Present:       Sri D.Chiranjeevi Babu

                                                President.

                                               Sri N.J.Mohan Rao,

                                               Member.

                                      AND

                                                Smt. V.J. Praveena,

                                                Member.

          Friday the 30^th May, 2008.

CONSUMER COMPLAINANT NO. 72/2007

Between:

1. Kankanala Yella Reddy,

    S/o.Matta Reddy,

    Age: 50 yrs., Occ.:Govt.Servant,

    R/o.H.No.1-442, Sadananda Colony,

    Bheemaram, Hanamkonda,

    Warangal District.

2. Kankanala Bharath Laxmi,

    W/o.Yella Reddy,

    Age; 45 yrs., Occu.: Housewife,

    R/o.H.No.1-442, Sadananda Colony,

    Bheemaram,

    Hanamkonda.

… Complainants

AND

The ICICI Bank Ltd., Warangal

represented by its Branch Manager,

Warangal Branch,

Branch at Green Square Plaza,

Opp.:Public Gardens,

Petrolpump,

Hanamkonda – 506 001.

… Opposite Party

Counsel for the Complainant               :                In person

Counsel for the Opposite Party                      : Sri. C.Vidyasagar Reddy, Advocate

This complaint coming for final hearing before this Forum, the Forum pronounced the following Order.

                                               ::  ORDER  ::

     Sri D.Chiranjeevi Babu President

The brief averments contained in the complaint filed by the complainant are as follows:

01.     The complainant No.1 argued in person before this Forum, the complainant No.1 argued that, he availed home loan of Rs.1,37,000/- from the opposite party under agreement No.LBWNL00000708428, dated 24-02-2004  interest @ 7.5% per annum payable in monthly installments, but the complainants paid loan installments without any default.  On 05-07-2006 the opposite party issued legal notice stating that due to default an amount of Rs.20,624/- is outstanding including over due amount and other charges, for which the complainant No.1 got issued legal notice denying the allegations and the complainant No.1 not due to any amount as alleged by the opposite party.  The opposite party arrived at higher rate of interest @ 7.75/- instead of 7.5% the acts of opposite party amounts to deficiency of service. 

Opposite Party filed the Written Version contending in brief as follows:

02.     The counsel for the opposite party argued that, there is no any deficiency of service on the part of the opposite party because the opposite party he himself loan of Rs.1,37,000/- and the complainant No.1 agreed for interest, so there is no deficiency of service.  The opposite party and the relationship between the complainants and this opposite party is only based on a contract of creditor and borrower.  Moreover there is no deficiency was attributed any where in the complaint against this opposite party.  The opposite party prayed that the Hon’ble Forum may be pleased to dismiss the complaint with exemplary costs in the interest of justice.

03.     The complainant in support of his claim filed his Affidavit in the form of chief examination and marked Exs.A-01 to A-07.  On behalf of opposite party Sri C.Vidyasagar Reddy filed his Affidavit in the form of chief examination.

04.     Now the point for consideration whether the complainants are entitled to get relief as prayed i.e. declared that the demand of the opposite party to pay the alleged over due amount by the complainants under the above agreement, as null and void and not lawful and direct the opposite party not to charge higher rate of interest than the agreed rate of interest i.e. 7.75% till the completion of the loan amount and it is against the guide lines of Reserve Bank of India and to award any other relief or relieves to the complainants.

05.     After arguments of the both side counsels we come to the conclusion that, there is no deficiency of service because the complainant No.1 he himself borrowed the loan from opposite party of Rs.1,37,000/- under agreement dated 24-02-2004.  The contention of the complainant No.1 is that, the opposite party arrived at higher rate of interest @ 7.75% instead of 7.5%.  The loan agreement was very clear with regard to complainant No.1 as the interest rate is vary as and when there is change PLR (Or) ROI and it will not be faced 7.5% and having knowledge about changed rate of interest as per the guidelines of the Reserve Bank of India, so as per the Reserve Bank of India guidelines only the ICICI Bank is collecting the rate of interest, for this our answer is that, as per the norms and guidelines of Reserve Bank of India only the opposite party has to get the interest from the parties.  In this case also as per the norms and guidelines of Reserve Bank of India they are collecting interest from the complainant No.1.  Even though the opposite party has not filed any document to prove that on what basis of collected interest, it is clear cut that, on the basis of norms and guidelines of Reserve Bank of India they are collecting interest.  No doubt the contention of the complainant No.1 is that, the bank is collecting interest higher rate of interest @ 7.75% instead of 7.5% but he also not filed any documents before this Forum with regard to collecting of interest of high rate i.e. 7.75%. When there is no documentary proof from the both side parties, we are of the opinion that as per the norms and guidelines of Reserve Bank of India only the opposite party was collecting interest.  And whatever the opposite party has done it is in a correct line, we did not find out any irregularity from opposite party side. Hence we see no grounds to allow this complaint, as there is no deficiency of service.  Hence this point is decided in favour of the opposite party against the complainants. 

POINT No.2   WHAT RELIEF:-

          The point No.1 is decided in favour of the opposite party against the complainants, this point is also decided in favour of the opposite party against the complainants.

          In the result this complaint is dismissed, but without costs.

(Dictated to the Stenographer transcribed by him corrected and pronounced by us in the open Forum today i.e.  30^th May, 2008).

                                                                               Sd/-                Sd/-               Sd/-

       Member          Member          President,

       District Consumer Forum, Warangal.

APPENDIX OF EVIDNECE

WITNESSES EXAMINED

ON BEHALF OF COMPLAINANTS                        ON BEHALF OF O.P.

Affidavit of Complainants                                   Affidavit of Opposite Party

EXHIBITS MARKED

ON BEHALFOF COMPLAINANTS

1. Ex.A-1 is the ICICI Bank letter to Kankanala Yella Reddy.
2. Ex.A-2 is the Statement of Account from 01-01-1997 to 17-12-2005.
3. Ex.A-3 is the Statement of Account.
4. Ex.A-4 is the Registered Post Receipts.
5. Ex.A-5 is the Legal Notice, dated 04-04-2007.
6. Ex.A-6 is the Legal Notice, dated 05-07-2006.
7. Ex.A-7 is the ICICI Bank statement to K.Yella Reddy.

ON BEHALF OF Opposite partY

                                                                                                     Sd/-

                                                                                              PRESIDENT.