Order-13.

Date-05/05/2015.

Complainant Hemanta Roy by filing this complaint has submitted that in the year 2010 complainant took a loan for purchasing a lorry having loan account No. 924257072 and loan amount was Rs. 9,34,500/- at the rate of interest of 15 percentp.a. and at the time of loan sanction, the rate of interest may float slightly 0.25 percentto 0.5 percentmaximum according to RBI Rules & Regulations and after getting the loan, complainant came to know that the rate of interest for similar loan in other Nationalised Banks was only 11.75 percentat the same period of time and this was 3.25 percentlower than Indian Bank.

          Still complainant has paid the loan amount with interest which was 3.25 percentmore than other banks at regular time intervals and further the bank increased the rate of interest from 15 percentto 19.25 percentwithout giving any information to the complainant.

          On his last payment when he deposited Rs. 84,956/- by closing his father’s fixed deposit account when he came to know that the remaining money is very high they should be at the rate of interest 15 percentp.a. and on enquiry complainant came to know that the bank increased the rate of interest of his loan up to 19.25 percentwithout any information.  So, complainant wanted to know from the authority about that and practically ops have cheated the complainant by mentioning floating word during loan and Indian Bank threatened the complainant to pay the excess amount which is due to increase rate of interest otherwise it will take over his vehicle and his name is given in CIBIL.

          But complainant already paid Rs. 12,10,508/- in terms of loan amount which was Rs. 9,34,500/- in 4 years.  Indian Bank had charged higher rate of interest than other nationalized banks up to 8 percenthigher and bank does not provide any information about the hike in rate of interest to the complainant and bank increased the rate of interest of the loan up to 5 percenthigher within 8 months from the sanction of loan without any information and on the basis of interest rate of other nationalized banks, the total loan amount with interest should be Rs. 11,75,732/- at the rate of interest 11.75 percentat that time and still now, but complainant already paid Rs. 12,10,508/-.  Therefore, on the basis of this calculation, complainant already paid excess amount of Rs. 34,776/- to the said bank.  But bank has deceived the complainant and practically recovered the excess amount.  But ops are not willing to defy the matter and practically deceived the complainant for which the complaint is filed for relief.

          On the other hand op/bank by filing written statement submitted that by sanctioning ticket dated 11.12.2010 a term loan having limit of Rs. 9.35 lakhs was granted to the complainant and loan was repayable by floating rate of interest and at the grant of loan it was 15 percentp.a. due to revision of interest rate by the RBI/market force over a period of time interest rate went up to 19.25 percentand it was 18.75 percentas on 11.11.2014 and so the account was classified.  But complainant did not pay the balance amount for which the account was classified as non-performing assets on 31.12.2014.  But it is specifically mentioned by the op/Bank that op/Bank is fully bound to comply with the Reserve Bank of India guide line and the concept of floating rate of interest is provided by the guidelines of Reserve Bank of India and no excess rate of interest was charged and the complainant’s claim is completely false and fabricated for which the case is dismissed.

                                                       Decision with reasons

          On proper consideration of the entire complaint and written version it is clear that complainant was granted loan and limit of loan was Rs. 9.35 lakhs.  Practically rate of interest was not noted there, but when the op submitted the copy of the said loan for paying it is noted only 15%.

          After hearing the Ld. Lawyers of the op and the complainant and also considering the sanctioning the ticket of loan, it is clear that Scoring of the A/C: AA as on 09.06.2010 (Ref No. 144079) and as per revised interest rate structure linked to base rate w.e.f. 01.04.2014 it is found that Scoring A/c AA means Micro Enterprises above Rs. 2 lac and up to Rs. 25 lakhs (Excluding TP) and that rate was declared by the Reserve Bank of India and also in the website of op/Bank and from that rate charge it is clear that from 01.04.2014 against A grade loan base rate is 10.25%, credit risk premium 1.00 and operating expenses 1.00 and total spread 2.00 and Reserve Bank of India total rate of interest is 12.25 percentin respect of Micro Enterprises above Rs. 2 lakhs and up to Rs. 5 lakhs (excluding TP).

          After considering the said revised rate interest rate structure Base Rate w.e.f. 01.04.2014 it is clear that Small Enterprises above Rs. 2 lakhs and up to Rs. 5 lakhs (Excluding TP), rate of interest is 12.75 percentand after considering the said base rate structure of the Reserve Bank of India and the present op/Bank, it is clear that at any point of time in respect of the loan in between Rs. 2 lakhs to Rs. 25 lakhs and in respect of scoring of the account structure AA rate of interest rate was never above 12.75 percentand 15 percentinterest was fixed for BBB Scoring account, not for scoring account AA of present complainant’s account.  So, invariably the interest rate is 12.25 percenteven after floating rate.

          Fact remains that op/Bank when submitted their copy, it is found that interest rate is noted 15 percentin pen ink and no doubt it was subsequently added in view of the fact that revised interest rate structure to basic rate w.e.f. 01.04.2014 as published by the Reserve Bank of India is same and in fact the rate of interest cannot be more than 12.75%, whereas rate of interest linked to base rate, the op/Bank was entitled to charge 10.25 percentw.e.f. 09.02.2013.  So, from the revised interest rate structure linked to base rate w.e.f. 01.04.2014 as published by RBI including the op/Bank, it is clear that rate of interest was not more 12.75 percentand ultimately op has admitted that they are guided by RBI guidelines and in fact when the above documents are placed before this Forum he did not deny that revised rate of interest of RBI as published by op/Bank also.

          Further in the bank website, the said rate of interest was declared and that is submitted by the complainant and against that op’s Ld. Lawyer has failed to give any satisfactory answer.  So, considering all the above fact and circumstances, we are convinced to hold that rate of interest in respect of present loan was highest to the extent of 12.75 percentw.e.f. 01.04.2014 and prior to that the rate of interest was 11.25%.

          So, considering all the above fact and circumstances and materials including the rate of interest in respect of the present loan, we are convinced to hold that the charging interest rate is 15 percentover the loan amount is completely without any basis and not as per RBI rate of interest and also the rate of interest as declared by the present op/Bank in their website and in respect of op submitted the papers but in fact op’s Ld. Lawyer did not give any satisfactory reply and in the written statement also op tried to convince that rate of interest is charged 15 percentto 19 percentwhich is completely absurd and op has failed to give any satisfactory explanation for charging such a higher rate of interest when op bank declared the rate of interest as per RBI revised interest rate of structure linked to base rate w.e.f. 01.04.2014 and prior to that w.e.f. 09.02.2013.

          Truth is that loan was sanctioned on 11.12.2010 and admitted fact is that complainant already paid Rs. 12,10,508/- against loan amount of Rs. 9,34,500/-.  So after calculating the interest rate i.e. 11.75 percentinitially and subsequently it was raised up to 12.75 percentwe find that no doubt complainant has already paid the entire loan amount including the rate of interest and fact remains that after calculation, it is found that op/Bank has charged no doubt excess amount.  But assessing the interest  at the rate 12.75%, we are convinced to hold that total amount with interest is Rs. 11,90,000/-.  But complainant already paid Rs. 12,10,508/-.  So, invariably it is proved that complainant’s entire loan amount has already been cleared but without considering the RBI rate as already mentioned including the rate as adopted by the op and published by the op online, it is clear that complainant’s entire loan amount is satisfied along with interest and excess amount of Rs. 20,508/- so, invariably complainant has paid excess amount of Rs. 20,508/- what complainant is entitled to get from the op and op any sort of claim of the loan account is completely uncalled for, without any foundation and against the RBI rate of interest as declared and admitted by the op and under any circumstances, ops have their no right to declare this as A and without any it is completely declared illegal and without any foundation.  For the said reasons also ops reference to the CIBIL list for recording the name of the complainant is also illegal and uncalled for and without any legal foundation.

          So, in the circumstances, after considering the entire materials and documents, we are convinced to hold that this consumer dispute as made by the complainant bears merit in the eye of law and the action as made by the op is no doubt against the principal of rendering service and no doubt negligent and deficient in manner of service and at the same time the act of the op is no doubt an act of deceiving the complainant in such a manner.  So, invariably complainant is entitled to get a relief accordingly.

          Hence, it is

                                                             ORDERED

          That the complaint be and the same is allowed on contest with cost of Rs. 5,000/- against the op.

          Op/Bank to treat this account as loan account as fully satisfied, there is no dues from the complainant and op/Bank shall have to issue NOC during this loan account as finally settled and also shall have to return the excess paid amount of Rs. 20,508/- to the complainant and also to cancel such letter of declaration of loan account as NPA and further ops are directed to delete the name of complainant from CIBIL List because all those acts are not legal in view of the fact entire assessment of interest etc. are found not as per RBI guideline and also as per notification of the op but arbitrarily.

          Op is directed to comply the order within one month from the date of this order and to submit the comply report and hand over NOC with all document at once including agreement on hypothecation of movable property etc.

          If op fails to comply the order within the stipulated time, in that case for non-compliance of the Forum’s order, op shall have to pay penal interest  at the rate Rs. 5,000/- per month till full satisfaction of the decree and if it is collected, it shall be deposited to this Forum also and even if this op is reluctant to comply the order, in that case, op shall be prosecuted u/s 27 of C.P. Act 1986 and for which further penalty and fine shall be imposed.

Complainant Hemanta Roy by filing this complaint has submitted that in the year 2010 complainant took a loan for purchasing a lorry having loan account No. 924257072 and loan amount was Rs. 9,34,500/- at the rate of interest of 15 percentp.a. and at the time of loan sanction, the rate of interest may float slightly 0.25 percentto 0.5 percentmaximum according to RBI Rules & Regulations and after getting the loan, complainant came to know that the rate of interest for similar loan in other Nationalised Banks was only 11.75 percentat the same period of time and this was 3.25 percentlower than Indian Bank.

          Still complainant has paid the loan amount with interest which was 3.25 percentmore than other banks at regular time intervals and further the bank increased the rate of interest from 15 percentto 19.25 percentwithout giving any information to the complainant.

          On his last payment when he deposited Rs. 84,956/- by closing his father’s fixed deposit account when he came to know that the remaining money is very high they should be at the rate of interest 15 percentp.a. and on enquiry complainant came to know that the bank increased the rate of interest of his loan up to 19.25 percentwithout any information.  So, complainant wanted to know from the authority about that and practically ops have cheated the complainant by mentioning floating word during loan and Indian Bank threatened the complainant to pay the excess amount which is due to increase rate of interest otherwise it will take over his vehicle and his name is given in CIBIL.

          But complainant already paid Rs. 12,10,508/- in terms of loan amount which was Rs. 9,34,500/- in 4 years.  Indian Bank had charged higher rate of interest than other nationalized banks up to 8 percenthigher and bank does not provide any information about the hike in rate of interest to the complainant and bank increased the rate of interest of the loan up to 5 percenthigher within 8 months from the sanction of loan without any information and on the basis of interest rate of other nationalized banks, the total loan amount with interest should be Rs. 11,75,732/- at the rate of interest 11.75 percentat that time and still now, but complainant already paid Rs. 12,10,508/-.  Therefore, on the basis of this calculation, complainant already paid excess amount of Rs. 34,776/- to the said bank.  But bank has deceived the complainant and practically recovered the excess amount.  But ops are not willing to defy the matter and practically deceived the complainant for which the complaint is filed for relief.

          On the other hand op/bank by filing written statement submitted that by sanctioning ticket dated 11.12.2010 a term loan having limit of Rs. 9.35 lakhs was granted to the complainant and loan was repayable by floating rate of interest and at the grant of loan it was 15 percentp.a. due to revision of interest rate by the RBI/market force over a period of time interest rate went up to 19.25 percentand it was 18.75 percentas on 11.11.2014 and so the account was classified.  But complainant did not pay the balance amount for which the account was classified as non-performing assets on 31.12.2014.  But it is specifically mentioned by the op/Bank that op/Bank is fully bound to comply with the Reserve Bank of India guide line and the concept of floating rate of interest is provided by the guidelines of Reserve Bank of India and no excess rate of interest was charged and the complainant’s claim is completely false and fabricated for which the case is dismissed.

                                                       Decision with reasons

          On proper consideration of the entire complaint and written version it is clear that complainant was granted loan and limit of loan was Rs. 9.35 lakhs.  Practically rate of interest was not noted there, but when the op submitted the copy of the said loan for paying it is noted only 15%.

          After hearing the Ld. Lawyers of the op and the complainant and also considering the sanctioning the ticket of loan, it is clear that Scoring of the A/C: AA as on 09.06.2010 (Ref No. 144079) and as per revised interest rate structure linked to base rate w.e.f. 01.04.2014 it is found that Scoring A/c AA means Micro Enterprises above Rs. 2 lac and up to Rs. 25 lakhs (Excluding TP) and that rate was declared by the Reserve Bank of India and also in the website of op/Bank and from that rate charge it is clear that from 01.04.2014 against A grade loan base rate is 10.25%, credit risk premium 1.00 and operating expenses 1.00 and total spread 2.00 and Reserve Bank of India total rate of interest is 12.25 percentin respect of Micro Enterprises above Rs. 2 lakhs and up to Rs. 5 lakhs (excluding TP).

          After considering the said revised rate interest rate structure Base Rate w.e.f. 01.04.2014 it is clear that Small Enterprises above Rs. 2 lakhs and up to Rs. 5 lakhs (Excluding TP), rate of interest is 12.75 percentand after considering the said base rate structure of the Reserve Bank of India and the present op/Bank, it is clear that at any point of time in respect of the loan in between Rs. 2 lakhs to Rs. 25 lakhs and in respect of scoring of the account structure AA rate of interest rate was never above 12.75 percentand 15 percentinterest was fixed for BBB Scoring account, not for scoring account AA of present complainant’s account.  So, invariably the interest rate is 12.25 percenteven after floating rate.

          Fact remains that op/Bank when submitted their copy, it is found that interest rate is noted 15 percentin pen ink and no doubt it was subsequently added in view of the fact that revised interest rate structure to basic rate w.e.f. 01.04.2014 as published by the Reserve Bank of India is same and in fact the rate of interest cannot be more than 12.75%, whereas rate of interest linked to base rate, the op/Bank was entitled to charge 10.25 percentw.e.f. 09.02.2013.  So, from the revised interest rate structure linked to base rate w.e.f. 01.04.2014 as published by RBI including the op/Bank, it is clear that rate of interest was not more 12.75 percentand ultimately op has admitted that they are guided by RBI guidelines and in fact when the above documents are placed before this Forum he did not deny that revised rate of interest of RBI as published by op/Bank also.

          Further in the bank website, the said rate of interest was declared and that is submitted by the complainant and against that op’s Ld. Lawyer has failed to give any satisfactory answer.  So, considering all the above fact and circumstances, we are convinced to hold that rate of interest in respect of present loan was highest to the extent of 12.75 percentw.e.f. 01.04.2014 and prior to that the rate of interest was 11.25%.

          So, considering all the above fact and circumstances and materials including the rate of interest in respect of the present loan, we are convinced to hold that the charging interest rate is 15 percentover the loan amount is completely without any basis and not as per RBI rate of interest and also the rate of interest as declared by the present op/Bank in their website and in respect of op submitted the papers but in fact op’s Ld. Lawyer did not give any satisfactory reply and in the written statement also op tried to convince that rate of interest is charged 15 percentto 19 percentwhich is completely absurd and op has failed to give any satisfactory explanation for charging such a higher rate of interest when op bank declared the rate of interest as per RBI revised interest rate of structure linked to base rate w.e.f. 01.04.2014 and prior to that w.e.f. 09.02.2013.

          Truth is that loan was sanctioned on 11.12.2010 and admitted fact is that complainant already paid Rs. 12,10,508/- against loan amount of Rs. 9,34,500/-.  So after calculating the interest rate i.e. 11.75 percentinitially and subsequently it was raised up to 12.75 percentwe find that no doubt complainant has already paid the entire loan amount including the rate of interest and fact remains that after calculation, it is found that op/Bank has charged no doubt excess amount.  But assessing the interest  at the rate 12.75%, we are convinced to hold that total amount with interest is Rs. 11,90,000/-.  But complainant already paid Rs. 12,10,508/-.  So, invariably it is proved that complainant’s entire loan amount has already been cleared but without considering the RBI rate as already mentioned including the rate as adopted by the op and published by the op online, it is clear that complainant’s entire loan amount is satisfied along with interest and excess amount of Rs. 20,508/- so, invariably complainant has paid excess amount of Rs. 20,508/- what complainant is entitled to get from the op and op any sort of claim of the loan account is completely uncalled for, without any foundation and against the RBI rate of interest as declared and admitted by the op and under any circumstances, ops have their no right to declare this as A and without any it is completely declared illegal and without any foundation.  For the said reasons also ops reference to the CIBIL list for recording the name of the complainant is also illegal and uncalled for and without any legal foundation.

          So, in the circumstances, after considering the entire materials and documents, we are convinced to hold that this consumer dispute as made by the complainant bears merit in the eye of law and the action as made by the op is no doubt against the principal of rendering service and no doubt negligent and deficient in manner of service and at the same time the act of the op is no doubt an act of deceiving the complainant in such a manner.  So, invariably complainant is entitled to get a relief accordingly.

          Hence, it is

                                                             ORDERED

          That the complaint be and the same is allowed on contest with cost of Rs. 5,000/- against the op.

          Op/Bank to treat this account as loan account as fully satisfied, there is no dues from the complainant and op/Bank shall have to issue NOC during this loan account as finally settled and also shall have to return the excess paid amount of Rs. 20,508/- to the complainant and also to cancel such letter of declaration of loan account as NPA and further ops are directed to delete the name of complainant from CIBIL List because all those acts are not legal in view of the fact entire assessment of interest etc. are found not as per RBI guideline and also as per notification of the op but arbitrarily.

          Op is directed to comply the order within one month from the date of this order and to submit the comply report and hand over NOC with all document at once including agreement on hypothecation of movable property etc.

          If op fails to comply the order within the stipulated time, in that case for non-compliance of the Forum’s order, op shall have to pay penal interest  at the rate Rs. 5,000/- per month till full satisfaction of the decree and if it is collected, it shall be deposited to this Forum also and even if this op is reluctant to comply the order, in that case, op shall be prosecuted u/s 27 of C.P. Act 1986 and for which further penalty and fine shall be imposed.