Complaint filed on:31-07-2023
Disposed on: 08-07-2024
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
DATED THIS THE 8th DAY OF July 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. 108/2023
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, ,
SBI, Railway station Road, Gubbi Town.
………..Opposite Party/s
(By Sri. Mohamed Afroze Ahamed, 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 of 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; in CC account Number 64064173020 & TL No 64045190865, 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 in the loan accounts numbers 64064173020 & TL No 64045190865, and to that effect the OP Bank has issued a loan clearance certificate on 10.08.2020 & 07.03.2021, stating that there is no due and the said loan accounts were closed. 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, when 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 the complainant is due to the OP for Rs 552475.00 & the complainant shocked and 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. 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 on 11.05.2023to the OP requesting to update the CIBIL and take proper steps to delete or remove the entry showing the outstanding balance of Rs 552475.00 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, SBI, Railway station Road, Gubbi Town, hereinafter called OP/OP bank.
4. After the complainant registered, the commission notice served to the OP Bank and in turn the OP bank appeared through its counsel and filed the version. Contending that, the complainant is not maintainable and the complainant suppressed the facts, that the complainant became NPA in loan accounts numbers 64064173020 & TL No 64045190865 and in spite of the several requests & demands not repaid the loan amount & accrued interest in time & finally on 16-04-2000, the complainant opted the OTS (one time settlement) to settled the said loan accounts and since these accounts settled under OTS, immediately not reflected in the CIBIL account of the complainant. The OP further contended that the complainant obtained loans in some other financial institutions after the NPA in loan accounts numbers 64064173020 & TL No 64045190865 settled in OTS scheme & even this OP sanctioned education loan for his son BE study after the complainant filed the loan application, but the complainant never approached the OP to get the release of the sanctioned education loan. As such there is no deficiency on the part of OP, hence the OP prayed to dismiss the complaint with cost.
5. The complainant & the OP filed their affidavit evidence, and the complainant produced six documents, which marked Ex.C-1 to Ex.C-6 & the OP produced some documents, but not marked.
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 OP?
- 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 & issued the legal notice to rectify the CIBIL report, but the OP Bank not responded nor advised the complainant to resolve the CIBIL disputes, which cause inconvenience & mental stress to the complainant, hence prays to allow the complaint.
10. The OP in his written arguments contending that. the complainant became NPA in loan accounts numbers 64064173020 & TL.No 64045190865 & finally on 16.04.2000, the complainant settled the said loan accounts under OTS, accordingly these details immediately not reflected in the CIBIL account of the complainant. The OP further contended that the complainant obtained loans in some other financial institutions after the NPA in loan accounts numbers 64064173020 & TL No 64045190865 settled in OTS scheme & even this OP sanctioned education loan for his son, BE study. The complainant stood as a Guarantor to some other individual party’s loans at different financial institutions 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 customer of the OP bank obtained the loan in accounts numbers 64064173020 & TL No 64045190865 (Ex C 1 & Ex C2), which were repaid & settled by the complainant by OTS (One time settlement Scheme) on 16-04-2020. The document produced by the OP reveals that, the complainant loan account No. is TL No 64045190865, wherein the OP sanctioned the loan on 30-06-2009 and the complainant became NPA on 01-02-2015 due to nonpayment of loan amount. The accrued interest and the balance loan amount was Rs 552475.00, interest payable was Rs 165082-00 & the complainant was total due of Rs.717557-00 to the OP. Finally the complainant in Bank adalat consented & opted the OTS scheme to settled the said loan by paying Rs 420000-00, accordingly on 16-04-2020 the complainant settled the said loan and the OP on 10-08-2020 (Ex.C1) & 07-03-2021(Ex.C-2) issued No due certificates to the complainant. It is clear from the above facts, the complainant repaid the loan amount as agreed in the Bank adalat, 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 receiving the legal notice dated:11.05.2023 and this Commission notice, not updated and rectified the said loan account which, leads to deficiency on the part of the OP. The OP on 22-09-2023 & 20-11-2023, in this commission prayed to settled the case by updating the CIBIL account of the complainant, but the CIBIL report produced by the OP, on 28-11-2023 @ 12.24.37 (time), the complainant loan accounts numbers 64064173020 & TL No 64045190865 not reflected as the complainant due to the OP, which proves that the OP updated the complainant CIBIL account after the complainant filed this complaint in this commission..
13. The complainant as alleged in the complaint, affidavit & in arguments, the complainant suffered lot in not getting loans from other banks and prayed to award Rs 50000.00 compensation due to not updating CIBIL by the OP. To prove this, complainant not produced believable evidences, on contrary CIBIL report produced by the OP, on 28.11.2023 @ 12.24.37 (time), the complainant obtained number of loans from other banks & also with this OP, after the loan account No, TL No 64045190865, settled under OTS on 16.04.2020, but, the OP compelled the complainant to approach this Commission without updating the CIBIL even after the legal notice (C-5) dated 11.05-2023 served. Hence, the complainant is entitled for compensation, accordingly it’s appropriate to award Rs.2000-00 and Rs.3,000-00 towards compensation & litigation expenses. In the result, we proceed to pass the following;
//:ORDER://
The complaint filed by complainant is allowed in part.
The OP is directed to pay Rs.2000-00 towards compensation and Rs.3,000-00 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.
