed by this commission. He further submitted that, the complainant was very irregular in paying his EMIs on time and default in repayment of loan due for which loan is rightly declared as NPA. It is further submitted that, the Opposite Parties had  give  sufficient opportunities to clear all the outstanding dues but the complainant has been  giving false assurance to repay the   same but  failed for  which  the Ops acted upon as per terms &  conditions of the loan agreement. Ld. Counsel for the Op further submitted that, honoring the order of Hon’ble Supreme Court of India, no penal interest or any kind of compound interest had been charged upon the complainant till date. When the complainant defaulted in paying EMIs continuously, the opposite parties acted upon the terms & conditions of its loan agreement and declared the loan as NPA as such, in the above circumstances, there is no cause of action arose to filed this complaint against the Ops as there is no any deficiency of service or unfair trade practice on the part of ops rather this complaint is misconceived, false and baseless devoid of any merit deserve to be dismissed with cost.
10. On being heard the learned counsel of both the parties present and after perusal of the complaint petition &  all the documents relied on by complainant  placed on the placed on record, the points for consideration before this Commission are:-(i) Whether the Opposite Party has justified to declare the loan as NPA ?  (ii) whether any penal interest or any kind of compound interest had been charged upon the complainant during moratorium period of Covid -19 ignoring the direction of the Apex Court of India and (iii) whether  there is any deficiency in service & unfair trade practice on the part of the Ops caused injuries to the complainant? And whether the complainant is entitle to relief(s) claimed?
11. The fact that, the complainant has purchased a vehicle  being financed by the OPs under   loan –cum -hypothecation agreement and that, the complainant got default in repayment  of the loan as per the agreement and that, on default the finance company/Op has declared the loan as NPA in the month of March 2021 and no further installment payment has been rescheduled and that, on dt.05.01.2022  the OP/ Bank has issued  a notice  and warned  to pay Rs.7,27,952/-  before 15.01.2022  or else  said financed  vehicle shall be  seized  by the OP/ bank but subject vehicle is not yet repossessed by the Op/Bank and that, after receiving the said notice the complainant again approached the OP bank to reschedule the installment amount and expressed his willingness to repay the loan dues but the bank did not considered the moratorium period and declared the loan to be NPA and that ,as the OP/Bank did not consider the request of the complainant the complainant suffered injuries and force to pay penal interest, compound interest  charged upon the complainant during moratorium period ignoring the RBI guideline passed during COVID-19 and that, the Op/Bank did not considered the moratorium period and declared the loan NPA remain un challenged .
12. As per Sec.38(6) of C.P.Act,2019 every complaint shall be heard by the District Commission on the basis of affidavit and documentary evidence placed on record ; as such it casts an obligation on the District Commission to decide the complaint on the basis of evidence brought to its notice by the complainant and the service provider/seller, irrespective of whether the service provider/seller adduced evidence or not. The decision of the District Commission has to be based on evidence relied upon by the complainant. The onus thus is on the complainant making allegation.
13. Law is well settled that, mere pleading itself shall not construed evidence. Complainant is to prove the allegation made in his complaint petition but here in this case no cogent evidence is adduced by the complainant to prove the complaint allegation against the Ops.
14. We have found nothing arbitral or illegal to declared the loan as NPA by Opposite Party /Bank on account of default of repayment of loan  . The complainant has failed to proved his contention that, any   penal interest or any kind of compound interest had ever been charged upon the complainant during moratorium period of Covid -19 ignoring the direction of the Apex Court of India & RBI guideline as cited by him so also, complainant has failed to proved any deficiency in service & unfair trade practice on the part of the Ops/ caused any injuries to him.
15. Law governing hire purchase agreement is well settled that”:- “The financier remains the owner of the vehicle taken by the complainant on hire, on condition of option to purchase, upon payment of all hire installments. The hire installments are charges for use of the vehicle as also for the exercise of option to purchase the vehicle in future .The financer being the owner of the vehicle there was no obligation on the part of the financer, to divulge details of the sale of that vehicle, and that too on its own, without being called upon to do so .”(NCJ  2020 page-778) .
16. Based on above discussion and settled principle of law, we are of the opinion that, complainant has failed to proved any deficiency in service & unfair trade practice on the part of the Op/Bank caused any injuries to him .We found unjustified to declare the loan A/C of complainant as NPA on account of default of repayment of loan so also nothing proved  to hold that , any penal interest or any kind of compound interest had been charged upon the complainant during moratorium period of Covid -19 ignoring the direction of the Apex Court of India & RBI guideline The complainant has failed to proved any deficiency in service & unfair trade practice on the part of the Ops caused injuries to him  as such the complainant is  entitle to relief(s) as claimed in this complainant.
17. However, it is found that, the complainant is willing to repay the outstanding loan amount in easy monthly installment accordingly it may be proper on the part of the Op/Bank to restructure the outstanding loan there against the complainant and rescheduled EMIs for easy repayment of the loan  by  withdrawing the declaration of NPA of the said loan and further more it shall be proper to exempt the complainant from payment of  penal interest, interest on interest if any charged against the borrower/complainant during pandemic Covid -19 situation so to avoid further litigation .Hence it is order .

ORDER

    This complaint is allowed in part  against the Op/Bank on contest with the following direction:- The Op/Bank  is hereby directed to rescheduled the outstanding loan there against the complainant vide  Loan Account No. 737500NG00000236 payable in easy monthly installment by withdrawing the declaration of NPA of the said loan A/C and further directed  to exempt the complainant from payment of  penal interest, interest on interest if any charged against the borrower/complainant during pandemic Covid -19  within 45 days of receiving of this order and the complainant shall be duty bound to repay rescheduled EMIs regularly to the OP/Bank towards repayment of the loan. No order as to   cost.       

Dictated and corrected by me.

       Sd/-

President

                  I   agree.

   Sd/-                                             

Member.

    Pronounced in open Commission today on 1^st  day of November 2023 under the seal and signature of this Commission.

    The pending application if any is also disposed off accordingly.

    Free copy of this order be supplied to the parties for their perusal or party may download the same from the Confonet be treated as copy served to the parties. Complaint is disposed of accordingly.