Date of Filing : 15/05/2015

Order No.  16  dt.  04/12/2017

       The case of the complainant in brief is that the complainant obtained a loan of Rs.1,10,000/- from the o.p.1. the said loan was sanctioned vide letter dated 11.04.2011. As per the condition of the loan amount was supposed to repay by 48 installments and each of the EMI shall be of Rs.3,703/-. The complainant paid 12 EMIs of Rs.3,703/- i.e. Rs.44,436/-. After payment of the said EMI the complainant decided to foreclose the loan amount and accordingly approached the o.p. for closure of the loan. The representative of the o.p. demanded more than Rs.1,00,000/- for such foreclosure of loan. The complainant objected to such proposal since he had already paid Rs.1,36,725/- towards the loan amount of Rs.1,10,000/-. The o.p. thereafter sent a letter to the complainant stating that they waived Rs.66,066.26 and the o.p. thereafter acknowledged receipt of Rs.22,299/- and they also waived overdue charges amounting to Rs.43,767.26 and accordingly the complainant was informed that the loan account was closed. The complainant requested the o.p. to issue no due certificate but the same was not complied for which the complainant praying for direction upon the o.p. for taking necessary steps for removal of the name of the complainant from CIBIL and also prayed for compensation from the o.p. to the tune of Rs.10,00,000/-.           

            O.p. contested the case by filing w/v and denied all the material allegations of the complaint. It was stated that the complainant had availed a loan facility from the o.ps on applicable terms and conditions expressly agreed to by him. The law is well settled that where the relationship between the parties is of debtor or creditor, the C.P.Act cannot have any application in the same. The complainant filed the instant case praying for modification of his credit history in the CIBIL list by showing closed and not as settled and compensation. The complainant in spite of having knowledge of the modification of its status in the CIBIL list the complainant filed this case with the intension to harass the o.p. The complainant in the month of October/November 2012 approached the o.ps and proposed for settlement of the outstanding amount of Rs.1,36,066.26 on payment of sum of Rs.70,000/- and further requested waiver of  Rs.66,066.26 and the o.p. accepted the said proposal. As the complainant’s amount was settled, his status in the CIBIL was updated as “ post write-off settled” and accordingly the account was closed on 12.12.2012. The complainant again approached the o.ps for modification of   CIBIL status from “post write-off settled” to “closed” which was replied by the o.ps. with the information that after waiving a huge amount, his status was updated as settled and the same can be updated only upon payment of entire waiver amount of Rs.66,066.26 however the complainant paid only sum of Rs.22,299/- and failed to pay the balance amount. The o.p. recorded the status of the complainant as closed and the same was intimated to the complainant. The o.p. also issued no due certificate to the complainant and the status of the complainant has already been updated as “closed” in CIBIL. The complainant in order to have the illegal gain made this false case against the o.ps. and accordingly the o.ps. prayed for dismissal  of the case.

            On the basis of the pleadings of the respective parties following points are to be decided :-

• Whether the complainant took loan from the o.p.1?
• Whether the complainant on payment of the balance amount the o.ps closed the account?
• Whether there was any deficiency in service on the part of the o.ps?
• Whether the complainant will be entitled to get any relief as prayed for?

Decision with reasons :-

            All the points are taken up together for the sake of brevity and avoidance of repetition of facts.

            Ld. Lawyer for the complainant argued that the complainant obtained a loan of Rs.1,10,000/- from the o.p.1. the said loan was sanctioned vide letter dated 11.04.2011. As per the condition of the loan amount was supposed to repay by 48 installments and each of the EMI shall be of Rs.3,703/-. The complainant paid 12 EMIs of Rs.3,703/- i.e. Rs.44,436/-. After payment of the said EMI the complainant decided to foreclose the loan amount and accordingly approached the o.p. for closure of the loan. The representative of the o.p. demanded more than Rs.1,00,000/- for such foreclosure of loan. The complainant objected to such proposal since he had already paid Rs.1,36,725/- towards the loan amount of Rs.1,10,000/-. The o.p. thereafter sent a letter to the complainant stating that they waived Rs.66,066.26 and the o.p. thereafter acknowledged receipt of Rs.22,299/- and they also waived overdue charges amounting to Rs.43,767.26 and accordingly the complainant was informed that the loan account was closed. The complainant requested to o.p. to issue no due certificate but the same was not complied for which the complainant praying for direction upon the o.p. for taking necessary steps for removal of the name of the complainant from CIBIL and also prayed for compensation from the o.p. to the tune of Rs.10,00,000/-.

            Ld. Lawyer for the o.p.s argued that the complainant had availed a loan facility from the o.ps on applicable terms and conditions expressly agreed to by him. The law is well settled that where the relationship between the parties is of debtor or creditor, the C.P.Act cannot have any application in the same. The complainant filed the instant case praying for modification of his credit history in the CIBIL list by showing closed and not as settled and compensation. The complainant in spite of having knowledge of the modification of its status in the CIBIL list the complainant filed this case with the intension to harass the o.p. The complainant in the month of October/November 2012 approached the o.ps and proposed for settlement of the outstanding amount of Rs.1,36,066.26 on payment of sum of Rs.70,000/- and further requested waiver of  Rs.66,066.26 and the o.p. accepted the said proposal. As the complainant’s amount was settled, his status in the CIBIL was updated as “ post write-off settled” and accordingly the account was closed on 12.12.2012. The complainant again approached the o.ps for modification of   CIBIL status from “post write-off settled” to “closed” which was replied by the o.ps. with the information that after waiving a huge amount, his status was updated as settled and the same can be updated only upon payment of entire waiver amount of Rs.66,066.26 however the complainant paid only sum of Rs.22,299/- and failed to pay the balance amount. The o.p. recorded the status of the complainant as closed and the same was intimated to the complainant. The o.p. also issued no due certificate to the complainant and the status of the complainant has already been updated as “closed” in CIBIL. The complainant in order to have the illegal gain made this false case against the o.ps. and accordingly the o.ps. prayed for dismissal  of the case.

            Considering the submissions of the respective parties it is an admitted fact that the complainant obtained loan from the o.p.1. It was decided that the complainant would pay in 48 months of EMI of Rs.3,703/-. After payment of the 12 EMIs the complainant wanted to close the loan account but the complainant claimed that in order to foreclose the loan the o.p.s demanded more than Rs.1,00,000/-, in support of the said contention the complainant could not file any document to that effect. It is found from the materials on record that on the request of the complainant the o.p. waived Rs.66,066.26 and also waived the overdue charges. On the basis of the said fact the o.p. closed the loan account. In spite of clearing the loan amount the name of the complainant has appeared in the CIBIL. The complainant wanted to remove his name from the CIBIL and requested the o.p.1 to issue no due certificate and the same is to be communicated to the concerned authority for removal of the name of the complainant of CIBIL. It appears from the record that the complainant paid the amount more than the principal amount received by him from the o.p.1 and it is also found that the complainant paid the loan amount and as per the settlement the loan account was closed. It is curious enough that the o.p. neither issued no dues certificate to the complainant nor had taken any steps for removal of trhe complainant from CIBIL. From the facts and circumstances it is well established that the o.p. did not take any action on the basis of the request made by the complainant to the o.p.1. In view of the facts and circumstances stated above we hold that there was gross deficiency in service on the part of the o.p. and the complainant will be entitled to get the relief as prayed for.

            Thus all the points are disposed of accordingly.

            Hence, it is ordered,

            that the case no.253/2015 is allowed on contest against the o.ps with cost. The o.p.1 is directed to issue no due certificate to the complainant and to take steps for removal of the name of the complainant from CIBIL and both the o.ps are jointly and/or severally directed to pay compensation of Rs.10,000/- and litigation cost of Rs.5,000/- within 30 days from the date of communication of this order, i.d. an interest @ 8% p.a. shall accrue over the entire sum due to the credit of the complainant till full realization.      

            Supply certified copy of this order to the parties free of cost.