SHRI A.P.MUND, PRESIDENT: - Complainant Tikeswar Mirdha has filed this case against the O.P. alleging deficiency in service as well as unfair trade practice claiming reliefs on different counts. Case of the complainant in brief is that he is a member of a joint family and he along with his mother, elder brother and nephew after signing necessary forms, took an agricultural loan from the O.P. Bank to buy a Tractor. The loan was for an amount of Rs.3 lakhs and the loan account number being 01572158453 dated.30.11.2000. The quarterly installment was fixed at Rs.17.650/- by the O.P. After availing the loan complainant purchased a Tractor with Trailer and got it registered vide Regd.No.OR-15-D-9821 and OR-15-D-9822 respectively.
2. The complainants elder brother and mother are dead since. The O.P. Bank changed the loan account No. after computerization to 10296134102 dt.01.2.2004 on which date a sum of Rs.1.74,344.24 paise was outstanding against the said loan. According to the complainant, he and his nephew were paying the loan dues of the O.P. bank regularly without fail. They are simple and less qualified persons. Taking advantage of their simplicity, some dishonest officers of the bank opene another fake account in their name number being 10296134113 without their knowledge and showed an advanced of Rs.95,200/- with usual interest of 14.5% on dt.15.7.2005.
3. The complainant further alleges that the O.P. bank in connivance of its staff have misappropriated the subsidy amount of the loan Account No.10296134113. Further submission of the complainant is that he has not purchased any power tiller nor he had applied for any loan to the O.P. , nor he had executed any document with any guarantor to obtain the said loan. Complainant paid Rs.44,000/-, Rs.43,800 and Rs.25,000/- in 3 installments totaling to Rs.1,12,800/- against the said loan account No.10296134113. The O.P. bank has adopted unfair trade practice and misappropriated huge amount from the complainant and his nephew. The O.P. willfully suppressed agreement copy of this new loan account No.10296134113 and did not provide any copy to the complainant.
4. The O.P. Bank continued to deduct money from the complainants account towards insurance of the original tractor and trailer from the year 2000 to 2011 every year, but failed to provide the copy of such insurance certificate to the complainant. According to the complainant, the O.P. has misappropriated the insurance money which was deducted from his account.
5. The complainant further alleges that he was cheated in various ways like on dt.13.02.2009, the O.P. bank charged Rs.51,931/- as single sided return. But actually this money was sanctioned by the Government of Odisha as drought relief. Instead of crediting the same amount, the money has been debited to the loan account. The O.P. bank has also charged on dt.15.03.2009 Rs.1,500/- towards inspection charges.
5. Though the complainant was paying money regularly, the O.P. bank gave false and frivolous demand notices threatening to repossess the assets on dt.01.8.2008, dt.14.5.2009 and dt.10.6.2010 and lastly in the month of October, 2011 issued Red Notice, where threatening was made by the O.P.to register a case against the complainant for recovery of the arrear dues amounting to Rs.14,245/-.
6. On receipt of this notice, the complainant enquired about the loan account and came to know about the irregularities and misappropriation of money by the O.P. bank and gave a complaint in writing on dt.29.10.2011. The O.P. bank took no action on the complaint and did not take any action against the officers, who are/were involved in the misappropriation. Finding no other alternative, complainant filed this case against the O.P. praying for the following relief
(a) Rs.1,49,018/- as refund of the money illegally obtained from the complainant by way of fraud.
(b) Rs.1,00,000/- as compensation for mental agony, harassment and torture suffered by the complainant.
( c) Rs.5,000/- being the cost of the proceeding including expenses of the complainant.
(d) Direction to close the loan account No.10296134113 running in the name of the complainant relating to finance of Power Tiller.
(e) Direction to close the loan account No.10296134102 running in the name of the complainant relating to finance of Tractor and Trailer after deducting the amount to which the O.P. bank is entitled to get.
(f) Direction to return all the document and papers pledged by the complainant to obtain the loan for Tractor and Trailer.
(g) Any other relief/reliefs as deemed fit and proper by the Honble Forum.
Complainant has filed Xerox copies of (1) Original pass book issued prior to the computerizationof the bank (2) Statement of account of 2 loan accounts No.102961324102 and 10296134113 (3) Counter foils of some receipts showing payment (4) Registration papers of the Tractor and Trailer and various notices (5) Death certificates of Ukia Mirdha and Parshuram Mirdha (6) His complaint to the O.P.bank dt.29.10.2011 (7) 3 counter foil receipts showing payment in to the Account No.10296134113.
7. After receipt of notice, O.P. appeared through Advocate and filed written version. The case of the O.P. is that Rs.3 lakhs was granted as loan vide Account No.10572158453 on dt.30.11.2000 against the joint members of the complainant. On dt.16.7.2005, the O.P. bank was computerized for which the loan account number was changed to 10296134102. It is further stated that the O.P. bank never opened any fake account in the name of the borrower.
8. According to the O.P., before computerization of the O.P. bank , the bank observed that on dt.27.2.2004, there were irregularities in payment by the borrowers against the loan account and the account became NPA. An amount of Rs.95,200/- was overdue upon the borrower by then for which the borrowers were asked vide demand notice to regularize the account. However, on dt.31.3.2005, one replacement account was opened in the name of the borrowers bearing Account No.0157215841300 on their commitment (borrowers-complainant to make repayment regularly) and accordingly, the overdue amount of Rs.95,200/- was debited against the rephasement Account No.0157215841300. Simultaneously, the same amount was transferred and shown credited against the borrowers loan account No.01572158453 on the same day i.e. dt.31.3.2005. This has been reflected in the statement of accounts after computerization and rephasement account number was changed to 10296134113.
9. The O.P. admits that the borrowers have not availed any loan to purchase power tiller. According to the O.P., the money paid by the borrowers in cash has been accounted for on the dates of deposits made by them, which has been reflected in the statement of accounts maintained by the O.P. in regular course of business transactions.
On the basis of the above , O.P. submits that the present complaint is not maintainable as there is no deficiency in service on the part of the O.P. and the case may be dismissed with costs to the O.P.
Documents filed by the O.P. are Xerox copies of-
- Account No.10296134113 showing Cr. Of Rs.821/- and Dr. of Rs.9,558/-. The drawing amount was Rs.95,200/- and the loan advance date was 31.3.2005.
- Account No.01670158453 cash credit(Agricultural) limit of Rs.40,000/-. Rate of interest 11.5% starting dt.22.6.2001.
- Account No.01572158453 term loan (Agricultural) limit Rs.3 lakhs.
- Account No.0157215845300 term loan (Agricultural) Limit Rs.95,200/-.
- Statement of account of Account No.10296134102 as on 31.5.2012 showing balance of Rs.23,012.24 paise) .
- Statement of Account of Account No.10296134113 as on 31.5.2012 showing balance of Rs.13,096.00).
10. Heard the learned counsels for both the parties and carefully have gone through the various
documents filed by the parties and placed on record. Since the dispute relates to several complicated accounting system, both the parties were asked to clarify on several points, but both parties failed to do so.
FINDINGS:
11. Admittedly, the complainant –borrowers took the loan from the O.P. bank and there are 2 running account one being No.10296134102 and the other is No.01572158453. Account No.0157218453 was opened on dt.30.11.2000 and it was subsequently changed to loan account No.10296134102 after computerization of the O.P. bank. Rephasement Acccount No.0157215845300 was subsequently changed to Account No.10296134113.
12. The complainant has not shown any document regarding the allegation that the O.P. bank has given a power tiller on loan to the complainant neither he has shown any document proving that the officers of the bank have misappropriated the subsidy amount. Hence, his allegation on this point fails.
13. The complainants allegation that the O.P. bank had debited Rs.51,931/- to the loan account, which was received by the bank being sanctioned by the Government of Odisha as drought relief. This is a general practice adopted by the banks to relieve the bank from the stressful management of assets and we find no fault in this regard against the O.P. bank.
13. The allegation that the O.P. as charged every year insurance premium which is illegal, but according to the terms and conditions of the agreement the bank can charge the same to the account of the borrower-complainant.
14. The other allegation regarding charging Rs.1,500/- inspection charge is a matter between the borrower-complainant and the bank, which the bank has charged as per the agreement condition.
15. Regarding opening of rephasement account, the O.P. bank has not clarified as to how a rephasement account was opened and what prompted its opening. The O.P. bank has also not taken any permission from the complainant or his family members-borrowers. Neither the complainant nor his family members executed any document regarding this loan. We gave our thoughtful consideration to this aspect and after going through the relevant account statement, we find that there was no necessity regarding taking another rephasement loan. The Advocate for the O.P. could not clarify as to why this rephasement loan account was necessitated and that too without the consent of the borrowers/complainant. The borrowers have complained vide their complaint dt.29.10.2011 and this complaint was not redressed by the O.P. to satisfy the borrowers-complainant. Complainant also alleges that they have paid more money into this account.
16. Taking into consideration the facts and circumstances discussed above, we came to the conclusion that the O.P. bank has committed deficiency in service and unfair trade practice by opening the rephasement account without the consent and knowledge of the borrowers-complainant. The bank also failed to provide the insurance papers to the borrower for which huge amount were realized from them during the long period of the loan.
17. Accordingly, the case of the complainant is partly allowed against the O.P. on contest. O.P. is directed to pay to the complainant Rs.20,000/- (Rupees Twenty thousand) towards compensation within a month from the date of order and regularize the loan account of the borrowers-complainant, failing which the awarded amount will carry interest 12(Twelve) per cent per annum from the date of order till the date of payment.
The O.P. bank is further directed to give insurance papers to all borrowers. If complainant has paid sufficient amount against both the loan accounts, then the O.P. bank should close the loan accounts and not harass the complainant any further.
