THE KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION
THIRUVANANTHAPURAM.
COMPLAINT NO- 09/2013
JUDGMENT DATED. 06/01/2017
PRESENT:-
JUSTICE. SRI. P.Q.BARKATH ALI: PRESIDENT
COMPLAINANT:
Smt. Sreekala . T, W/o. Radhakrishnan,
Puthupurackal House, Ponnezha, Thekkekara P.O,
Mavelikkara 690107.
(By Adv. S. Sunil Narayanan)
V/s.
OPPOSITE PARTY:
The Branch Manager,
Indian bank, Thyccaud Branch,
Nirmala Building, Meetukkada Junction,
Thyccaud, Thiruvananthapuram, 695014.
(By Adv. S. Sreekumaran Nair)
(2)
JUDGMENT
JUSTICE. SRI. P.Q.BARKATH ALI: PRESIDENT
This is a complaint filed by the complainant under section 17 of the Consumer Protection Act claiming refund of the amount paid by the complainant to close the loan of her deceased husband along with a compensation of Rs. 10 lakhs.
The case of the complainant as detailed in the complaint in brief is this.
The husband of the complainant, deceased Radhakrishnan availed a housing loan of Rs. 20 lakhs from the opposite party bank on December 11, 2008 as special home loan which has to be covered under Griha Jeevan Policy . Husband of the complainant died on September 25, 2010. At that time the amount outstanding balance in the loan amount was Rs. 15,78,405/-. When complainant approached
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opposite party to close the loan she was informed that there is no insurance coverage for the loan amount. Therefore she was compelled to pay Rs. 16, 54,743/- to close the loan amount in January 2013. To the notice issued by the complainant , opposite parties sent a reply stating that Griha Jeevan Insurance Policy was not a sanction condition for granting the loan, which is not correct. Therefore there is clear deficiency in service on the part of the opposite parties. Complainant claimed refund of Rs. 16,54, 743/- along with interest and a compensation of Rs. 10 lakhs.
Opposite party is the Bank Branch Manager, Thyccauad Branch,
Indian Bank, Thiruvananthapuram. He in his version contended thus. It is true that husband of the complainant, Late Radhakrishnan availed home loan to purchase a property with building on December 26, 2008 for Rs. 20 lakhs. Special home loan is applicable to residents only. Husband of the complainant was a non- resident Indian.
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Therefore normal loan scheme was granted which is not covered under Griha Jeevan Policy. It is a scheme formed by LIC mortgage redumption assurance scheme. It is not compulsory to take the said policy. No obligation or duty is cast on the Bank to enroll borrowers under Indian Bank Griha Jeevan Schem. To join in policy borrower has to submit application. Cum - declaration of good health which the complainant did not do. Therefore there is no deficiency of service on the part of opposite party. That being so complaint has to be dismissed.
On the side of the complainant PW1 and PW2 were examined and Exbt. A1 to A8 were marked. On the side of the opposite party DW1 was examined and Exbt. B1 to B5 were marked.
Heard both the counsels.
The following points arise for consideration.
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- Whether there is any deficiency in service on the part of the opposite party?
- What are the reliefs complainant is entitled to?
It is admitted that deceased husband of the complainant availed a housing loan from the opposite party Bank for Rs. 20 lakhs on December 22, 2008. Complainant was a co-borrower. Husband of the complainant died on September 25, 2010. At that time the out standing amount of loan amount was Rs. 15,78,405/-.
According to the complainant the loan amount is covered by a ‘Indian Bank Griha Jeevan Insurance policy’ and that the opposite parties did not take that insurance policy and that therefore complainant was compelled to pay the entire amount due under the loan. Alleging deficiency of service complainant claimed refund of that amount and a compensation of Rs. 10 lakhs.
On the side of the complainant she was examined as Pw1 and her brother Suresh was examined as Pw2. She produced Exbt.A1 to A8.
(6)
Exbt.A1 is loan sanction ticket. Exbt.A2 is the terms and conditions of the loan. Exbt.A3 is the repayment scheme. Exbt. A4 is the death certificate of the husband of the complainant. Exbt.A5 and Exbt. A6 are request letters sent by the complainant to the opposite party. Exbt.A7 is reply sent by the Bank. Exbt.A8 is the documents obtained under Right to Information act regarding the scheme.
On the side of the opposite party Bank the Branch Manager was examined as DW1 and he produced Exbt.B1 to B5. Exbt. B1 is the details of the policy. Exbt.B2 is the copy of loan agreement . Exbt.B3 is the copy of pronote. Exbt.B4 is the Acknowledgement of debt renewal.
Case of the opposite party Bank is that loan availed by the husband of the complainant is a normal housing loan and a special housing loan scheme is applicable to residents only and admittedly husband of the complainant is a non resident Indian. The Manager of the Bank as DW1 testified that the said loan scheme was not covered
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by the Indian Bank Griha Jeevan Policy for which a declaration regarding the health of policy holder is required. There is no merit in the above contention of the opposite party. In Exbt.A2 terms and conditions of the loan it is clearly stipulated that the loan granted is a special loan scheme and that free life insurance cover for the entire amount of outstanding loan will be provided to the borrower. It is further provided therein that the loan under the scheme shall be covered under Indian Bank Griha Jeevan Policy at the cost of the Bank . Thus it is for the opposite party to provide Life Insurance cover for the said loan which they did not do which amounts to deficiency of service on the part of opposite party.
It is admitted that to close the loan complainant had to pay Rs. 16, 54,743/- which the Bank is bound to refund. As there is deficiency of service on the part of opposite parties, Bank is also bound to pay compensation to the complainant. Instead of awarding compensation interest at the rate of 12% on the said amount is granted from the date
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of complainant till realization. In this complaint complainant is entitled to a cost of Rs. 10,000/-.
In the result, the complaint is allowed in part as found above.
JUSTICE .P.Q. BARKATH ALI: PRESIDENT
APPENDIX
Exbts for complainant
PW1- Smt. Sreekala
PW2- Sri. S. Suresh Kumar
Exbt.A1- loan sanction ticket dated. 22.12.2008
Exbt.A2- Terms and conditions of the loan
Exbt.A3 - Repayment scheme
Exbt. A4- Death certificate of the husband of the complainant
Exbt.A5 & Exbt. A6- Request letters sent by the complainant to the opposite party
Exbt.A7 - Reply sent by the Bank.
. Exbt.A8 - Documents obtained right under to information act regarding the scheme.
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Exbts for opposite party:
DW1- Smt. Bindu M.N
Exbt. B1- Details of the policy.
Exbt.B2 - Copy of loan agreement .
Exbt.B3- copy of pronote dated. 26-12-2008
Exbt.B4 - Acknowledgement of debt renewal dated. 29/10/2011.
JUSTICE .P.Q. BARKATH ALI: PRESIDENT
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