KERALA STATE CONSUMER DISPUTES REDRESSAL COMIISSION VAZHUTHACAUD, THIRUVANANTHAPURAM
APPEAL No.1032/2004
JUDGMENT DATED : 30.11.2010
PRESENT:-
JUSTICE SHRI.K.R.UDAYABHANU : PRESIDENT
SHRI.M.K.ABDULLA SONA : MEMBER
APPELLANT
The Manager,
Canara Bank,
Pudesserri Branch,
Kanjikode, Palakkad.
(Rep. by Adv. Sri. V.B. Hari Narayan).
Vs
RESPONDENT
Kunjan,
S/o Chinnayan Chettiyar,
Puthenthediyil,
‘Udayam Nivas’,Mukratteni,
Kanjikkode, Palakkad.
(Rep. by Adv. Sri. C.D. Dileep )
JUDGMENT
SHRI. M.K. ABDULLA SONA : MEMBER
This appeal prefers from the order passed by the CDRF, Palakkad in O.P. No. 139/2002 dated 31.08.2004. The appellant is the opposite party and the respondent is the complainant respectively. The appellant prefers this appeal from the impugned order passed by the Forum below, that the opposite party is directed to pay Rs. 2,000/- towards compensation for mental agony and hardship of complainant and Rs. 1,000/- to the cost of the complaint, after returning the original documents of the complainant, which mortgaged with them to the complainant within one week of the receipt of the order of the Forum below.
In short, this dispute arised in connection with a bank loan availed by the complainant from the opposite parties after mortgaged his original documents. The complainant already repaid the loan amount as per the agreement, (108 monthly installments of Rs. 4,25/- each from 7.1.1991). He paid total Rs. 46,325/- inclusive of interest. But after the payment of this amount the opposite party did not returned the original documents to the complainant. The complainant issued a notice to the bank and the bank would prayed that the loan amount was not fully tested since the interest rate has been enhanced during the continuance of the loan as per RBI guidance but the complainant alleged that he has not legally bound to pay the enhanced rate of interest and he raised an allegation that the opposite party is not ready to claim such an enhanced rate of interest apart from the 108 monthly installments of Rs.425/- . But the bank contented in the version that the borrower have to repay the loan amount in monthly installments with 14.5%per annum as per the Clause V of the agreement, executed between both parties. If the interest is not paid, the same will be compounded with the principal balance testing in the accounts of such amount within the accounts of such balance and on satisfying balance, the complainant shall become able to pay the interest from time to time provided that the interest shall be provided to be leading to the RBI rate initiated by the bank to the borrower. Changing in the interest rate was published by the bank besides sending the intimation notice to the complainant and as on 9.7.2002 he is liable to pay Rs. 12,672/- In fact to the notice sent, reply was sent setting forth the correct statement of the account, the repayment was demanded as per the RBI direction in the housing loan as per the agreement . The complainant is able to pay the remaining amount as interest and only he was failed to get back his original documents mortgaged with the bank and they prayed for the dismissal of the complaint.
The complainant filed proof affidavit and marked Ext. A1 to A9 the bank produced and marked Ext. B1 to B4. The Forum below after hearing both parties and perused the documents marked both parties and taken a view that the complainant already fulfilled all the terms of the agreement by regularated the bank on monthly installments as agreed between the parties as per Ext. B3. After the payments of the entire amount including interest as per the agreement, the opposite party/ bank is bound to return the original documents of the complainant already mortgaged with them. The opposite party is only stick on enhance of the interest rate. But, they did not say anything about the reduction of the interest rate during the period of agreement of the loan. Nobody can fix a term as a liability for payment for enhanced interest rate. But at the same time if any reduction of the rate of interest then also the opposite party/ bank liable to reduce it from the fixed interest rate by fixing a time bearing installments of 108 months of Rs. 425/- each month is after a calculation of the number and the interest together. We are not seeing any difference in the monthly installments fixed by the opposite party/bank. That means the percentage of interest is not a simple interest. It is a compound interest rate. It is also an unfair trade practice we are not seeing any apparent error or illegality or irregularity in the order passed by the Forum below. It is legally sustainable. At the very same time, the complainant is not having a case that he sustained loss or damage due to the none returned of the original documents by the opposite party/ bank. There is no evidence adduced by the complainant for that point. In such a circumstance any of such a compensation is unwarranted. It is a legally settled position that the borrower is liable to pay only agreed interest. Nevertheless the depositor or the lonee have no right to claim any enhanced rate of interest other than agreed interest.
In the result, this appeal is allowed in part and modified the order passed by the Forum below. The original order is hereby set aside, directing the opposite party to return the original documents of the complainant, who mortgaged with them to the complainant within one week of the receipt of this judgment and also directed the opposite party to take Rs. 500/- as cost to the complainant failing which the aforesaid amount shall carry interest @ 12% from the date of order till realization to returned documents. The order of the Forum below is modified accordingly. Both parties are directed to suffer their own respective dhasti. The points of the appeal discussed and answered one by one accordingly.
M.K. ABDULLA SONA : MEMBER
JUSTICE K.R .UDAYABHANU : PRESIDENT
