Haryana

Yamunanagar

CC/736/2011

Som Nath S/o Ram Lal - Complainant(s)

Versus

Fullerton India Credit Company Ltd. - Opp.Party(s)

Zile Singh

17 Mar 2016

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, YAMUNA   NAGAR

                                                                                          Complaint No. 736 of  2011.

                                                                                          Date of institution: 13.07.2011

                                                                                          Date of decision: 17.03.2016

Som Nath son of Shri Ram lal resident of village Baindi, Sub Tehsil Radaur, Tehsil Jagadhri, District Yamuna Nagar.                                                                                                                                                                                                  …Complainant.

                                    Versus

1. Fullerton India Credit Company ltd. Branch Office: FCO No.63, First Floor, Shivaji Market, Piara Chowk, Jagadhri Road, Yamuna Nagar, through its Manager.  
2. Fullerton India Credit Company Ltd. Building No.11, First Floor, Sokitaire Corp. Park, Andheri Ghatkopar Link Road, Chakala, Andheri (E ) Mumbai-400093 through its M.D.    

                                                                                                …Respondents.

 

BEFORE:         SH. ASHOK KUMAR GARG, PRESIDENT

                        SH. S.C.SHARMA, MEMBER.

 

Present: Sh. Zile Singh, Advocate, counsel for complainant.   

              Sh. K.K.Gupta, Advocate, counsel for respondents.

 

 

ORDER

 

1.                     Complainant Som Nath has filed the present complaint under section 12 of the Consumer Protection Act 1986 praying therein that respondents (hereinafter referred as OPs) be directed to issue No Dues Certificate/ Clearance Certificate to the complainant regarding his loan account and further not to misuse the blank cheques given by the complainant at the time of taking loan and further to pay compensation as well as litigation expenses.

2.                     Brief facts of the present complaint, as alleged by the complainant, are that the complainant applied for a personal loan with the OPs and a sum of Rs. 31,491/- was disbursed to the complainant on 18.07.2009 against loan account No. 053625000013810 which was to be repaid in 18 equal monthly installments of Rs. 2318/- each. The schedule of installments (Annexure C-1) was prepared by the Ops and was handed over to the complainant. The OPs had obtained 18 blank cheques from the complainant towards installments of loan. The complainant had paid 9 installments towards loan amount by cash against receipt dated 25.8.2009, 28.10.2009, 13.12.2009, 17.02.2010, 28.04.2010, 29.01.2011, 15.02.2011, 16.03.2011 and 20.04.2011 (Annexure C-5 to C-13) issued by the OPs and the remaining 9 installments have been paid through cheques as the OPs have got encahsed 9 cheques out of 18 blank cheques of the complainant as is evident from the Pass Book of account of complainant ( Annexure C-3 & C-4). The remaining 9 blank cheques are still lying with the OPs. In this way, the complainant has repaid the entire loan amount of the OPs with interest and nothing is due against the complainant. The complainant approached the OPs and requested them to issue No Dues Certificate/Clearance Certificate in respect of abovesaid loan account but the OPs refused to issue the No Dues Certificate and told that some amount is outstanding against the loan account of complainant even after receipt of entire 18 installments from the complainant. The complainant objected to such outstanding balance against him, as he has already deposited entire installments of loan. The OPs threatened that they shall recover and realize the illegal and arbitrary amount from the complainant by adopting coercive methods whereas no amount is due against the complainant. The act on the part of Ops amounts to deficiency in service. Hence this complaint. 

3.                     Upon notice, OPs appeared and filed its written statement by taking some preliminary objections such as present complaint is not maintainable, no locus standi to file the present complaint, estopped from filing the present complaint, no relationship of consumer and supplier and on merit it has been mentioned that on the request of complainant a personal loan of Rs. 34,900/- was sanctioned and disbursed on 20.06.2009, which was to be repaid in 24 monthly installments @ Rs. 2318/-. It has been further submitted that an agreement was also executed between the parties regarding the said loan but the complainant has been defaulter for making the payment of the regular installments and violated the terms and conditions of the agreement. It has been further submitted that amount of premium of insurance, process fee etc. were adjusted from the sanctioned amount as agreed and a sum of Rs. 31,491/- was paid to the complainant as per terms and conditions. It has been denied that any schedule of installments was given to the complainant as alleged. It has been further submitted that it was agreed by the parties that the aforesaid loan was to be repaid in 24 equal monthly installments of Rs. 2318/- each vide agreement dated 18.06.2009 (Annexure R-1), so, there was no requirement for any schedule of installments. It has been further denied that OPs had obtained any blank cheques from the complainant as alleged. The complainant had issued six post dated cheques for the monthly installments and three post dated cheques were given for discharge of his liability of loan amount, if in case, the complainant violate the terms and conditions of the agreement. It has been further submitted that the complainant has been defaulter for making the payment of regular installments, as such, he has violated the terms and conditions of the agreement and now he has filed the present complaint on false and frivolous grounds with the malafide intention to avoid his liability of Rs. 22,659.28 which is outstanding in his loan account as on 25.10.2011. It has been further submitted that the complainant has paid only 17 monthly installments out of total 24 installments and out of 17 installments he has paid (6) six installments through abovesaid post dated cheques and two (2) installments were also paid through cheques, which were given at the time of due installments and remaining nine (9) installments were paid in cash against receipt. Thereafter, the complainant has been defaulter for making the payment of seven installments and now with the malafide intention to avoid his liability, he has filed the present complaint. As such, there is no deficiency in service on the part of Ops and prayed for dismissal of complaint.  

4.                     To prove the case, counsel for the complainant tendered into evidence affidavit of complainant as Annexure CW/A and documents such as Amortization schedule/repayment schedule as Annexure C-1, Letter dated 8.7.2009 regarding repayment schedule as Annexure C-2, Photo copy of statement of account as Annexure C-3 & C-4, Repayment receipts as Annexure C-5 to C-13 and closed the evidence on behalf of complainant.

5.                     On the other hand, counsel for the OPs tendered into evidence affidavit of Vinod Kumar, Collection Officer as Annexure RW1/A and documents such as Photo copy of personal loan agreement as Annexure R-1 and Photo copy of statement of account as Annexure R-2 and closed the evidence on behalf of Ops.

6.                     The only plea of the complainant is that he was sanctioned a loan of Rs. 34,900/- by the Ops which was to be repaid in 18 equal monthly installments of Rs. 2318/-, which is evident from Annexure C-1 and the same has been repaid. The complainant further stated that out of 18 equal monthly installments he paid 9 installments in cash vide receipt dated 20.4.2011, 16.3.2011, 15.2.2011, 29.1.2011, 28.4.2010, 17.02.2010, 13.12.2009, 28.10.2009 and 25.8.2009 (Annexure C-5 to C-13) and remaining 9 installments were recovered by the OPs through cheques on 8.1.2010, 15.5.2010, 9.6.2010, 14.7.2010, 13.8.2010, 16.9.2010, 13.10.2010, 12.11.2010 and 16.12.2010 from his account  bearing No. 51872040000280 which is evident from Annexure C-3 & C-4. As such, the complainant has paid the entire loan amount and he is entitled to get No Dues Certificate as well as compensation.

7.                     On the other hand, counsel for the OPs hotly argued that the complainant was sanctioned a personal loan of amounting to Rs. 34,900/- and after deducting premium of insurance and process fee they have paid an amount of Rs. 31,491/- and the same was disbursed to him on 20.6.2009. The sanctioned loan of amounting to Rs. 34,900/- was to be  repaid by the complainant in 24 equal monthly installments of Rs. 2318/- and he paid only 17 installments out of 24 installments and now an amount of Rs. 22,659.28 is yet to be paid by the complainant as per calculation made on 25.10.2011. Hence, the complainant is not entitled to get no dues certificate until he deposits the rest amount of loan outstanding in his loan account.

8.                     After hearing the both parties, we are of the considered view that the plea taken by the ops is not tenable  as official of the ops has issued letter of Amortization Schedule of repayment of loan amount alongwith forwarding letter which is Annexure C-1 & C-2 to the complainant, wherein the entire loan amount is shown to be repaid in 18 equal monthly installments of Rs.2318/- and not in 24 monthly installments as alleged by the ops in their written statement and agreement (Annexure R-1) and account statement (Annexure R-2) filed by the ops. From the perusal of letter of Amortization schedule Annexure C-1, it is clear that amount of monthly installment Rs.2318/- includes the amount of principal and interest. As per this schedule total loan amount of Rs.34900/- as principal and Rs.6816/- as interest i.e. Rs.41716/- was divided into 18 equal installments of Rs.2318/- (Rs.41716 % Rs.2318 = 18 installments) which was to be recovered from the complainant.

9.         Further from the perusal of statement of account Annexure R-2 and copy of passbook Annexure C-3 & C-4 as well as receipt of depositing installments Annexure C-5 to C-13, it is clear that the complainant has paid all the eighteen (18) installments of Rs.2318/- each to the ops as per scheduled letter of Amortization Annexure C-1. It is not the case of the ops that Annexure C-1 Amortization letter which is printed on the letter pad of ops Firm, has been falsely prepared by the complainant or has not been issued to the complainant. Further as per statement of account Annexure R-2, complainant had paid 9 installments in cash and further remaining 9 installments were cleared through post dated cheques handed over to the ops by the complainant at the time of disbursement of the loan amount. Even the case of the complainant is also proved from the version of the ops, as they have admitted that only 9 cheques were handed over not the 24 blank cheques. Generally people executes by putting their signatures on the blank papers / printed documents of the banks or private financial institutes without going through carefully and minutely as they desperately need money. So the arguments advance by the counsel for ops that complainant had executed loan documents (Annx.R-1) of 24 installments is also not tenable as the loan documents Annexure R-1 is self contradictory to the Annexure C-1 letter of Amortization schedule issued by the Ops.

10.                   In the circumstances noted above, we are of the considered view that the ops have wrongly withheld the No Dues Certificate/remaining blank cheques of the complainant which constitute unfair trade practice on the part of Ops. Hence the complainant is entitled for relief.

11.       Resultantly, we partly allow the complaint of the complainant and direct the ops to issue NOC (No Dues Certificate) and not to misuse the blank cheques, if any, in their possession or return the same to the complainant. Further, the ops are also directed to pay Rs.5000 as compensation and Rs 2000/-as litigation expenses. Order be complied within a period of 30 days after preparation of copy of this order failing which the complainant shall be entitled to invoke the jurisdiction of this forum as per law. Copies of this order be sent to the concerned parties free of cost as per rules. File be consigned to the record after due compliance.  

Announced in open court                          

Dt.17.03.2016

                                                                        (ASHOK KUMAR GARG)

                                                                         PRESIDENT

 

 

 

                                                                        (S.C.SHARMA)

                                                                        MEMBER