Complaint filed on:26-07-2023
Disposed on: 15-02-2024
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
DATED THIS THE 15th DAY OF FEBRUARY, 2024
//:PRESENT://
SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT
SRI.KUMARA.N, B.Sc. (Agri), LLB., MBA., MEMBER
SMT.NIVEDITA RAVISH, B.A., LLB.(Spl)., LADY MEMBER
CONSUMER COMPLAINT NO. 109/2023
M/s Prakruthi Food Processing Unit,
Represented by its Prop. Shivananjappa,
S/o Late Lingappa, A/a 55 years,
R/at Ammanagatta, Kasaba Hobli,
Gubbi Taluk, Tumakuru Dist.
……….Complainant
(By Sri. C.N.Hanumantharajau, Advocate)
V/s
The Branch Manager, Bank of Baroda,
Siddagangamutt Branch, Tumkur.
Karnataka.
………..Opposite Party/s
(By Sri. M.Balakrishna Bhat, Advocate)
//:O R D E R://
BY SRI. KUMARA .N - MEMBER
This complaint has been filed by the complainant to direct the OP to take proper steps to delete or remove the entry showing the outstanding balance in the CIBIL in respect of the account No.74120500000034 belonged to the complainant or update the CIBIL and further prays to direct the OP to pay cost, advocate fee and Rs.50,000-00 as compensation for mental agony and harassment.
2. It is the case of complainant that, the complainant had availed loan from the OP Bank for his business, which is running in the name and style of M/s Prakruthi Food Processing Unit for his livelihood. It is further contended that the complainant had paid the entire loan amount with accrued interest, and to that effect the OP Bank has issued a certificate on 25.08.2022 stating that there is no due in respect of the C.C. account No.74120500000034 and the said account was closed on 08.08.2022. The complainant further contended that the complainant is doing this business in the name and style of Prakruthi Food Processing Unit and frequently he need financial assistance for his business purposes and therefore he intends to avail a loan from other financial institutions, during that time, he enquired about CIBIL and he obtained necessary particulars from the concerned authority, then he came to know that, though the complainant had re paid the entire loan amount along with interest, but CIBIL shows that he is due to the above said amount in the loan account. Then the complainant approached the OP Bank several times and requested the officials of the OP bank to update the CIBIL and also he had made several requisitions to them and also requesting them to take proper steps to delete or remove the entries showing outstanding balance in the complaint CIBIL account, but the OP bank have not taken any proper steps and they have totally neglected to do their duty and due to negligent act of the Bank, the complainant is suffering a lot and he is not getting any loan from any financial Institutions, now the business of the complainant is under loss, it is due to the negligent act of the OP bank and it amounts to deficiency of service. Therefore, the complainant got issued legal notice to the OP requesting to update the CIBIL and take proper steps to delete or remove the entry showing the outstanding balance in the CIBIL, but the OP bank have not taken any action or issued reply notice. Hence, this complaint.
3. In this case opposite party was the Branch Manager, Bank of Baroda, Siddagangamutt Branch, Tumkur. Karnataka, hereinafter called OP/OP bank.
4. After the complainant registered, the commission notice served to the OP and in turn the OP bank appeared through its counsel and filed the version. But the version field by the OP came to be rejected by considering the Hon’ble Apex Court decisions and Section 38(3)(a) of C.P. Act.
5. The complainant has filed his affidavit evidence. Sri. Pradip Kumar Singha, Branch Manager, has filed his affidavit evidence on behalf of OP.
6. We have heard the arguments of complainant. The OP filed written arguments, but failed to address the oral arguments in spite of sufficient time is granted.
7. The points that would arise for determination are as under;
- Whether the complainant proves the deficiency of service on the part of OPs?
- Is complainant entitled to the relief sought for?
- Our findings to the aforesaid points are as under:
Point No.1: Partly in the Affirmative
Point No.2: As per the final order.
//:REASONS://
Point Nos. (1) and (2):-
9. The complainant’s counsel argued that the complainant approached the OP/Bank several times to rectify the CIBIL report, but the OP bank not responded nor advised the complainant to resolve the CIBIL disputes, which cause inconvenience to the complainant to avail loan in other banks. The attitude of OP bank affected the complainant and prays to allow the complaint.
10. The OP in his written arguments contending that CIBIL is adopted by all nationalized and schedule banks including private sector banks also to avoid any mis-information or false information from the borrowers. It is further contended that while availing the loan, the entire loan transactions along with KYC details will be uploaded to the CIBIL with the consent of the borrower and in the same manner, the closure of the loan account will also auto uploaded to the CIBIL and history of all loans will kept permanently which cannot removed at any point of time and as such all credit information of the complainant is also uploaded automatically and the OP bank is nothing to do with deletion of any credit information. The issue of the CIBIL score is only vest with the said CIBIL and this OP has no manner of commanding rights or powers to manage or control the CIBIL score. The delay or nonpayment of regular EMI of loan will leads to decrease in CIBIL score and history of CIBIL information cannot be deleted or modified by the OP at any point of time. The OP further contended that the CIBIL score of the OP is 726 as on 04.08.2023 and the complainant has availed a loan of Rs.12,50,000-00 on 21.03.2023 and allegation that the complainant is unable to get loans from other banks is false and baseless and the complainant is put to strict proof of the said allegations. The complainant stood as a Guarantor to some other individual party’s loan at Vijaya Bank and the nonpayment of regular outstanding loan will also cause decrease in CIBIL score, as such the OP has not caused any deficiency of service to the complainant at any point of time and hence prays to dismiss the complaint.
11. Credit Information Bureau of India Limited (CIBIL), which is India’s first Credit Information Company, collects and maintains the records of an individual’s and non-individual’s (commercial entities) credit related transactions such as loans and credit cards. These records are provided by banks and other lenders on a monthly basis to the Credit Bureau. Using this information, a Credit Information Report (CIR) and CIBIL Score is developed. Trans Union CIBIL Limited (formerly Credit Information Bureau (India) Limited) was incorporated based on recommendations made by the RBI Siddiqui Committee. If any correction, the Bank or lending institution cannot make any changes in the credit report directly. The respective bank or financial institution should authorize the Credit Information Bureau of India Limited to make the changes.If a closed account is showing / reflected in CIBIL report, reach out to the reporting bank / financial institution for the desired changes in your report.
Consumer Dispute Resolution; If any disputes, regarding information in the CIBIL report, one can initiate a dispute online with CIBIL to address inaccuracies, account ownership, and duplication of information appearing in your credit report, which is a FREE service offered by CIBIL.
12. In this case, the OP admitted the fact that the complainant being a consumer of the OP bank obtained the loan in CC account 74120500000034, which was repaid by the complainant along with interest and the said account was closed on 08.08.2022. The OP denied all other averments in the complaint including the fact that the complainant served the legal notice dated:12.05.2023. To prove this, complainant not produced believable documents to show that the said legal notice served to the OP bank. It is clear from the above facts, that the complainant being a consumer of bank after obtained the loan and repaid the entire loan amount along with interest, when the complainant observed still that entry reflected in the CIBIL report, it’s the bound duty of the OP bank to resolve the issues by updating the bank loan repaid details and sending the same to the CIBIL Authorities, but the OP Bank in spite of legal notice and this Commission notice served, not updated and rectified the said loan account which, leads to deficiency on the part of the OP. Hence, the OP bank is liable to rectify the defects in the CIBIL report in coordination with the CIBIL Authorities.
13. The OP compelled the complainant to approach this Commission. Hence, the complainant is entitled for compensation of Rs.10,000-00 towards mental agony suffered by the complainant and Rs.8,000-00 towards litigation expenses. In the result, we proceed to pass the following;
//:ORDER://
The complaint filed by complainant is allowed in part.
The OP bank is directed to rectify the defects in the CIBIL report in coordination with the CIBIL Authorities.
Further, the OP is directed to pay Rs.10,000-00 towards compensation and Rs.8,000-00 towards litigation expenses to the complainant.
The OP is directed to comply the above order within 45 days from the date of receipt/knowledge of the order. Failing which, the payable amount under the order shall carry interest @ 10% PA after lapse of 45 days to till realization.
Supply free copy of this order to both parties.
