Delhi

North

CC/148/2019

NALIN JAIN - Complainant(s)

Versus

HDB FINANCIAL SERVICES LIMITED & ANOTHER - Opp.Party(s)

ARVIND KUMAR

03 Jul 2023

ORDER

District Consumer Disputes Redressal Commission-I (North District)

[Govt. of NCT of Delhi]

Ground Floor, Court Annexe -2 Building, Tis Hazari Court Complex, Delhi- 110054

Consumer Complaint No. CC/148/2019

In the matter of

Shri. Nalin Jain

S/o late Sh.V.P.Jain

R/o -3739, Maman Street, Pahari Dhiraj,

Sadar Bazar, Delhi-110006

                                                                                                                    ....Complainant

vs

1. HDB  Financial Services Ltd.

(Through its Branch Manager)

Office at : 6164/13,  2^nd floor

Above HDFC Bank, Bara Hindu Rao

Azad Market, Delhi-110006                                                         ....Opposite party 1

 

2. HBD Financial Services Limited

(through its managing Director)

Ground floor, Zenith House,

Keshavrao Khoye Marg, Mahalaxi

Mumbai-400034.                                                                                ....Opposite party-2

ORDER
03/07/2023

Harpreet Kaur Charya, Member

1. Jurisdiction of this Commission has been invoked by Sh.Nalin Jain, the complainant against HDB Financial Services Ltd., Branch office as OP-1 and HDB Financial Services Ltd., Regd. Office as OP-2.  
2. Briefly stated the facts as mentioned in the complaint are that, the complainant is engaged in business of trading cloth and had availed of loan for his business. It has been stated by the complainant that one person, namely Sh. Ajay Kumar, the agent of OP approached and informed that he could arrange a loan against property for Rs.10,00,000/- from any nationalised bank at a reasonable interest rates of 10% to 12% . It has been alleged by the complainant that he was made to sign number of blank printed/typed/forms/stamp papers by the person named above in the month of February and March 2017.  
3. On 31/03/2017, Sh. Ajay Kumar informed the complainant that he had managed to get a loan of Rs.10,00,000/- @12% p.a. from HDFC Bank against property.  The original documents of residential property were handed over along with five blank cheques and other forms, for which no acknowledgement was issued till Feb., 2018.  It has also been alleged by the complainant that, only after several requests, a welcome letter dated 08/03/2018 was issued whereas the loan was sanctioned on 24/04/2017.  
4. The complainant has alleged that Sh. Ajay Kumar has played fraud upon complainant in connivance with OPs. A loan of Rs.4,00,000/- instead of                  Rs. 10,00,000/- was sanctioned at a higher rate of interest @ 19% p.a. “personal loan” instead of “loan against property” and further an amount of Rs.3,85,275/- was disbursed instead of sanctioned amount of Rs.4,00,000/-. 
5. The welcome letter was deliberately issued after a period of one year. Despite number of personal visits to OP-1 for correction of rate of interest nothing was done.  On May 2019, a penalty of Rs.2,021/- was imposed on account of default of instalment.  It has been stated in the complaint that despite the ECS mandate, OP instead of debiting the instalment has imposed a penalty even when there was sufficient balance in the account of the complainant.  A written representation dated 01/06/2019 was sent to OP but of no avail.
6. On 04/06/2019, the OP instead of using ECS mandate, misused the cheque of the complainant to withdraw Rs. 11,261/- instead of the instalment of Rs.10,376/- which was done with the intention of the cheating the complainant and a person namely,  Sh. Sumit Choudhary was sent on 24/07/2019 to collect the instalment for the month of July 2019, despite the fact that there were sufficient fund in the account of the complainant on 04/07/2019. OP with malafide intention to harass the complainant, charged huge penalty and damage the CIBIL score did not withdraw the instalment for the month of August 2019 but was pressing on demand of Rs.13,690/- instead of Rs.10,376/-.  
7. The complainant has stated that the act of OP of charging much higher rate of interest and penalty in order to cheat the complainant amounts to deficiency in services has ultimately resulted in mental agony and harassment, therefore,  the present complaint with the prayer(sic) of :-

1. Already paid interest in instalment till July, 2019                      Rs. 2,70,661/-
2. Process fee charged by opposite parties                  1                 Rs.14,725/-
3. Charges spent on transportation means                                     Rs.10,000/-
4. Damages for mental torture/agony/frustration and

disappointment etc. due to defected goods and deficiency

of service by the opposite partiesRs.80,000/-

5. Charges for proceeding of present complaint                            Rs.22,000/-
6. Direct the opposite parties No.1 &2 not to demand further instalments.
7. Not to charge higher and illegal rate of interest of said loan amount from the complainant and reduce the rate of interest and return back the already charged penalties and penal interest to the complainant.
8. Return back the property-title–documents, blank signed cheques and other blank signed documents to the complainant immediately.

The complainant has annexed the copy of welcome letter dt.08/03/2018 along with repayment schedule ; copy of acknowledgment dated 31/03/2017; list of documents report dated 31/10/2017 ; statement of loan account dated 31/10/2017; copy of visiting cards of official /executive of OP;  copy of bank passbook of the complainant; copy of receipt dated 24/07/2017 for payment of instalment; a copy of letter dated 01/06/2019 written by complainant along with postal receipt with the complaint.

8. Notice of the present complaint was served to OP; however, no written statement was filed on their behalf despite opportunity.
9. Evidence by way of affidavit was filed on behalf of the complainant, where the contents of the complaint have been repeated on oath.  The complainant has relied on welcome letter with repayment schedule dated 08/03/2018 and statement of loan account dated 31/10/2017 and have got them exhibited as Ex.CW-1/1 to Ex.CW-1/4(colly).  Copy of the bank passbook as Ex.CW-1/5. The complainant has also got exhibited the copy of the visiting cards of the officers of the OP as Ex.CW-1/6 (Colly) along with postal receipts as Ex.CW-1/7.  The copy of repayment receipts as Ex.CW-1/8.
10. We have heard the submission made by the Ld. Counsel for the complainant and have perused the material placed on record. The complainant has alleged malpractice on the part of OP. He has alleged that the loan sanctioned by OP was ‘personal loan” instead of “loan against property” and that too at a higher rate of interest. If we look at para no. 2 of the complaint which is being reproduced hereunder:

 2. That the customer was doing his business of trading of cloth, but due to his accident his business had been damaged, and since 2017 again, the customer has manage to grow up his said business again.

 

11. Further, the complainant in Para 14 of the complaint has also stated “the complainant could not make grow–up his business again and as that the complainant has got huge loss again in his business for the lack of sufficient funds” (sic). Thus, nowhere in the complaint has it been stated by the complainant that the business was being carried out for the purpose of earning his livelihood, by means of self employment..

In the case in hand, the relationship between the Complainant and the OP is purely “business to business” and the same is commercial in nature and outside the purview of the Consumer Protection Act, 1986. In view of the above, we are of the considered opinion that the loan facility availed by the Complainant is for commercial purpose and this Commission is not an appropriate forum to adjudicate this complaint. Hence, this complaint is dismissed without orders to cost.

Office is directed to supply the copy of this order to the parties as per rules.Order also be uploaded on the website.Thereafter, file be consigned to the record room.

(Harpreet Kaur Charya)                  Member

(Divya Jyoti Jaipuriar) President