ORDER                          Dated:
17-10-2016
Mohd. Anwar Alam, President

1.      The complainants filed this complaint on 18-02-2014 and alleged
that on 12.01.2006 OP sanctioned a housing loan of Rs 26,56,125/- to
them. Complainants further alleged that as per the loan agreement they
have paid all the 96 EMIs from 10.02.2006 to 10.12.2013 but OP failed
to issue N.O.C/closure letter and demanding Rs 7,50,000/-  as due
amount. On 17/09/2013, a legal notice was sent to OP and on receipt of
the same an executive of OP assured complainants that OP will provide
them closure letter/N.O.C. as soon as possible but OP failed to do so.
Hence, there is deficiency in service on the part of OP for which the
complainants prayed to direct OP to deliver closure letter/NOC and to
pay Rs. 90,000/- as compensation for mental pain, harassment and cost
of litigation.
2.      In reply, OP admitted that floating rate of interest was charged as
per  the rate of interest fixed by the RBI and EMIs were increased due
to the increase in interest rate and on the request of the
complainants the EMIs were reduced from Rs40,209/- to Rs. 21,766/-.
OP also admitted that the EMIs carry an interest @ 14.25% per anum and
as per statement of account and repayment schedule a total of 7 EMIs
are due.  OP further stated that the complaint is barred by limitation
and requested to dismiss the complaint with cost.   In rejoinder
complainant opposed this reply and supported his complaint.
3.      In support of complaint complainants filed their own affidavits
along with the documents ,copy of address proof as Ex.CW1/A, copy of
loan agreement application as  Ex.CW1/B, copy of accounts statement as
Ex.CW/1/C copy of legal notice as Ex.CW1/D , copy of postal  receipt
asEx.CW1/E, copy of loan recall notice as Ex.CW1/F.
4.       In support of reply OP filed affidavit of Sh. Santosh Singh,
Manager along with document Ex. DW1/1.
5.      Both the parties filed written arguments.
6.      Heard both the parties and considered the evidence lay by the
parties along with their written arguments and perused file.  In this
case the points to be considered are as under :
(i)     Whether complainants are consumers?
(ii)    Whether complaint is barred by limitation?
(iii)   Where there is deficiency on the part of the Opposite Party?
(iv)    Relief.
7.      As OP has not objected the loan sanctioned by it to the
complainants hence complainants are consumers.
8.      As per statement of loan account Ex. CW1/C , last deduction of Rs.
21,766/- was made on 10.08.2013 and this complaint was filed on
18.02.2014. Hence it is within the period of limitation prescribed U/s
24 A of Consumer Protection Act. Hence not barred by limitation.
9.      As per the terms and conditions of the loan agreement dated
12.01.2006   (Ex. CW1/B) repayment of loan amount was to be made in 96
months and installment of   Rs. 40,209/- were made in 72 months
thereafter installment of Rs. 20,486/- were to be paid in next 24
months. It is pertinent to mention herein that this loan was
sanctioned with adjustable rate of interest ICICI Bank Floating
Reference Rate +/- 1.5 % p.a. = 7.25% p.a.    As per the repayment
schedule dated 18.08.2014 by OP rate of interest @7.25% was charged
from 10.2.2006 to 10.7.2006  thereafter rate of interest @ 8.675 was
charged from 10.8.2006  to 10.1.2007 but next rate of interest charged
from 10.02.2007 to 10.6.2017 are ranging from 9.25% to 14.25% much
higher than the agreed rate of interest  against the loan account no.
LBGHZ00001236245. Complainants made 72 installment of Rs. 40,209/-
upto 10.01.2012 with the rate of interest starting from 7.25 % to
14.25%. Hence as per the terms and conditions of the loan agreement (
Ex. CW1/B ) excess interest charged in violation of conditions of
agreement which clarify there is deficiency on the part of the OP.
Therefore, we are of the opinion that interest charged by the OP
against the terms and conditions of the above loan agreement is not
justified.
10.       Looking to the above facts and circumstances, OP is directed to
recalculate the loan amount pending against complainants on the basis
of the terms and conditions of the loan agreement strictly  with
maximum rate of interest i.e. 7.25 % + 1.25%  equals to 8.75% within a
period of 2 months and informed  the complainant statement of account
accordingly and refund the excess amount  charged if any. OP on the
basis of the recalculation as directed by the order may demand the
remaining balance if any from the complainant.  OP is further directed
to issue loan closure report or NOC to the complainant within this
period of two months  failing with an interest @ 10% p.a. will be
payable on the excess amount charged by  OP from complainant. Both the
parties will bear their own cost.
11.      If OP fails to comply with the order within two days, the
complainant may approach this forum U/s 25 or  27 or both of the
Consumer Protection Act 1986.
12.      Copy of the order be made available to the parties as per law.
File be consigned to record room.

Announced on ……….