Haryana

Karnal

215/2013

Renu W/o Sunil Panwar - Complainant(s)

Versus

Corporation Bank - Opp.Party(s)

S.K. Bhargava

18 Nov 2014

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL  FORUM KARNAL.

 

                                                          Complaint No.215 of 2013

                                                          Date of instt.30.04.2013

                                                          Date of decision:06.04.2015

 

Renu wife of Shri Sunil Panwar resident of house No.927, New Housing Board colony, Karnal.

                                                                  ……..Complainants.

                   Vs.

 

Corporation Bank, GT Road, Opposite old Tehsil Mehfil Building, Karnal through its Branch Manager.

                                                                  …..Opposite Party.

 

                                      Complaint u/s 12 of the Consumer

                                      Protection Act.

 

Before          Sh.Subhash Goyal……..President.

                   Smt.Shashi Sharma……Member.

 

 

 

Present:-      Sh.S.K.Bhargava  Advocate for the complainant.

                   Sh.Souresh Khanna  Advocate for the OP.

ORDER

 

                        The complainant has filed the present complaint u/s 12 of the Consumer Protection Act  against the OP on the alleging deficiency in services on the allegations that  the complainant applied for loan of Rs.8,00,000/-  for payment of balance sale consideration of the plot of  HUDA and for raising construction but the loan was sanctioned to the tune of Rs.6,80,000/- which was to be repaid  alongwith interest @ 9.25per cent per annum.  However, the OP took signatures of the complainant on   some blank papers and  initially a sum of Rs.2,60,000/- was paid to the Estate Officer, HUDA, Karnal and executed conveyance  deed dated 12.4.2010 and thereafter the OP paid a sum of Rs.75,000/- on 19.4.2010 and thereafter no amount was paid by the OP in order to raise construction of the house and ultimately the account of the complainant was declared as NPA.  The complainant deposited a sum of Rs.3,00,000/- on 7.3.2013 and Rs.5000/- on 16.3.2013 and  Rs.41,000/- on 30.3.2013 and thereafter the complainant came to know that the OP has received a sum of Rs.1,47,062/- and Rs.1,02,595/- in  an illegal manner while calculating interest @ Rs.18.50 per annum and no dues certificate has not been issued. The complainant has prayed for  directing the OP to refund the excess amount and  to issue No Dues Certificate  alongwith compensation on account of harassment. The complainant has also tendered her affidavit in support of the averments made in the complaint alongwith some other documents which would be discussed at the relevant stages.

 

2.                On notice the OP appeared and filed written statement raising preliminary objections that  the present complaint was not maintainable; that the complainant has got no cause of action for filing the present complaint.

 

                   On merits, it was contended that the original documents have already been returned and since the complainant has not complied with the terms and conditions of the loan and as such account of the complainant was declared as NPA. The OP has denied recovery of excess amount as alleged and has asserted that the interest has been recovered as per RBI guidelines.  As per the case of the OP the loan was given for raising house construction but the complainant has failed to submit any sanctioned site plan and as such has not  raised construction over the plot and thus  interest @ 18.25% per annum has been charged instead of Rs.9.25% per annum and as such there was no deficiency in services on the part of the OP. Sh.Munish Chopra Branch Manager, of the OP has also tendered his affidavit in support of the contentions made in the written statement.

 

3.                We have heard the learned counsel for the parties and have gone through the case file very carefully.

 

4.                Therefore, from the facts and circumstances of the case, evidence on the file and the arguments advanced by the learned counsel for the parties, it emerges that  that the complainant has filed the present complaint against the OP alleging deficiency in services on the ground that the complainant applied for loan of Rs.8,00,000/-  for payment of balance sale consideration of the plot of  HUDA and for raising construction but the loan was sanctioned to the tune of Rs.6,80,000/- which was to be repaid  alongwith interest @ 9.25per cent per annum.  However, the OP took signatures of the complainant on   some blank papers and  initially a sum of Rs.2,60,000/- was paid to the Estate Officer, HUDA, Karnal and executed conveyance  deed dated 12.4.2010 and thereafter the OP paid a sum of Rs.75,000/- on 19.4.2010 and thereafter no amount was paid by the OP in order to raise construction of the house and ultimately the account of the complainant was declared as NPA.  The complainant deposited a sum of Rs.3,00,000/- on 7.3.2013 and Rs.5000/- on 16.3.2013 and  Rs.41,000/- on 30.3.2013 and thereafter the complainant came to know that the OP has received a sum of Rs.1,47,062/- and Rs.1,02,595/- in  an illegal manner while calculating interest @ Rs.18.50 per annum and no dues certificate has not been issued. The complainant has prayed for  directing the OP to refund the excess amount and  to issue No Dues Certificate  alongwith compensation on account of harassment. The complainant in support of her case has placed on record Ex.C2 copy of allotment letter, letter Ex.C3 copy of conveyance deed Ex.C4, account statement Ex.C5, receipts Ex.C6 to Ex.C9, possession notice Ex.C10, copy of statement of loan account Ex.C11 and Ex.C12,   possession certificate Ex.C13, letter regarding mortgage  of plot Ex.C14, certificate regarding water connection Ex.C15, sanction for constructionEx.C16, DPC certificate Ex.C17 and permission for water connection Ex.C18. loan sanction letter Ex.C19.

 

5.                 However, as per the contention of the OP the original documents have already been returned and since the complainant has not complied with the terms and conditions of the loan and as such account of the complainant was declared as NPA. The OP has denied recovery of excess amount as alleged and has asserted that the interest has been recovered as per RBI guidelines.  As per the case of the OP the loan was given for raising house construction but the complainant has failed to submit any sanctioned site plan and as such has not  raised construction over the plot and thus  interest @ 18.25% per annum has been charged instead of Rs.9.25% per annum and as such there was no deficiency in services on the part of the OP.  To substantiate his arguments, the OP has placed on record affidavit Ex.O1, copy of interest rates Ex./O2, terms and conditions of loan Ex.O3.

 

6.                 Therefore, after going through the evidence and circumstances of the case, it emerges that the complainant applied for loan for the purchase of plot as well as for  raising construction thereon. It has come in evidence that the plot was allotted to the complainant vide Ex.C2 and conveyance deed Ex.C4 has been executed  in favour of the complainant on 16.3.2010 and amount of Rs.,2,60,000/- was paid out of the loan  sanctioned by the OP as shown in Ex.C5.The OP has also given  a sum of Rs.75,000/- out of the sanctioned loan but thereafter no loan was given by the OP. It is evident that initially the OP has advanced the loan at the rate of interest of Rs.9.25 per  cent per annum  (floating rate ) but the OP has claimed interest @ 18.25% per annum while treating the said loan  as commercial transaction on the ground that the complainant has failed to submit the site plan and has  mis-utilized the said loan. However, after going through the evidence and circumstances of the case it is evident that the complainant obtained possession of the plot vide Ex.C13 after getting the conveyance deed executed in her favour. It has also come in evidence that the complainant has obtained the sanction to raise ground floor vide Ex.C16 dated 30.5.2013 and DPC certificate Ex.C17 dated 14.10.2013 has been placed on the file. The complainant has obtained water connection vide Ex.C18 dated 26.7.20913. However, the letter Ex.C16 to Ex.C18 are obtained after filing of the present complaint which has been filed on 30.04.2013. Therefore, no doubt the complainant has started  raising construction  of the house but after declaration of the account of the complainant as NPA. After going through evidence and circumstances of the case, it is evident that a sum of Rs.2,60,000/- of loan has been utilized by the complainant towards payment of the dues to HUDA in order to get the conveyance deed executed and as such the amount of Rs.2,60,000/- cannot be said to have been mis-utilized  so as to convert the same into a commercial transaction and in order to claim interest @ 18.75 % per annum as has been  done by the OP.

7.                No doubt the complainant has  failed to prove that a sum of Rs.75,000/- has been utilized  by her towards raising construction of the  said house in terms of the loan agreement and after declaration of the account NPA  and after filing of the present complaint she has started raising construction over the  plot as is   evident from Ex.C16 to Ex.C18 as discussed above. Therefore, we are  inclined to  hold that a sum of Rs.75000/- can be said to have been  mis-utilized by the complainant and the OP was entitled to charge interest @ 18.25% per annum as per the RBI guidelines but since the amount of Rs.2,60,000/- has been properly utilized and as such the  charging of rate of interest @ Rs.18.25 was illegal and not sustainable in the eyes of law rather the OP was entitled to charge interest  at the  sanctioned rate of interest  i.e. Rs.9.25% per annum on the amount of Rs.2,60,000/-

 

8.                 Therefore, we direct the OP to settle the account of the complainant while charging interest @ 9.25 % per annum  on the amount of Rs.2,60,000/-  from the date of  disbursement till payment and at the same time we direct the OP to  charge interest on the amount of Rs.75,000/- at the rate of 18.25 % per annum from the date of disbursement till payment . The complainant shall also be entitled to a sum of Rs.2200/- towards legal fee and litigation expenses.  The present complaint is accepted accordingly. The  OP shall make the compliance of this order within a period of thirty days from the date of receipt of the copy of this order. The parties concerned be communicated of the order accordingly and the file be consigned to the record room after due compliance.

Announced
dated: 6.04.2015                                                                            

                                                              (Subhash Goyal)

                                                             President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

                   (Smt.Shashi Sharma)

                             Member.

 

 

Present:-      Sh.S.K.Bhargava  Advocate for the complainant.

                   Sh.Souresh Khanna  Advocate for the OP.

 

                   Arguments heard. Vide our separate order of the even date, the present complaint has been accepted. The parties concerned be communicated of lthe order accordingly and the file be consigned to the record room after due compliance.

 

Announced
dated: 6.04.2015                                                                            

                                                              (Subhash Goyal)

                                                             President,

                                                         District Consumer Disputes

                                                          Redressal Forum, Karnal.

                   (Smt.Shashi Sharma)

                             Member.