Orissa

Kendujhar

CC/54/2022

Sumi Das - Complainant(s)

Versus

Branch Manager - Opp.Party(s)

G.N Jena

10 Nov 2023

ORDER

The fact of the case in nutshell is that the complainant has a cash credit facility account bearing Account No.12500083337 with a limit upto Rs. 10 lakh only sanctioned by the Syndicate Bank, Keonjhar branch which is merged in Canara Bank.The account was renewed every 2 years. On dt.04.03.2021 the account was renewed for the first time in the present OP bank on the impression that the renewal is for two years as before. But without giving prior notice or intimation to complainant for renewal of the account in each year the OP bank deducted excess interest from her loan account from April 2022 to August 2022 in fluctuate manner. On dt.07.07.2022 the OP 1 bank intimated to the complainant that the credit facility extended is already expired on dt.03.05.2022 and asked for renewal. After receiving  the said notice complainant requested OP1 though writing to allow her 60 days time. The complainant stated inher petition that the loan account is to be renewed within 90 days i.e from her lapse time but OPbank did not take steps and going on deducting higher amount of interest from loan account which is illegal and arbitrary. For the above complain the complainant sent a legal notice on dt. 19.08.2022 requesting to look into the matter and solve the problem and OP 1 replied that there is no cogent reason and denied the dispute. The OP1 did not solve the problem but remain adamant  for which the complainant was compelled to file this complain praying to refund the higher amount deducted that is Rs.25,000/- and Rs.50,000/- for mental harassment and Rs.10,000/- for cost of litigation. On the above allegation the complainant also filed an interim application bearing No.IA/10/2022 without finding any emergency the IA petition was not heard and the commission decided to pass order in final hearing of the case.

Following documents are filed by the complainant:-

1. Letter dt.07.07.2022 of the OP No.1 addressed to the complainant.

2. Letter Dt.18.07.2022 of the complainant to OP No.1 with a copy to OP. No.2 duly received by OP    

    No.1.

3. Statement of account to prove illegal deduction of excess interest from April 22 onwards.

4. Sanction Memorandum dt.05.03.2021 issue by OPs Bank.

5. Advocate notice on behalf of the complainant dt.19.08.2022 duly received byOP No.1 on      

    dt.20.08.2022 with postal receipt.

6. Reply of advocate notice by OP No.1 dt. 26.08.2022.

On the above allegation the case is admitted and notice issued to OPs. All the OPs appeared and filed their written version jointly. It is submitted in written version that the case is not maintainable and the matter has been suppressed by the complainant and the complainant has not come to the Hon’ble Commission in clean hands.Inpara 6 of the written version it is mentioned that the question of Syndicate bank merged with Canara bank since 2020 and sanctioned of cash credit facility by Syndicate bank during 2017-2018 never arise at all and para-2 is false, strongly denied by this OPs.  It is submitted that renewal of 2 years is false and completely denied. The OP has served demand notice and there were several telephonic conversation for renewal of said account. Question of deducting excess amount does not arise as because the bank is following guidelines. The grace period of 90 days for such loan account is not admitted by the OPs. The bank has not committed any deficiency of service so the complain having no merits be dismissed with heavy cost.

The OP relied on the following documents

1. Reply of advocate notice dt.19.08.2022

On the above pleadings the following points are determined to discuss and pass necessary order.

1. Whether the case is maintainable?
2. Whether any cause of action arises on this case?
3. Whether OPs have made any deficiency of service?
4. Whether the complainant is entitled to get any relief sought for?

FINDINGS

It is no doubt that the complainant has availed a cash credit facility of loan Rs.10,00,000/- having account No.125000083337 which was sanctioned in favour of Sumi Das, the complainantduring 2017-18. At the time of renewal of loan account it is automatically renewed for every 2 years but in this case after merged with Canara bank the renewal took place for every  year.It was the duty of OP bank toinform the matter to every customer but in this case OP bank deducted maximum amount at a higher rate of interest. The OP bank has not submitted any notice/message send to the customer/ complainant and not filed any document regarding the same. So bank has not applied the procedure with rule and regulation of bank. So the actions of OPs towards the complainant is definitely  deficiency of service for which the complainant being a senior citizen and widow was mentally harassed. The OPs are liable to pay compensation. So the case is maintainable and the complainant is entitled to get the relief. The cause of action arises on the day the dispute started. The OPs has deducted excess amount which is illegal. Hence order.

ORDER

The complain petition is allowed on contest against OPs. The OPs are directed to refund Rs.25,000/- with 9% interest P.A. to the complainant from the date of filing of this case till the realization.

The OPs are also directed to pay Rs.30,000/- for mental harassment and cost of litigation, if OPs are failed to comply the order within 45 days of receiving of this order they are liable to pay 9%  interest P.A. on total amount of Rs.55,000/- from the date of filing till realization.