BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 30th day of November, 2009

Present:

SRI.LAIJU RAMAKRISHNAN PRESIDENT

SMT.SHEELA JACOB MEMBER

SMT.BINDU SOMAN MEMBER

C.C No.176/2009

Between

Complainant : Sasidharan,

S/o Sivarajan

Padmalayam ,

Dymukku P.O,

Anakkuzhy Puthuval,

Kumily.

Idukki District.

(By Adv: Sijimon K. Augustine)

And

Opposite Party : The Branch Manager,

Union Bank of India

Kumily Branch,

Kumily,

Idukki District.

(By Advs: K.J.Cyriac & V.C.Sebastian)

O R D E R

SMT. BINDU SOMAN (MEMBER)
 

Complainant filed this petition against the deficiency of service of the opposite party Union Bank. Complainant is a resident of Anakkuzhi Puthuval in Kumily panchayath. He approached the opposite party for an education loan for his son. His son Arun Sasi got admission in Vinayaka Mission University in Ettumanoor for Hotel Management Course. As per the direction of the opposite party, complainant's son gave application in August 2008 and also produced the Personal Data, the Nativity Certificate, Annual Income Certificate, Residential Certificate and Course Certificate showing the details of course fees. All these documents are collected and produced according to the direction of the opposite party. After two weeks the opposite party informed the complainant to come and when he reached the Bank, the opposite party reported that he is not eligible for an education loan. Opposite party says that a loan under Agriculture Scheme can be granted and directed the complainant to collect the necessary documents. So the complainant spent Rs.2,800/- for collecting the necessary documents for an agricultural loan. Complainant presented all documents on 10.9.2008. Then the manager told that he cannot be granted an agricultural loan as the extent of the security property is not sufficient. Then the manager informed that a housing loan can be granted and for that complainant prepared an estimate of maintenance of his residential building from Tas Architects and Engineering Consultants, Kumily. For preparing estimate, he spent Rs.1,000/-. After verifying the estimate and documents, the opposite party had made a personal visit in the place of complainant. Complainant spent Rs.350/- as taxi fare in this purpose, then the Manager told him there is no road facility to the complainant's house, so housing loan cannot be granted. Complainant on 14.10.08 filed a complaint before the Hon'ble Udumbanchola Legal Services Authority, Kattappana. Thereafter on 16.10.08 complainant sent a written complaint to the opposite party's chief manager also. The Head Office of the opposite party sent a reply dated 20.10.2008. In the reply Head Office stated that they are enquiring the matter, but till this date the complainant received any report of the enquiry. The Udumbanchola Legal Service committee passed an order on 3.2.09 without allowing any relief prayed, stating that the property is situated in Periyar. All these are happened as a result of irresponsible and negligent act of opposite party. Hence this complaint filed.
 

2. Opposite party filed a written version. In the version opposite party denied loan application of complainant's son. In the version it is stated that no consumer relationship with the opposite party and the complainant. Opposite party admitted that complainant made a request for an educational loan but on verification of course prospectus they found that it was a certificate course and the bank have no provision to allow educational loan. Opposite party denied the facts of agricultural loan. In the version opposite party accepted Housing loan application. Opposite party had inspected complainant's property and found that there is no road facility to complainant's property, in this ground the opposite party rejected his Housing Loan Application also. Complainant with a Panchayath Member of Kumily and three others entered into the bank and threatened the opposite party, so this opposite party has filed a complaint before the local police. Complainant approached Peerumedu Taluk Legal Service Authority, Banking Ombudsman, Udumbanchola Legal Service Authority, all these petitions, were dismissed. Opposite party in his version stated that complainant have no right to get any relief from the opposite party.
 

3. The point for consideration is whether there was any deficiency in service on the part of the opposite parties, and if so, for what relief the complainant is entitled to?

4. The evidence consists of the oral testimony of PW1 and Ext. P1 to P9 marked on the side of the complainant and the oral testimony of DW1 and Ext.R1 to R5 marked on the side of the opposite parties.
 

5. The POINT :- Complainant is a poor agriculturist. He approached the opposite party for obtaining an education loan for the purpose of his son's education with the permission of opposite party. He spent more money and time for collecting all documents necessary for an education loan. Opposite party is a Nationalised Scheduled Bank having certain strict rules for providing loan. PW1 examined and marked Exts. P1 to P9. Exhibits reveals an idea that the complainant, a poor agriculturist have a good intention to take an education loan for his son. Ext. P1 is the copy of loan application. Ext. P2 is a petition filed in Lok Adalath, Kattappana. Ext. P3 is the order No.A.P.131/08 dated 3.2.2009 before the Taluk Legal Service Committee, Udumbanchola. Ext.P4 is the reply given by Union Bank Regional Office, Thiruvananthapuram. Ext. P5 is the reply letter from Banking Ombudsman. Ext. P6 (series) are the documents collected by the complainant for the purpose of Education loan. Ext. P7 is the documents showing the records necessary for an agricultural loan. Ext. P8 is a document of complainant produced in the opposite party Bank for the purpose of Housing Loan. Ext P9 is a reply version of opposite party filed before Udumbanchola Taluk Legal Service Authority. DW1 examined and marked Exts. R1 to R5. Ext. R1 is a circular of opposite party Union Bank. Ext. R2 is the application form of opposite party for educational loan. Ext.R3 is an order copy from Taluk Legal Service Committee, Peerumedu. Ext.R4 is receipt copy issued by Sub Inspector of Kumily Police Station.

On verification of his documents, opposite party's manager found that it was a distant education programme of a certificate course. As per the Norms of the Bank, educational loan application cannot consider. In the deposition of PW1 and DW1 we understood that DW1 tried to help the complainant to provide any loan either a Housing loan or an Agricultural loan, but all attempts are failed. Issuing loan is a banking function, for which they have their own rules and conditions. Here the complainant took an attempt to obtain loan, for which he spent money and also his time, moreover we consider his mental agony also.
 

Hence the petition allowed. Opposite party is directed to pay Rs.2500/- as compensation for the inconvenience caused to him and Rs.1,500/- as cost of this petition within 30 days of receipt of a copy of this order, failing which the amount shall carry 12% interest per annum from the date of default.
 

Pronounced in the Open Forum on this the 30th day of November, 2009 Sd/-

SMT. BINDU SOMAN(MEMBER)

Sd/-

I agree SRI. LAIJU RAMAKRISHNAN(PRESIDENT)

Sd/-

I agree SMT. SHEELA JACOB(MEMBER)

APPENDIX

Depositions :

On the side of Complainant :

PW1 - Sasidharan

On the side of Opposite Party:

DW1 - V. Biju

Exhibits :

On the side of Complainant :

Ext.P1 - Copy of Application form for education loan.

Ext.P2 - Copy of petition filed before the Lok Adalath by the complainant dated 14.10.08

Ext.P3 - Order Number A.P.131/08 dated 3^rd day of February, 2009, before the Taluk Legal Services Committee, Udumbanchola.

Ext.P4 - Copy of reply letter given by the Chief Manager, Union Bank of India, Thiruvananthapuram, to the complainant.

Ext.P5 - Reply letter from the Banking Ombudsman No.OB O(T)/5807/10539/2008 – 09 dated 17.2.2009 on complainant's petition.

Ext.P6(1) - Application dated 20.8.2008 by Arun Sasi, son of the complainant, given to the bank.

Ext.P6(2) - Nativity Certificate dated 27.8.2008 issued by the Village Officer, Periyar.

Ext.P6(3) - Income Certificate dated 27.8.2008 issued by the Village Officer, Periyar.

Ext.P6(4) - Course Certificate dated 20.8.2008 issued by the Director, S.M.S School of Management Studies, Ettumanoor, Kottayam.

Ext.P6(5) - Copy of Affiliation Certificate issued by the Bharat Sevak Samaj, Thiruvananthapuram,to School of Management Studies, Ettumanoor, Kottayam

Ext.P6(6) - Copy of Approval Certificate issued by the Director, Vinayaka Mission Universit , Salem, to School of Management Studies, Ettumanoor, Kottayam.

Ext.P6(7) - Copy of Higher Secondary Examination Certificate (Class XII) of Arun Sasi, son of the complainant.

Ext.P6(8) - Copy of Secondary School Leaving Certificate of Arun Sasi, son of the complainant.

Ext.P6(9) - Land tax receipt of Periyar Village Office, for tax payment by the complainant.

Ext.P6(10) - Cash receipt of School of Management Studies, for fee of admission and application form paid by Arun Sasi, son of the complainant.

Ext.P6(11) - Copy of voter's Identity Card of the complainant.

Ext.P6(12) - Copy of 1^st page of Ration Card of the complainant

Ext.P6(13) - Copy of 2^nd page of Ration Card of the complainant

Ext.P6(14) - Ownership Certificate issued from Kumily Grama Panchayat dated 18.8.2008.

Ext.P7(1) - Copy of Pattayam No.LA-20/07/PYR

Ext.P7(2) - Copy of Certificate of Genuinity from Tahasildar, Peerumedu.

Ext.P7(3) - Copy of ownership certificate of land issued from Periyar village office.

Ext.P7(4) - Copy of Possession and non-attachment Certificate issued by Village Officer, Periyar.

Ext.P7(5) - Copy of land tax receipt of Periyar Village Office, for tax payment by the Complainant.

Ext.P7(6) - Copy of Income Certificate issued by Village Officer, Periyar.

Ext.P7(7) - Copy of the location sketch of the land owned by the complainant issued by the Village Officer, Periyar.

Ext.P8 - Copy of estimate and plan for maintenance and balance work of the residential building of the complainant prepared by P.N. Sasikumar, Engg. Consultant, Kumily.

Ext.P9 - Copy of the reply version of the opposite party filed before Udumbanchola TalukLegal Service Authority.

On the side of the opposite party:

Ext.R1 - Circular of Union Bank of India about Educational Loans

Ext.R2 - Application Form for Union Education.

Ext.R3 - Copy of the order of Taluk Legal Services Committee, Peerumedu, in the Adalath Petition filed by the complainant.

Ext.R4 - True copy of the petition receipt issued by the Sub Inspector of Kumaly Police Station.

Ext.R5 - Union Education - Objective & Purpose.