IN THE DISTRICT CONSUMERS’ DISPUTES REDRESSAL FORUM AT MYSORE<br /> <br /> PRESENT: 1. Shri.A.T.Munnoli<br /> B.A., L.L.B (Spl.) - President <br /> <br /> 2. Smt.Y.V.Uma Shenoi<br /> M.Sc., B.Ed., - Member<br /> 3. Shri. Shivakumar.J.<br /> B.A., L.L.B., - Member<br /> <br /> CC 264/09 DATED 24.09.2009<br /> ORDER<br /> <br /> Complainant B.V.Sridhar,<br /> Sri, 1480, C & D Block,<br /> Paduvana Road, Kuvempunagar, Mysore-570023.<br /> <br /> (INPERSON)<br /> <br /> Vs. <br /> Opposite Party The Manager,<br /> LIC Housing Finance Ltd.,<br /> II Floor, Govardhan Complex,<br /> Mysore-570001.<br /> <br /> (By Sri. H.V.Ashwathanarayana Gupta, Advocate)<br /> <br /> Nature of complaint : Deficiency in service<br /> Date of filing of complaint : 22.07.2009<br /> Date of appearance of O.P. : 13.08.2009<br /> Date of order : 24.09.2009<br /> Duration of Proceeding : 1 MONTH 11 DAYS<br /> <br /> <br /> <br /> PRESIDENT <br /> <br /> <br /> <br /> MEMBER<br /> <br /> <br /> MEMBER<br /> <br /> <br /> Sri. A.T.Munnoli,<br /> President<br /> <br /> 1. The complainant has filed the complaint, seeking a direction to the opposite party to pay the LIC policy maturity amount of Rs.35,978/- with interest and compensation of Rs.25,000/- for mental agony and other financial loss and also to return the documents, on the ground of deficiency in service.<br /> <br /> 2. In the complaint, it is alleged that complainant had availed housing loan from the opposite party. Entire loan has been repaid by the complainant without a single default. Last installment was paid on 23.03.2009. At the time of sanctioning the loan, the opposite party had asked to pledge the LIC policies, which the complainant did. One of the policies was due for maturity on 28.05.2009. The maturity claim of the policy is Rs.35,973/-. Even though, entire loan has been repaid by the complainant, the policy amount has not been settled. Further, even after clearing the entire loan four months back, original documents such as title deed, khatha certificate etc., have not been returned by the opposite party. Complainant personally made several trips to the opposite party and moved from pillar to post. All the attempts bore no fruit. Complainant even met the Manager, who blamed the system. But, he promised to send the maturity claim amount with interest. But, nothing has happened since then. The non-receipt of claim amount and original documents has put the complainant lot of financial trouble. Complainant wanted to borrow money by pledging the documents to pay for his daughter in Australia to buy a house. It is the fiduciary duty of the opposite party to pay the maturity claim and return the documents immediately after clearing the loan. The opposite party charges interest by the day and penal interest if the loan is not repaid within the stipulated date. The complainant has been put into mental agony and untold misery apart from financial loss. On these grounds, it is prayed to allow the complaint.<br /> 3. The opposite party has filed version, admitting that the complainant had borrowed loan mortgaging his property. Certain allegations are denied. It is stated, the complainant must have gratitude with the opposite party for having taken the timely financial help. It is admitted that, the complainant had pledged one LIC policy with the opposite party. The opposite party has received the cheque for a sum of Rs.35,973/- from LIC on 06.08.2009. Since, the cheque was in favour of the opposite party that was sent for encashment and the opposite party has to issue another cheque in favour of the complainant. The opposite party is ready to issue cheque for the entire sum. So also, the opposite party is ready to return the documents of the complainant in the open Court. In fact, the documents were kept in safe custody at Zonal Office. The opposite party is ready to pay the interest for delayed period as per IRDA Rules. That was informed to the complainant. In spite of it, the complainant has approached the Forum, without waiting for a little. The opposite party is very punctual and honest in it’s duty. It is not at all liable to pay compensation of Rs.25,000/- or any amount to the complainant. Hence, it is prayed to dismiss the complaint.<br /> <br /> 4. To prove the facts alleged in the complaint, the complainant has filed his affidavit and has produced some documents. On the other hand, Assistant Executive of the opposite party has filed an affidavit, wherein the facts narrated in the version are stated. We have heard the arguments and perused the material on record.<br /> <br /> 5. Now the points arises for consideration are as under:-<br /> 1. Whether the complainant has proved deficiency in service on the part of the opposite party and that he is entitled to the reliefs sought?<br /> 2. What order?<br /> 6. Our findings are as under:-<br /> Point no.1 : Partly in the Affirmative.<br /> Point no.2 : As per the order.<br /> REASONS<br /> <br /> 7. Point no. 1:- As regard, borrowing of the loan by the complainant from the opposite party pledging LIC policy and repayment of entire loan, is admitted. Grievance of the complainant is non-retun of the documents and non-settlement of LIC policy amount soon after repayment of entire loan. <br /> <br /> 8. Admittedly, the last installment was payable on 23.03.2009 and that has been paid. Further, the LIC policy was due for maturity on 28.05.2009. That policy was pledged by the complainant with the opposite party for the loan. When admittedly in the month of March 2009 itself, the complainant has paid the entire loan, first of all, the opposite party immediately thereafter ought to have discharged the pledge and returned the LIC policy to the complainant, so, that the complainant could have surrendered same to the LIC and got the policy amount settled on the date of maturity. No reason is forth coming from the opposite party, as to why soon after payment of entire loan amount, the LIC policy which was pledged has not been returned to the complainant.<br /> <br /> 9. Date of maturity of the LIC policy was 28.05.2009. When the opposite party did not return the LIC policy to the complainant immediately after entire loan was paid by the complainant, then atleast the opposite party could have surrendered the policy to the LIC, so as to settle the claim amount in time. It is stated by the opposite party that it received the maturity amount on 06.08.2009. When the date of maturity policy was 28.05.2009, why there is such a delay in settling the policy amount, absolutely no reason is forth coming from the opposite party. It is not at all the case of the opposite party that well in time, the policy was surrendered to the LIC and the LIC did not settle the claim in time. Under the circumstances, only inference that has to be drawn is, there is delay on the part of the opposite party in surrendering the policy to the LIC.<br /> <br /> 10. It is stated in the version, that the opposite party received the cheque from LIC on 06.08.2009. The complainant has specifically stated that after repayment of entire loan, he approached the opposite party making several trips, but no result. That is not denied by the opposite party. It is contended by the opposite party that though it was ready to pay the LIC policy amount, the complainant approached the Forum without waiting for a little time. The complainant has filed the complaint before the Forum on 22.07.2009. As stated in the version, the opposite party received the cheque on 06.08.2009. Thus, it goes to show that after the complainant lodged the complaint, the opposite party woke up and got the LIC policy amount settled.<br /> <br /> 11. It is stated in the version and the affidavit by the opposite party that, it had received the cheque from LIC and the opposite party had to issue fresh cheque in favour of the complainant and this procedure will take atleast 20 to 30 days. Said contention of the opposite party, cannot be accepted in the present days of technology.<br /> <br /> 12. As regard, return of the original documents, it is stated by the opposite party that same was kept under safe custody at Zonal Office. Firstly, to substantiate it there is no cogent evidence and further more, when the opposite party was aware of the date of last installment payable by the complainant, it was the duty to get itself prepared to return the documents well in time. Further, in the month of March 2009 itself, the complainant has repaid the entire loan, but till to today, the opposite party has not returned the original documents to the complainant. It is mentioned in the version, that the opposite party is ready to return the documents in the open Court. Why the opposite party wanted to return the documents in the open Court is not known. It was bounden duty of the opposite party to return the documents soon after repayment of entire loan.<br /> <br /> 13. It is stated by the complainant that he wanted the original documents to raise loan by pledging the same to pay to her daughter in Australia to buy a house. There is no reason to disbelieve the said claim of the complainant. Also, as noted above, the complainant alleges that he made several trips to the office of the opposite party and moved from pillar to post, but the attempts bore no fruit. Under the circumstances, claim of the complainant towards compensation has to be considered. Further, the opposite party itself admitted ands stated that it is ready to pay interest for the delayed payment as per the IRDA Rules. But, what is the rate of interest is not stated. It is submitted for the complainant that even in case of one day delay in repayment of the loan by the borrower within the stipulated day, the opposite party charges interest and penal interest. However, what was the interest that the opposite party charged on the housing loan of the complainant, is not forth coming. Taking into consideration of the entire facts, we feel it just to award compensation of Rs.10,000/- to the complainant towards mental agony as well as other inconvenience caused. Awarding of interest at the rate of 12% p.a. is just and reasonable. <br /> <br /> 14. Accordingly we answer the point partly in affirmative.<br /> <br /> 15. Point No. 2:- Considering the discussion made above and conclusion arrived at, we pass the following order:- <br /> <br /> ORDER<br /> <br /> 1. The Complaint is partly allowed.<br /> 2. The opposite party is hereby directed to pay a sum of Rs.35,973/- to the complainant with interest at the rate of 12% p.a. from 28.05.2009, till realization of the entire amount.<br /> 3. Further, the opposite party is hereby directed to pay a sum of Rs.10,000/- to the complainant as compensation towards mental agony and other inconvenience caused within a month from the date of this order. On failure to pay the said amount, the opposite party shall pay interest at the rate of 12% p.a. from the date of this order, till realization.<br /> 4. So also, the opposite party shall pay a sum of Rs.1,000/- to the complainant towards cost of this proceedings.<br /> 5. Further, the opposite party is hereby directed to return all the original documents of the complainant taken at the time of advancing loan within a week from the date of this order.<br /> 6. Give a copy of this order to each party according to Rules.<br /> <br /> (Dictated to the Stenographer, transcribed by her, transcript revised by us and then pronounced in the open Forum on this the day 24th September 2009)<br /> <br /> <br /> <br /> (A.T.Munnoli) <br /> President <br /> <br /> <br /> <br /> (Y.V.Uma Shenoi)<br /> Member<br /> <br /> <br /> <br /> (Shivakumar.J.)<br /> Member<br /> <br />