Haryana

Yamunanagar

CC/456/2011

Tara Chand S/o Joginder Singh - Complainant(s)

Versus

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

Satish Sangwan

20 Dec 2016

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, YAMUNA   NAGAR

                                                                                              Complaint No. 456  of  2011.

                                                                                              Date of institution: 09.05.2011

                                                                                              Date of decision:20.12.2016.

Tara Chand aged about 55 years son of Shri Joginder Singh, resident of House No. 47, Bank Colony, Kansepur, Yamuna Nagar, Tehsil Jagadhri, District Yamuna Nagar.

                                                                                                                                                                                                                                                                                                                                                                            …Complainant.

                                    Versus

1. Fullerton India Credit Company Limited, through its Manager/ Director, Building No.11, First Floor, Solitaire Corp. Bank, Andheri Ghatkopur, Link Road, Mumbai-400093.
2. Fullerton India Credit Company Ltd. through its Branch Head, Branch Opposite Shivaji Market, Jagadhri Road, Yamuna Nagar.

                                                                                                                          … Respondents. 

 

                         

CORAM:          SH. ASHOK KUMAR GARG, PRESIDENT

                          SH. S.C.SHARMA, MEMBER.

 

Present: Sh. Satish Sangwan, Advocate, counsel for complainant.   

              Sh. Nalin Gupta, Advocate, counsel for respondents. 

 

ORDER

 

1.                     Complainant Tara Chand has filed the present complaint under section 12 of the Consumer Protection Act 1986 seeking directions to the respondents (hereinafter referred as OPs) to issue NOC and refund the excess amount alongwith interest as well as compensation and litigation expenses. 

2.                     Brief facts of the complaint, as alleged by the complainant, are that complainant obtained a personal loan of Rs. 25,000/- from the OP No.2  and at the time of taking loan the OPs took the signatures of the complainant on blank printed forms and taken 20 signed blank cheques from the complainant. The OPs disbursed only Rs. 21,435/- despite applying loan of Rs. 25,000/-  and repayment of the said loan was started from May, 2009. At the time of taking loan, the Ops had assured the complainant that they would charge the interest on the loan amount as per RBI Guidelines and as per bank norms and believing their assurances, the complainant had agreed to take loan from the OPs. The complainant has paid as many as 24 installments amounting to Rs. 1345/- each and last installment given by the complainant was on 31.03.2011, the receipts of deposit of installments are enclosed herewith. Since, the complainant has already paid 24 installments of Rs. 1345/- each i.e. total amount of Rs. 32,280/- therefore, he thought that he has already paid whole of the loan amount alongwith interest upto date and in good faith the complainant asked the OPs to give the NOC but the complainant was shocked to know when the Ops disclosed this fact that an amount of Rs. 14,000/- is outstanding against him and if he wants NOC from them in that eventuality he has to deposit the remaining Rs. 14,000/-. The act of the OPs is altogether arbitrary because they had assured that they would charge the interest as per RBI Guidelines and as per bank norms but they have illegally charged interest as per their wishes. In this way, the act and conduct of the OPs is totally illegal which constitute deficiency in service on their part. The complainant requested so many times to the OPs to rectify the same but all in vain. Hence this complaint.

3.                     In support of his case, the counsel for the complainant tendered into evidence affidavit of complainant as Annexure CX and documents such as photo copies of receipts as Annexure C-1 to C-5 and closed the evidence on behalf of complainant.

4.                     Upon notice, OPs appeared and filed its written statement jointly by taking some preliminary objections such as complaint is not maintainable as the OPs Company is a financial institution registered with the Registrar of Companies and doing the business of finance to the General Public. The OP Company is duly licensed issued by the RBI and borrow the money from the various sources on agreed rate of interest and lend it to its needy customer on agreed rate of interest with minimum margin; the present complaint is false and frivolous; the present complaint is bad for non-joinder of necessary parties and on merit it has been admitted to the extent that the complainant had taken loan of Rs. 25,000/-, which was repayable in 36 equal installments of Rs. 1345/-, on 25.03.2009 and denied the fact that the OPs Company had taken 20 blank cheques from the complainant. It has been further admitted to the extent that the complainant and OPs Company executed a loan agreement and agreed the rate of interest as per that agreement. It has been further admitted to the extent that the complainant has paid 24 installments of Rs. 1345/- whereas as per agreement the abovesaid loan was repayable in 36 installments of Rs. 1345/-. Hence, 12 installments of Rs. 1345/- are still due towards the complainant which he is liable to pay the same and lastly prayed for dismissal of complaint.

5.                     Counsel for the OPs failed to adduce any evidence despite so many opportunities with last and costs and the evidence of the Ops was closed by court order dated 21.10.2016.

6.                     During the course of arguments counsel for the OPs tendered some documents i.e. copy of loan application and copy of loan agreement. We have heard the learned counsel for both the parties and have gone through the pleadings as well as documents placed on file very minutely and carefully.

7.                     It is not disputed that complainant had taken a loan of Rs. 25000/- from the Op No.2 Finance Company out of which only an amount of Rs. 21435/- was disbursed on 21.03.2009 to the complainant. It is also not disputed that the complainant repaid the entire principal amount of Rs. 21435/- alongwith interest through 24 installments amounting to Rs. 1345/-each by paying the last installment on 30.04.2011. It is also not disputed that complainant refunded/repaid the total amount of Rs. 32,280/- within a period of about 25 months i.e. from 21.03.2009 to 30.04.2011 as he obtained the actual amount of loan i.e. Rs. 21435/- on 21.03.2009 and paid last installment of Rs. 1345/- on 30.04.2011 which is duly evident from the copy of receipt Annexure C-1. Meaning thereby that complainant refunded/ repaid the amount of Rs. 21435/- as principal amount and Rs. 10845/- as interest for 25 months. Although the Ops Finance Company has taken defence in its written statement that complainant was bound to pay 36 installments and out of which he has only paid 24 installments and still 12 installments are due against him, so, the OP Finance Company cannot issue the NOC but this plea of the Op Company is not tenable as the OPs Finance Company has totally failed to prove that the entire loan will be repaid in 36 installments not in 24 installments. When the entire loan had already been repaid in 24 installments then how the OPs Finance Company can compel the complainant to pay 36 installments. Even, the OPs Finance Company failed to adduce any cogent documentary evidence despite so many opportunities with last and costs and its evidence was closed by court order on 21.10.2016. However, learned counsel for the OPs Sh. Nalin Gupta, Advocate produced some photo copies of documents i.e. application form for personal loan and agreement during the course of argument but these documents have not been duly proved by the OPs. Even, after going through these documents, we find that OPs Finance Company has mentioned the rate of interest as 31.23% flat per annum which is totally against the principal of natural justice as the RBI has reduced the rate of interest from time to time and the rate of interest never remained more than 14-15% in the year 2009 to 2011. Hence, we are of the opinion that the OPs Finance Company is wrongly and illegally, against the guidelines of the RBI and natural justice is charging the higher rate of interest from the complainant under compelling circumstances which cannot be permitted to do it, which constitute the unfair trade practice on the part of the OPs Finance Company.

8.                     In the circumstances noted above, as the complainant has repaid the entire principal amount of Rs. 21,435/- and interest thereon Rs. 10845/- i.e. total Rs. 32,280/- to the OPs Finance Company, hence, we have no option except to partly allow the complaint of complainant.

9.                     Resultantly, we partly allow the complaint of complainant and direct the OPs Finance Company not to charge any further amount from the complainant and issue the “NOC” to the complainant within a period of 30 days failing which complainant shall be entitled to invoke the jurisdiction of this Forum as per law. Further the OPs Finance Company is also directed to return the cheque of the complainant or not to misuse the same. Copies of this order be sent to the parties concerned free of costs as per rules. File be consigned to the record room after due compliance.

Announced in open court.20.12.2016.

 

                                                                                          (ASHOK KUMAR GARG)

                                                                                           PRESIDENT

                                                                                          D.C.D.R.F. YAMUNANAGAR

 

 

 

                                                                                          (S.C.SHARMA)

                                                                                           MEMBER