By Smt. PREETHI SIVARAMAN.C, MEMBER
1. Complaint in short is as follows:-
Complainant is the owner of V.K.M. Wood Industries. For starting the above shop, complainant applied for a loan as per PMEG Programme. After receiving the permission from Khadhi Board, on 22/03/2018 opposite party sanctioned a loan to complainant with an interest at the rate of 10.10 % per annum as per loan No.0855727000006. Complainant got Rs. 4,50,000/- as loan on 22/03/2018 and the rate of interest is 10.10.% per annum. While repaying the loan amount, complainant came to know that the interest rate was 15.65% instead of 10.10%. Complainant informed this to opposite party Bank and they assured to complainant that they will check the interest rate and they will rectify the defect. Despite so many requests and complaints before the bank nothing happened. So, he filed a written complaint directly to the Manager. Thereafter from September 2021, the Bank rectified the defects.
2. Due to the negligence from the side of opposite party, complainant had lost Rs. 48,625/-. The opposite party bank had illegally collected the said amount from complainant. While pointing out that aspect before the Manager and other staffs of opposite party bank, they assured to complainant that after receiving the permission from Head Office they will adjust the above amount with interest in complainant’s loan account. But bank had not taken any steps to rectify the defects by stating that no permission is granted or received from the Head office yet. Thereafter, the bank informed the complainant that on September 2021, they informed the above defect to the Head office. But the complainant so far did not receive the amount of Rs. 48,625/- into his account. When complainant approached the opposite party for closing the loan, the opposite party closed the loan without accounting Rs.48,625/- and after receiving the balance amount from the complainant. As per the loan agreement complainant is entitled to get a refund of Rs. 48,625/- with interest. Due to the deficiency in service from the side of opposite party, complainant had lost Rs. 48,625/- and complainant is forced to repay the loan before its period. The premature closure of loan affected his business and resulted financial crisis and difficulties.
3. Moreover, opposite party did not credit duly the government subsidy in to the loan account of complainant and resultantly, the interest rate was shoot up and it caused huge financial loss to the complainant. Opposite party charged some additional charges also from the complainant. Complainant submitted that while he approached on 14/03/2022 to close the loan, it was told the balance amount as Rs. 8,405/- and later on 02/04/2022 it was enhanced to Rs.29,788/-, for which there is no explanation from the side of opposite party. Hence, the complainant submitted that there is deficiency in service and unfair trade practice from the side of opposite parties for which he is entitled reasonable amount as compensation.
4. The prayer of the complainant is that, he is entitled to get Rs. 48,625/- the additional amount charged by the opposite party as interest, Rs.21,383/- as the amount illegally collected from complainant when he approached the bank for closing his loan, Rs. 1,00,000/- as compensation on account of deficiency in service and unfair trade practice on the part of opposite party and thereby caused mental agony, physical hardships and sufferings to the complainant and Rs. 10,000/- cost of the proceedings.
5. On admission of the complaint notice was issued to the opposite party and they received notice on 28/07/2022. But opposite party appeared before the Commission through their counsel and filed version and vakkalath only on 11/10/2022 which is beyond the statutory period of 45 days. Hence, opposite party set exparte.
6. In order to substantiate the case of the complainant, he filed an affidavit in lieu of Chief examination and the documents he produced were marked as Ext. A1 to A5. Ext.A1 is the statement of account for General and Agri advances for the period from 01/01/2012 to 02/04/2022 dated 02/04/2022. Ext.A2 is the statement of accounts for General and Agri advances for the period from 01/01/2012 to 18/02/2022 dated 18/02/2022 Ext.A3 is the Loan interest statement dated 14/07/2021. Ext.A4 is the copy of the receipt–counter foil received by complainant while paying Rs. 29,788/- at opposite party Bank. Ext. A5 is the Statement of account of complainant dated 03/11/2022.
7. Heard the complainant and perused the affidavit and documents filed by complainant. The allegations against opposite party are proved by the unchallenged evidence of complainant. There is no contra evidence in this matter. Moreover, complainant produced five documents which are very supportive to prove his case. Hence the Commission finds that there is deficiency in service and unfair trade practice on the part of the opposite party as alleged in the complaint. Hence, we allow this complaint holding that opposite party is deficient in service.
8. We allow this complaint as follows: -
The opposite party is directed to refund Rs.48,625/-(Rupees Fourty eight thousand six hundred and twenty five only) and also Rs.21,383/-(Rupees Twenty one thousand three hundred and eighty three only) to the complainant on account of excess amount collected from the complainant.
The opposite party is also directed to pay Rs.50,000/- (Rupees Fifty thousand only) as compensation to the complainant on account of deficiency in service, unfair trade practice and thereby caused inconvenience, hardships, mental agony and financial loss sustained to the complainant.
The opposite party is directed to pay Rs.5,000/- (Rupees Five thousand only)as cost of the proceedings.
If the above said amount is not paid to the complainant within 30 days from the date of receipt of copy of this order, the opposite party is liable to pay the interest at the rate of 12% per annum on the said amount from the date of order till realisation.
Dated this 27thday of March, 2023.
MOHANDASAN K., PRESIDENT
PREETHI SIVARAMAN C., MEMBER
MOHAMED ISMAYIL C.V., MEMBER
APPENDIX
Witness examined on the side of the complainant : Nil
Documents marked on the side of the complainant : Ext.A1to A5
Ext.A1 : Statement of account for General and Agri advances for the period from
01/01/2012 to 02/04/2022 dated 02/04/2022.
Ext.A2 : Statement of accounts for General and Agri advances for the period from
01/01/2012 to 18/02/2022 dated 18/02/2022
Ext.A3 : Loan interest statement dated 14/07/2021.
Ext.A4 : Copy of the receipt –counterfoil received by complainant while paying Rs.
29,788/- at opposite party Bank.
Ext. A5 : Statement of account of complainant dated 03/11/2022.
Witness examined on the side of the opposite party : Nil
Documents marked on the side of the opposite party : Nil
MOHANDASAN K., PRESIDENT
PREETHI SIVARAMAN C., MEMBER
MOHAMED ISMAYIL C.V., MEMBER
