DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, BARNALA, PUNJAB.

 

Complaint Case No : CC/93/2023

Date of Institution   : 02.08.2023

Date of Decision    : 15.05.2024

Chetan Singh aged about 68 years son of Sh. Kesar Singh resident of Dhaner Road, Village, Kalal Majra, District Barnala.       

                          …Complainant Versus

Kotak Mahindra Prime Limited, Modal Town, SCF-25 Phase-2, Liberty Chowk, Civil Line Bathinda (Punjab)-151001, through its Branch Manager. 

                            …Opposite Party

 

Complaint Under Section 35 of Consumer Protection Act, 2019.

Present: Sh. Ramandeep Rajput counsel for complainant.

Opposite part exparte.

Quorum:-

1. Sh. Jot Naranjan Singh Gill : President

2.Sh. Navdeep Kumar Garg : Member

 

ORDER

JOT NARANJAN SINGH GILL, PRESIDENT

1. The complainant namely Chetan Singh has filed the present complaint under Section 35 of the Consumer Protection Act 2019, (amended upto date) against Kotak Mahindra Prime Limited (hereinafter referred as opposite party).   

2. The facts leading to the present complaint are that the complainant is the consumer of the opposite party as he has availed a no cost loan facility of Rs. 2,30,000/- vide Loan Agreement dated 31.1.2018 under Loan Account No. CF15386496 for finance of car of Maruti Sazuki Alto 800 with the hypothecation of said car and the monthly EMI, for the returning of above mentioned loan alongwith interest was fixed by the opposite party as 60 installments in total. The monthly returning of loan EMI was to be started from 5.3.2018 and loan maturity date was fixed as 5.5.2023 and all the installments were divided as 24 installments each of Rs. 5,400/- and 36 installments each of Rs. 5,597/-. It is further alleged that the original loan agreement and the annexed documents are within the custody of opposite party. At the time of the preparing papers of loan/finance the opposite party had taken the signatures of the complainant on some blank forms and papers without read over and explained to the complainant and also had taken blank cheques, under the signatures of the complainant only as security. The complainant has deposited all the installments with the opposite party and some of the installments have been deposited by transfer from saving account of the complainant in Punjab National Bank, Branch Mehal Kalan and some have been taken by way of cheque already within the custody of opposite party and many of the installments have been deposited in cash, which were duly received by the opposite party but no receipt was issued for the same. However, the receiving of the installments have been duly mentioned in the statement of account supplied to the complainant. But however, during the corona period some of the installments were deposited after the due date for which the opposite party had no right to charge any penalty as it was the pandemic decease all over the world. It is alleged that the loan maturity date was fixed as 5.5.2023 as such on 11.5.2023 when the complainant approached with the opposite party for taking the no due certificate, the opposite party told the complainant that an amount of Rs. 1,42,743/- is outstanding against him. The complainant got shocked and told the opposite party that all the installments have been deposited then how such an huge amount of Rs. 1,42,743/- is outstanding against him, then the opposite party supplied the statement of loan account the complainant for which it had come to the knowledge that in the column “Installments Bonus Charges” the opposite party has shown 160 installments as dishonored and an amount of Rs. 885/- for each dishonor has been illegally added as penalty to the balance due in the loan account of the complainant which is totally against the law rules and regulations and against the natural justice. It is alleged that during the period of installments each installment fall to be due on the fifth day of every month and if the complainant has deposited the monthly installment on proper time i.e. on the day on which it falls due, then the opposite party has no legal right to charge any penalty or any other amount towards that deposit installment upto the fifth day of next month on which day next installment falls due, and also has no legal right to present the cheque again and again within that period, and to dishonor the cheque again and again, and to charge the penalty in the loan account of the complainant. But in the present complaint, the opposite party has done such illegal acts without any right to do so. The above mentioned statement of account issued on 11.5.2023 as supplied to the complainant prima-facie on the face of it appears to be containing illegal entries, just to charge such amount from the complainant as penalty, in an illegal way. Those entries in the said statement of account liable to be declared to be null and void against the natural justice and not binding upon the complainant and the said entries cannot be understood-able by a reasonable man of ordinary prudence. The  above said act of the opposite party amounts to deficiency in service and unfair trade practice on its part. Hence, the present complaint is filed for seeking the following reliefs.- 

i)To issue the No Objection Certificate, certifying that the complainant has cleared the loan amount alongwith interest and no amount is due towards the complainant.

ii)Not to receive any further amount from the complainant, by way of principal or interest or penalty or otherwise, regarding the above mentioned loan;

iii)to compensate the complainant, with compensation of Rs. 1,00,000/- on account of physical and mental harassment to the complainant;

iv)to compensate the complainant, with compensation of Rs. 20,000/- for engaging the counsel and litigation expenses.  

3. Notice was sent to the opposite party but they failed to appear and was proceeded against exparte vide order dated 4.10.2023.  

4. To prove his case the complainant tendered into evidence copy of adhaar card Ex.C-1, copy of RC Ex.C-2, copy of statement of account Ex.C-3 (containing 41 pages), copy of letter dated 7.11.2023 Ex.C-4, copy of letter dated 19.12.2023 Ex.C-5, his own affidavit Ex.C-6 and closed the evidence. 

5. We have heard the learned counsel for the complainant and have gone through the record on file. Written arguments filed by the complainant.

6. In order to prove his case, the complainant has placed on record copy of his adhaar card Ex.C-1. He has further placed on record copy of Certificate of Registration PB19R1812 which shows that the complainant is the owner of Maruti Suzuki Alto 800. Ex.C-3 is the copy of statement of account which shows that the complainant has financed loan amount of Rs. 2,30,000/- and the loan tenure in months shows as 60, loan EMI Start date 05-Mar-18, loan maturity date 05 May-23. Ex.C-3 further shows the installment pattern monthly from 05 Mar-18 to 05-Feb-20 No. of installments 24 with EMI amount of Rs. 5,400.00 and the total EMI amount Rs. 1,29,600.00 and monthly from 05-Jun-20 to 05-May-23 No. of installments 36 with EMI amount of Rs. 5,597.00 and the total EMI amount Rs. 201,492.00. Further, from Ex.C-3 (at Page No. 33) it shows that No. of Installment Banked 167, No. of Installment Cleared 7 and No. of Installment Dishonoured 160 and an amount of Rs. 1,42,743.80 total payable as on date. In Ex.C-3 it further shows that number of installments have been dishonored due to insufficient  balance. The complainant has also placed on record copy of letter dated 7.11.2023 Ex.C-4 which was written by the opposite party to the complainant vide which it has been written that due to delay in the remittance of your periodical EMI's Rs. 1,43061.00 have been accrued to your account as on 7.11.2023 towards Ecs Bouncing Charges/Cheque Dishonour Charges and/or Delayed Payment Charges and/or Overdue Interest and/or Collection charges and/or Legal Charges and/or any other incidental charges collectively referred as Penal Charges. Ex.C-5 is another copy of letter dated 19.12.2023 which was written by the opposite party to the complainant on the similar facts as mentioned in previous letter Ex.C-4. Ex.C-6 is the affidavit of complainant vide which he reiterated the averments as mentioned in the complaint. 

7. So, from the perusal of file it is established that the complainant has availed the loan from the opposite party to the tune of Rs. 2,30,000/- and as per statement of account Ex.C-3 the complainant has paid the entire loan amount to the opposite party. But the opposite party on the other hand demanded in Ex.C-3 an amount of Rs. 1,42,743.00 which is still outstanding against the complainant on the grounds of dishonored/penalty and other charges. Further, from the perusal of Ex.C-3 it shows that a number of times a cheque has been presented by the opposite party to their Bank but the opposite party has failed to justify that as to why they have presented the cheque again and again in the same month. Ld. Counsel for the complainant argued that at the time of loan agreement no terms and conditions ever supplied or given to the complainant regarding overdue/dishonor or bouncing charges and it was also not disclosed that the same will be recovered by the opposite party from the complainant.

8. To support its case the complainant has relied upon the judgment of the Hon'ble State Consumer Disputes Redressal Commission, Punjab, Chandigarh in First Appeal No. 544 of 2013 decided on 10.9.2015 in case titled HDFC Bank Ltd. Vs Onkarpreet Singh vide which the Hon'ble State Commission held in Para No. 7 that the only dispute in this case is whether the opposite parties were justified in demanding the cheque bouncing charges and overdue charges from the complainant or not? The District Forum has recorded the positive finding that there is no agreement between the parties placed on record regarding this point, where from the terms and conditions could be ascertained, to the effect that the complainant was bound to pay the cheque bouncing charges and overdue charges to opposite parties. Even otherwise, from perusal of file, we find no such agreement regarding the terms and conditions, under which overdue charges and bouncing charges could be recovered by the opposite parties from the complainant. In the absence of any agreement, terms and conditions or rules and regulations, we are of this view that opposite parties are not justified in levying such type of cheque bouncing charges and overdue charges in the loan account of the complainant. Further, in Para No. 8 the Hon'ble State Commission held that consequently, we have come to this conclusion that in the absence of any agreement, terms and conditions or rules and regulations, the opposite parties are not justified in levying the overdue charges and cheque bouncing charges from the complainant. The order of the District Forum cannot be said to be illegal in any manner calling for any interference therein in this appeal. 

9. On the other hand, the opposite party has preferred to remain exparte and no one has come forwarded from the side of the opposite party to contest the allegations of the complainant, which are otherwise appears to be genuine and supported by various documents, in that event, we have no alternative except to believe the evidence produced by the complainant, which is un-rebutted. Hence, the opposite party is liable for the deficiency in services and unfair trade practice. 

10. As a result of the above discussion, the present complaint is partly allowed against the opposite party and the opposite party is directed to issue the No Objection Certificate regarding the clearance of loan amount. The opposite party further directed not to demand any further amount from the complainant by way of interest or penalty or other charges regarding the above mentioned loan. The opposite party is also directed to pay the amount of Rs. 3,300/- as consolidated amount of compensation and litigation expenses to the complainant.  

11. Compliance of the order be made within the period of 45 days from the date of the receipt of the copy of this order.

12. Copy of this order be supplied to the parties free of costs as per rules. File be consigned to the records after its due compliance. 

ANNOUNCED IN THE OPEN COMMISSION:

       15th Day of May, 2024

 

            (Jot Naranjan Singh Gill)

            President

 

(Navdeep Kumar Garg)

Member