Order by:
Aparana Kundi, Member
1. The complainant has filed the instant complaint under section 35 of the Consumer Protection Act, 2019 stating that on dated 19.06.2019, the complainant Salaried Personal Loan from the Opposite Parties having account no.8001935. The details of which is mentioned as under:-
Loan Amount Rs.4,00,000/-
Installment amount Rs.10,157/- per month
Repayment Start Date 08.08.2019
Total Installment 60 (5 years)
As per loan agreement, Opposite Parties itself deducted the installments automatically from account no.65027778908 of State Bank of India, Branch at Dharamkot, District Moga, which belongs to complainant, but in the month of April-May of 2020, Opposite Parties did not deduct the installment from the account of the complainant and when complainant enquired about the same from Opposite Parties, they told that due to Covid-19 and as per instructions from Supreme Court, they could not deduct the installment from the bank account of the complainant. Thereafter, the Opposite Parties is continuously deducting the amount from the account of the complainant automatically till 08.07.2024. Alleged that after the retirement of the complainant, the Opposite Parties automatically deducted the installment amount from the pension of the complainant. Alleged further that after 08.07.2024, when complainant went to the office of Opposite Party No.1 and asked about the ‘no objection certificate’, but on 19.07.2024, the Opposite Parties gave a new installment list of 65 installments, which were to paid till 18.12.2024. When the complainant asked from the Opposite Parties about the 65 installments, then they replied that due to non-payment of two installments in the month of April-May of 2020, interest was added in the said installments i.e. Rs.20.314/- installment + Rs.24,558/- interest, then the complainant told them he has sufficient amount in his bank account in the month of April-May of 2020, but the Opposite Parties did not give any satisfactory reply. Thereafter, the complainant approached the Opposite Parties several time with a request to issue no objection certificate, but to no effect. Hence, this complaint. Vide instant complaint, the complainant has sought the following reliefs:-
a) Opposite Parties may be directed to issue ‘No Due Certificate’ pertaining to loan agreement no.8001935 to the complainant.
b) To pay a sum of Rs.1,00,000/- as compensation on account of mental tension, harassment and for deficient services.
c) To pay Rs.5000/- as litigation expenses.
d) And any other relief which this Commission may deem fit and proper be granted to the complainant in the interest of justice and equity.
2. Opposite Parties appeared through counsel and contested the complaint by filing written reply taking preliminary objections therein inter alia that the present complaint is wholly misconceived, baseless and unsustainable in law; the complainant is not the consumer of Opposite Parties. The relationship between the complainant and Opposite Parties is that of Borrower and Debtor and not those of consumer and service provider. Hence, the present complaint filed by the complainant is beyond the purview of the Consumer Protection Act, 2019; this Commission has got no jurisdiction to try and entertain the present complaint. As per the loan agreement arrived at by the complainant and the Opposite Parties, in case any dispute/difference/claim arises between the parties to the agreement, the same has to be referred to Arbitrator. It is submitted that as per the terms of the loan agreement, even in case there is any dispute, the same has to be decided by the arbitrator and not by this Commission; the complainant has not approached this Commission with clean hands and guilty of suppression, concealment and misrepresentations of true and material facts from this Commission.
Averred that the complainant has availed a Salaried Person Loan of Rs.4 lakhs from the Opposite Parties vide loan account no.8001935 and the said loan was disbursed on 29.06.2019. Said amount alongwith fixed interest @ 18% p.a. thereon was repayable in 60 monthly installment of Rs.10,157/- starting from 08.08.2019 to 08.07.2024. However owing to the situation arising out of the ongoing lockdown due to Novel Corona Virus-Covid-19, the Opposite Parties as a goodwill gesture, has granted moratorium of 2 months for the months of April 2020, May, 2020 to the complainant as per the guidelines of Reserve Bank of India even without the request of the complainant and deferred the last installments for 2 months. Besides this, Opposite Parties have also not imposed any penal interest for the loan moratorium for a period of two months as per the guidelines of the Reserve Bank of India. Due to the moratorium period, loan account was rescheduled as per the guidelines/circular no.RBI/2019-20/186 DOR No.BP.BC.47/21.04.048/2019-20 dated 27th March, 2020 of RBI and tenure of loan has been extended from 60 to 65 months i.e. 08.08.2019 to 08.12.2024. The complainant paid 61 installment and only 4 installments are pending. NOC will be issued after the closure of loan account. The complainant has concealed this material facts from this Commission and has filed the present complaint just in order to harass the answering Opposite Parties. The answering Opposite Parties has complied with all the terms and conditions of the agreement and no illegality has been done by the answering Opposite Parties. On merits, all other allegations made in the complaint are denied and a prayer for dismissal of the complaint is made.
3. In order to prove the case, complainant has placed on record his affidavit as Ex.C1 alongwith copies of documents Ex.C2 to Ex.C5.
4. On the other hand, Opposite Parties have placed on record affidavit of Sh.Amit Kumar, Legal Officer, HDB Financial Services as Ex.OP1 alongwith copies of documents Ex.OP2 to Ex.OP5.
5. We have heard the ld. counsel for both the parties and also gone through the record.
6. It is admitted and proved on record that the complainant availed Salaried Personal Loan of 4 lakhs, vide loan account no.8001935 from the Opposite Parties and the said loan amount alongwith fixed interest @ 18% per annum was payable in 60 monthly installments of Rs.10,157/- starting from 08.08.2019 to 08.07.2024. It is also proved on record installments for months of April-May 2020 were not deducted from the account of the complainant and thereafter all the loan installments regularly got deducted from the account of the complainant without default. Thereafter, the Opposite Parties granted moratorium of two months i.e. for the months of April-2020 and May-2020 to the complainant as per the guidelines of Reserve Bank of India and deferred last installments for two months and due to that moratorium, loan account of the complainant was rescheduled as per the guidelines/circular no.RBI/2019-20/186 DOR No.BP.BC.47/21.04.048/2019-20 dated 27th March, 2020 of RBI and tenure of loan has been extended from 60 to 65 months i.e. 08.08.2019 to 08.12.2024.
7. Now, we came to the main dispute of the parties. The allegation of the complainant is that despite having sufficient fund in this account, the Opposite Parties did not deduct the loan installments from his account for the month of April-May, 2020 and thereafter, the Opposite Parties rescheduled his loan account and extended the loan tenure from 60 to 65 months and also illegally deducted two extra installments from his account on 08.10.2024 and 08.11.2024 respectively and to prove this fact, the complainant has also placed on record his latest statement of account for the period 1.08.2024 to 29.11.2024.
8. On the other hand, the plea taken by the Opposite Parties is that owing to the situation arising out of the ongoing lockdown due to Novel Corona Virus-Covid-19, the Opposite Parties has granted moratorium of 2 months for the months of April 2020, May, 2020 to the complainant as per the guidelines of Reserve Bank of India and deferred the last installments for 2 months. Due to the moratorium period, loan account was rescheduled as per the guidelines/circular no.RBI/2019-20/186 DOR No.BP.BC.47/21.04.048/2019-20 dated 27th March, 2020 of RBI and tenure of loan has been extended from 60 to 65 months i.e. 08.08.2019 to 08.12.2024. The complainant paid 61 installment and only 4 installments are pending. NOC will be issued after the closure of loan account.
9. However, we do not agree with the plea taken by the Opposite Parties, as it is proved on record, vide account statement duly placed on record by the complainant (Ex.C4) that he was having sufficient amount in his account in the month of April-May, 2020, but it was as per the guidelines/circular no.RBI/2019-20/186 DOR No.BP.BC.47/21.04.048/2019-20 dated 27th March, 2020 of RBI, the Opposite Parties had not deducted the loan amount from the account of the complainant. Hence there is no fault on the part of the complainant while paying the loan installments. So, the granting of 2 months moratorium benefits on the one hand and charging interest on the moratorium on the other hand is wrong and not genuine. This decision of ours is based on the judgement passed by Hon’ble Supreme Court of India, in case titled as ‘Small Scale Industrial Manufactures Versus Union of India’ dated 23.03.2021, wherein it has been held by the Hon’ble Court that “there shall not be any charge of interest on interest/compound interest/penal interest for the period during the moratorium from any of the borrowers and whatever the amount is recovered by way of interest on interest/compound interest/penal interest for the period during the moratorium, the same shall be refunded and to be adjusted/given credit in the next installment of the loan account.
10. In view of the above discussion and judgement (supra), we are of the considered opinion that Opposite Parties have wrongly and illegally charge interest for the moratorium period and debited two extra installments from his account i.e. on 08.10.2024 and 08.11.2024 respectively, whereas the Opposite Parties were only liable to take 2 installments pertaining to moratorium period and those were already deducted by the Opposite Parties on 08.08.2024 and 09.09.2024, after the completion of the loan period on 08.07.2024.
11. Sequel to the above discussion, the instant complaint is allowed in part and Opposite Parties are directed to refund the amount of Rs.20,314/- (i.e. Rs.10,157/- wrongly deducted on 08.10.2024 and Rs.10,157/- wrongly deducted on 08.11.2024) alongwith interest @ 9% per annum from the date of filing of complaint till its actual realization and further directed not to deduct the installment due in the month of December and also issue NOC to the complainant with regard to the loan agreement no.8001935 of the complainant. Opposite Parties are also directed to pay compository costs of Rs.10,000/-(Rupees Ten Thousand only) as compensation and unwanted or forced litigation expenses to the complainant. The pending application(s), if any also stands disposed of. The compliance of this order be made by the Opposite Parties within 30 days from the date of receipt of copy of this order, failing which, the Opposite Parties are further burdened with additional cost of Rs.5,000/-(Rupees Five Thousand only) to be paid to the complainant for non compliance of the order. Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room.
Announced on Open Commission
