Tamil Nadu

South Chennai

185/2006

G.Thirunavukarasu - Complainant(s)

Versus

Citi Bank, N.A. and another - Opp.Party(s)

A.Palaniappan

02 May 2018

ORDER

                                                                        Date of Filing  : 20.03.2006

                                                                          Date of Order : 02.05.2018

 

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

                 TMT. K. AMALA, M.A., L.L.B.                                : MEMBER-I

 

C.C. No.185 /2006

DATED THIS WEDNESDAY THE 02^ND DAY OF MAY 2018

                                 

G. Thirunavukarasu,

No.16,  Sri Nava Siva Nivas Pallavan Street,

V.O.C. Nagar,

Pammal,

Chennai – 600 075.                                                .. Complainant.                                                        ..Versus..

1. M/s. City Bank, N.A.,

Represented by its Manager,

Personal Loan Division,

No.2, club House Road,

Chennai – 600 002.

 

2. City Bank N.A Global Consumer Bank,

Represented by the Regional Credit Officer

P.O. Box No.4830,

Anna Salai P.O.,

Chennai – 600 002.                                             ..  Opposite parties.

          

Counsel for complainant           :  M/s. A. Palaniappan & another

Counsel for Opposite party       :  Mr. R. Balaji & another

 

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act, 1986 seeking return of all the post dated cheques, promissory note and other documents given by the complainant and to pay a sum of Rs.5,00,000/- towards compensation for mental agony, hardship, financial loss and sufferings and to pay the cost of the complaint.

1.    The averments of the complaint in brief are as follows:

         The complainant submits that he availed personal loan bearing No.L58MMA1740402 from the opposite party after due execution of loan agreement along with a Demand Promissory Note and post dated cheques towards EMI.   The complainant submits that due to financial crises, the complainant was not able to pay the EMI regularly and there was a default in the payment and the opposite party bank had charged exorbitant rate of interest along with the penal interest.  The complainant submits that the opposite party gave  a proposal of one time settlement plan vide letter dated:28.01.2004.  The complainant also accepted for such one time settlement of the loan for Rs.33,000/- and paid the amount on 29.01.2004. Thereby, the entire loan amount was settled by the complainant was also accepted by the opposite party.   The complainant submits that after settling the amount in full, the opposite party issued legal notice, dated:06.05.2004, 10.07.2004, 03.06.2005, 21.11.2005 to pay Rs.55,163.81, to pay Rs.3260/- vide cheque bearing No.086866 Dated:01.04.2004, to pay the amount covered by cheque of Rs.3,260/- bearing No.086879 Dated:01.05.2005 and to pay the amount covered by cheque of Rs.3,260/- bearing No.086885 dated:01.11.2005 for the returned cheques wrongly for which, due reply notice dated:18.05.2004, 08.09.2004, 09.06.2005 and 03.12.2005  were issued  by the complainant.    The complainant submits that even after that, the opposite party has not come forward to withdraw the false contentions raised in the legal notices.    Further the complainant submits that on several occasions, the opposite party bank engaged collection agents/ hooligans and threatened the complainant with filthy language.    Further the complainant submits that, the opposite party nagging and harassing the complainant approached the District Legal Service Authority, Chennai and filed petition in case no.896/2005 which was closed on 18.10.2005 since the matter was settled.    Evenafter, such all process the opposite party has not returned the unused cheques, promissory notes and other documents related to the loan and closure report of the loan which caused great mental agony to the complainant.  Hence the complaint is filed.

2.      The brief averments in the written version filed by the opposite parties is as follows:

The opposite parties specifically denies each and every allegation made in the complaint and puts the complainant to strict proof of the same.  It is admitted by the opposite parties that, the complainant paid a sum of Rs.33,000/- towards settlement of the loan on 29.01.2004.  Further the opposite parties submit that the complainant failed to give instructions to the opposite party bank which is fully automated for such closure report.    Hence due to inadvertence, the opposite party issued legal notices.  Further the complainant has not referred to any cogent material or convincing evidence on record to establish any loss or injury alleged to have been suffered by the complainant.  In the absence of such proof of claim cannot be sustained and has to be rejected totally.  Hence the compliant is liable to be dismissed.

3.   In order to prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A16 are marked.  Proof affidavit of the opposite parties filed and no documents filed and marked on the side of the opposite parties.

4.      The points for consideration is:-

1. Whether the complainant is entitled to get return of the post dated cheques, promissory note and other documents submitted for availing loan as prayed for?

2. Whether the complainant is entitled to a sum Rs.50,000/- towards compensation for mental agony with cost as prayed for?

5.      On point:

Heard both records.  Perused the records namely complaint, written version, proof affidavits, documents, written arguments of opposite party etc.  Admittedly the complainant availed personal loan from the opposite party after due execution of loan agreement along with a Demand Promissory Note and post dated cheques towards EMI.  The learned Counsel for the complainant contended that due to financial crises, the complainant was not able to pay the EMI regularly.  Hence, the complainant was a defaulter.   Whileso, the opposite party gave  a proposal of one time settlement plan vide letter dated:28.01.2004 as per Ex.A1.  The complainant also accepted for such one time settlement of the loan for Rs.33,000/- and paid the amount on 29.01.2004 by Ex.A2 & Ex.A3.  Thereby, the entire loan amount was settled is also accepted by the opposite party.  The learned Counsel for the complainant further contended that after settling the amount in full, the opposite party issued legal notice, dated:06.05.2004, 10.07.2004, 03.06.2005, 21.11.2005 to pay Rs.55,163.81, to pay Rs.3260/- vide cheque bearing No.086866 Dated:01.04.2004, to pay a sum of Rs.3,260/- for cheque bearing No.086879 Dated:01.05.2005 and to pay Rs.3,260/- for cheque bearing No.086885 dated:01.11.2005 for the returned cheques wrongly vide Ex.A4, Ex.A6, Ex.A9 and Ex.A12, for which, due reply notice dated:18.05.2004, 08.09.2004, 09.06.2005 and 03.12.2005  vide Ex.A5, Ex.A7, Ex.A10 & Ex.A13 issued.   Even after that, the opposite party has not come forward to withdraw the false contentions raised in the legal notices.  

6.     Further the contention of the complainant is that, on several occasions, the opposite party bank engaged collection agents/ hooligans and threatened the complainant with filthy language.  The opposite party nagging and harassing the complainant, approached the District Legal Service Authority, Chennai and filed petition in case no.896/2005 which was closed on 18.10.2005 since the matter was settled.    Even after, such all process the opposite party has not returned the unused cheques, promissory notes and other documents related to the loan and closure report of the loan which caused great mental agony to the complainant.   The complainant is claiming a sum of Rs.5,00,000/- towards compensation for mental agony.  The learned Counsel for the opposite party contended that as per Ex.A2 & Ex.A3, the complainant paid a sum of Rs.33,000/- towards settlement of the loan on 29.01.2004.  Further the contention of the opposite party is that the complainant failed to give instructions to the opposite party bank which is fully automated for such closure report.    Hence due to inadvertence, the opposite party issued legal notices.  But on a careful perusal of records, even after receipt of the reply notice from the complainant and notice from the District Legal Service Authority, Chennai the opposite party bank has not come forward to issue loan closure certificate along with the unused cheques, promissory note and other documents prove the deficiency of service.  Considering the facts and circumstances of the case this  Forum is of the considered view that, the opposite party shall return the unused cheques, promissory notes, and other documents if any to the complainant with a compensation of Rs.15,000/- towards mental agony with cost of Rs.5,000/-.

  In the result, this complaint is allowed in part.  The  opposite parties 1 & 2 are jointly and severally directed to return the unused cheques, promissory notes and other documents if any to the complainant and to pay a sum of Rs.15,000/- (Rupees fifteen thousand only) towards compensation for mental agony with cost of Rs.5,000/- (Rupees Five thousand only) to the complainant.

The above amounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 02^nd  day of May 2018. 

 

MEMBER –I                                                                       PRESIDENT

COMPLAINANT SIDE DOCUMENTS:

		Copy of proposal of one time settlement plan
		Copy of the demand draft for the payment of Rs.33,000/- dated:29.01.2004
		Copy of receipt endorsing the full and final settlement
		Copy of legal notice issued on behalf of the opposite party bank
		Copy of reply notices issued by the complainant to the opposite party
		Copy of legal notice issued on behalf of the opposite party bank
		Copy of reply notices issued by the complainant to the opposite party
		Copy of legal notice issued by the complainant to the opposite party
		Copy of legal notice issued on behalf of the opposite party bank
		Copy of reply notices issued by the complainant to the opposite party
		Copy of legal notice issued on behalf of the opposite party bank
		Copy of reply notice issued by the complainant to the opposite party
		Copy of legal notice issued by the complainant to the opposite party
		Copy of legal notice issued by the opposite party to the complainant
		Copy of reply notice issued by the complainant to the opposite party

 

OPPOSITE  PARTIES SIDE DOCUMENTS:  NIL

 

MEMBER –I                                                                       PRESIDENT