BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM

VAZHUTHACAUD, THIRUVANANTHAPURAM.

PRESENT

SRI. G. SIVAPRASAD : PRESIDENT

SMT. BEENAKUMARI. A : MEMBER

SMT. S.K.SREELA : MEMBER

O.P. No. 331/2005 Filed on 03.10.2005

Dated : 16.02.2009

Complainant:

P.S. Hallaj, Rationing Inspector, City Rationing Office (South), Thiruvananthapuram residing at T.C 6/2231, Akshara, Thuruvikkal P.O, Thiruvananthapuram.

Opposite parties:

1. The Branch Manager, City Branch 1, LIC of India, Pulimoodu, Thiruvananthapuram.

    

2. Divisional Manager, LIC of India, Pattom, Thiruvananthapuram.

This complaint is disposed of after the period so specified under the Consumer Protection Act, 1986. Though the case was taken up for orders by the predecessors of this Forum on 29.01.2007, the order was not prepared accordingly. This Forum assumed office on 08.02.2008. This O.P having been taken as heard on 31.01.2009, the Forum on 16.02.2009 delivered the following:

ORDER

SMT. BEENAKUMARI.A: MEMBER

Facts of the case are as follows: The petitioner filed the petition against the opposite parties for the realization of excess amount collected as interest i.e; six months interest for a loan closed after one month. The excess amount collected was Rs. 1,098/-. The complainant prays Rs. 10,000/- as compensation also.

The 1^st opposite party in this case is Branch Manager, City Branch, LIC and 2^nd opposite party is the Divisional Manager, LIC of India. The opposite parties filed version contending the case of the complainant. The main contention of the opposite parties are that the complainant entered into a contract with the opposite parties for a loan of Rs. 30,280/-, and the loan application provides that even if the loanee repays the amount fully within six months, the loanee is bound to pay interest for a minimum period of six months. The complainant repaid the amount on 26.05.2005. Hence the opposite parties are entitled to levy interest for six months. The opposite parties also stated that since there is written bilateral agreement accepting the terms of the loan, the complainant cannot act beyond it. In the loan application dated 27.04.2005 which is signed by the complainant, he has agreed to pay interest for 6 months on the amount of loan sanctioned, even on closing by full repayment before the expiry of 6 months from the date of loan. Hence the opposite parties prayed for the dismissal of the complaint with compensatory cost.

The complainant and opposite parties filed proof affidavit and produced documents. From the side of complainant 14 documents were produced and from the side of opposite parties 2 documents were produced. The complainant has been examined as PW1 and the opposite party cross examined him. The complainant argued that the act of the opposite party levying interest from him for a period of six months is not justifiable because he had repaid the loan amount before due date i.e; one month after receiving the loan. The loan period was 6 months. He availed the loan on 27.04.2005. He repaid the entire amount on 26.05.2005. The complainant stated that he has to pay only one month's interest i.e; Rs. 265/-, but the opposite parties levied Rs. 1,363/- as interest. As per the complainant the act of the opposite party is against justice.

The opposite parties argued that since there is written bilateral agreement accepting the terms of the loan, the complainant cannot act beyond it. In the loan application dated 27.04.2005 which is signed by the complainant, he has agreed to pay interest for six months on the amount of loan sanctioned even on closing by full repayment before the expiry of six months from the date of loan. Opposite parties produced the copy of loan application form and marked as Ext. D1. The complainant agreed the terms and conditions of the loan and thereafter received the loan. Therefore the complainant is bound to obey the conditions of the loan agreement. He cannot go beyond the terms. The opposite parties also produced policy documents conditions as Ext. D2. As per condition No. 8(ii) also it is stated that the interest is charged for a minimum period of 6 months and that para exhaustively deals with the condition of policy loan. It is evident that the complainant had full knowledge about the loan conditions. In Ext. D2 condition 13(iv) states that even if the loan is repaid within 6 months from the date of loan, interest of six months will be charged.

The complainant has produced 14 documents to prove his case. The documents are marked as Exts. P1 to P14. But the complainant has failed to prove his case that there is unfair trade practice or deficiency in service from the side of opposite party. From the evidence of both sides we find that the interest levied by the opposite parties from the complainant is justifiable according to the terms and conditions of the loan agreement between both the parties. Hence both parties are bound to act according to the terms and agreement of the contract. Hence there is no deficiency in service or unfair trade practice from the side of opposite parties. Hence the complaint is dismissed. No costs.

A copy of this order as per the statutory requirements be forwarded to the parties free of charge and thereafter the file be consigned to the record room.

Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the Open Forum, this the day of 16^th February 2009.

BEENAKUMARI. A : MEMBER

G. SIVAPRASAD : PRESIDENT

S.K. SREELA : MEMBER

C.C. No. 331/2005

APPENDIX

I COMPLAINANT'S WITNESS :

PW1 - P.S. Hallaj

II COMPLAINANT'S DOCUMENTS :

P1 - Copy of policy No. 781135773 dated 28.03.1994.

P2 - Copy of letter dated 27.04.2005 issued by 1^st opposite party.

P3 - Copy of loan repayment and loan interest receipt dated

26.05.2005 issued by 1^st opposite party.

P4 - Copy of letter dated 09.06.2005 issued by the complainant to

the 1^st opposite party.

P5 - Copy of letter dated 16.06.2005 issued by 1^st opposite party to

the complainant.

P6 - Copy of application for loan dated 27.04.2005.

P7 - Copy of letter dated 20.02.2003.

P8 - Copy of loan repayment and interest receipt dated 28.02.2004.

P9 - Copy of loan repayment and interest receipt dated 28.04.2004.

P10 - Copy of loan repayment and interest receipt dated 04.10.2004.

P11 - Copy of loan repayment and interest receipt dated 28.12.2004.

P12 - Copy of loan repayment and interest receipt dated 09.02.2005.

P13 - Copy of loan repayment and interest receipt dated 18.02.2005.

P14 - Copy of loan repayment and interest receipt dated 29.03.2005.

III OPPOSITE PARTY'S WITNESS :

NIL

IV OPPOSITE PARTY'S DOCUMENTS :

D1 - Copy of loan application dated 27.04.2005.

D2 - Copy of policy document.

PRESIDENT