Kerala

Idukki

CC/57/2019

Gopala Krishnan - Complainant(s)

Versus

Indus ind bank Ltd - Opp.Party(s)

26 Dec 2019

ORDER

DATE OF FILING : 18/03/19

IN THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI

Dated this the 26^th day of December 2019

Present :

SRI. S. GOPAKUMAR PRESIDENT

SMT.ASAMOL P. MEMBER

CC NO.57/2019

Between

Complainant : Gopalakrishnan, S/o Sankunni,

Erumanjanathu House,

Anchiri Kara, Aalakkodu, Thodupuzha.

And

Opposite Party : The Manager,

Indus Ind Bank Limited,

Vengalloor P.O., Vengalloor Signal Junction,

Thodupuzha.

 

O R D E R

SRI. S. GOPAKUMAR (PRESIDENT)

 

The case of the complainant is that,

 

Complainant availed a vehicle loan of Rs.40,000/- from opposite party bank on 17/08/15 agreed to repay it with interest @ 10% in 36 monthly EMI @ Rs.1500/- per month. Some of the EMI are remitted with some delay. But the complainant closed the vehicle loan by remitting whole loan amount and closed it before its tenure. Even after closing this loan opposite party is failed to issue the NOC of the vehicle when the complainant approach the bank, they demanded Rs.7900/- as loan dues. The complainant further averred that the opposite party bank authorities threatened him that if he fail to pay the loan dues they will initiate recovery steps against the complainant. When the complainant demanded the statement of account of this loan amount, the opposite party was reluctant to provide it.

 

Under this circumstances, the complainant filed this petition seeking relief such as to direct the opposite party to close the loan account and issue NOC to

 

(Cont........2)

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the complainant. Further direct the opposite party to pay compensation and cost.

 

Upon notice opposite party entered appearance and filed detailed reply version by admitting the loan transaction. In their version opposite party further contented that the sanctioned loan amount was Rs.38,500/- and its interest and other charges are calculated as Rs.13,844/- hence the total amount which the complainant is agreed to repay Rs.52,344/- in 36 equated monthly installments. In this loan complainant remitted on 7 EMI's regularly. From 8^th EMI to the last EMI were paid after the due date. The 7^th installment has returned from his account on 21/03/16, but he has paid that due amount on 13/05/16 ie, after 52 days. He paid his 8^th EMI, after a long gap of 44 days from the date of actual payment likewise till the lase EMI, the complainant paid after a long gap of its actual due date. Due to the delay in realization of the said EMI amounts, the additional interest is accrued in this loan account. As per the clause 2.10 (a) and 2.9 (f) of the loan agreement between the complainant and opposite party, the complainant shall pass 36 monthly ECS through his bank account only. The violation of the agreement shall attract penalty charges as per the first schedule of the agreement duly signed by the complainant.

 

Opposite party further contented that they are doing banking business by using public money and they giving interest to the depositors for their deposit. The opposite party bank charging Return charges and Additional Finance and other charges as per the Master Circular of the RBI having No.BC/21/09.07.006/2015-16 dated July 01, 2015. The complainant is well aware of the charges which were explained to him at the time of execution of the loan agreement amount. Therefore there is absolutely no delay of service and the complainant is not entitled to any relief in this case.

 

Evidence adduced by the complainant by way of proof affidavit and documents. Complainant was examined as PW1 and Ext.P1 to Ext.P4 were marked. Ext.P1 is a copy of petition submitted before the legal services authority, Ext.P2 is the copy of RC book, Ext.P3 is a notice of opposite party dated 01/03/17, Ext.P4(s) are the receipts.

 

(Cont........3)

-3-

From the opposite party side one Vidhukumar C.P., Legal Manager of opposite party examined as DW1. Ext.R1 to Ext.R5 were marked. Ext.R1 is the power of attorney, Ext.R2 is the loan agreements, Ext.R3 is the statement of account, Ext.R4 is the statement and Ext.R5 is the Master Circular.

 

Heard both sides,

 

The point that arose for consideration is whether there is any deficiency in service from the part of opposite parties, and if so, for what relief the complainant is entitled to ?

 

The Point:- We have heard the counsel for both parties and had gone through the records.

 

It is an admitted fact that opposite party sanctioned a vehicle loan to the complainant on 17/08/15, and as per the Ext.R2 loan agreement, complainant is agreed to pay the loan amount along with interest, of a total loan amount of Rs.52,344/- in 36 EMI's @ Rs.1,500/- for this loan the complainant is agreed to pay the monthly EMI's through ECS facility. As per the records, the ECS date allotted to the complainant in 21^st of every month. On perusing the records it is seen that complainant remitted only 6 installments through ECS facility regularly. From the 7^th installment onwards he was irregular in payment. Hence the opposite party was forced to charge penal interest and ECS bouncing charges substantiating imposition of penal charges. opposite party produced Ext.R5 Master Circular of RBI. As per the version of opposite party, in the light of the direction contained in the Master Circular, they levied penal charges in the defaulting loan.

 

On perusing Ext.R3 and Ext.R4 loan statement of account, it is found that complainant remitted whole loan amount and the loan dues is regarding the penal interest and ECS bouncing charge. Opposite party has not a case that complainant failed to remit the whole loan amount of Rs.52,344/-. It is very clear that the complainant remitted the whole loan amount within the period, but not as per the standing ECS mandate. He failed to remit the loan installments within the ECS date. So, normally the opposite party bank added penal interest in each

(Cont........4)

-4-

defaulted payments. Complainant is also admitted that due to some unforeseen circumference, he failed to remit the loan EMI's regularly at the due dates. As per Ext.R4 loan stated the balance amount due in the loan account is Rs.6065/- as on 21/07/18.

 

In their version the opposite party contented that opposite party is charging penal interest and ECS bouncing charges and other consolidated charges are based on Ext.R5 Circular of RBI. On perusing Ext.R5, RBI circular it is seen that the head “levy of service charges” the RBI given detailed direction of levying service charges, but no where it is stated that under which rate the bank can impose penal charges. Here also the opposite party bank is suppressed under what rate they imposed penal interest and ECS bouncing charges. In the Ext.R2 loan agreement rate of interest calculated in the loan amount is specifically stated. But no discussion regarding the penal interest and other incidental charges. In their reply version also there is no contention about the method is used in calculating the penal interest and other charges.

 

Under the above circumstances the Forum is of a considered view that, opposite party bank is liable to disclose all these things to their customers before sanctioning loans, otherwise the customer will be put to irresponsible loss and hardships.

 

In the present case, it is seen that the complainant remitted all the loan amount within the period, but he committed some delay in remitting some installments in its due date.

 

Hence the opposite party bank can allow some deductions in the balance loan dues on the reason that the complainant remitted whole loan amount with its duration.

 

Hence the complaint allowed in part. Complainant is directed to pay Rs.4000/- in the loan account within 30 days from the date of receipt of the copy of this order to the opposite party bank. If the complainant is approaching the opposite party along with the above said amount with the prescribed period, opposite party is directed to receive the amount and close the loan account and

(Cont........5)

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issue NOC of the vehicle for which the loan granted. If the complainant is failed to do so, opposite party shall proceed against the complainant as per the loan statement of account.

 

Pronounced in the Open Forum on this the 26^th day of December, 2019.

 

Sd/-

SRI. S. GOPAKUMAR (PRESIDENT)

Sd/-

SMT. ASAMOL P. (MEMBER)

 

APPENDIX

Depositions :

On the side of the Complainant :

PW1 -Gopalakrishnan

On the side of the Opposite Party :

DW1 -Vidhukumar C.P.

Exhibits :

On the side of the Complainant :

Ext.P1 - A copy of petition submitted before the legal services authority

Ext.P2 - The copy of RC book

Ext.P3 - A notice of opposite party dated 01/03/17

Ext.P4(s) - The receipts.

On the side of the Opposite Party :

Ext.R1 - The power of attorney

Ext.R2 - The loan agreements

Ext.R3 - The statement of account

Ext.R4 - The statement and Ext.R5 is the Master Circular.

 

Forwarded by Order,

 

SENIOR SUPERINTENDENT