BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II, U.T. CHANDIGARH

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Complt. Case No :1235 of 2009

Date of Institution:   31.08.2009

Date of Decision  :   28.05.2010

Ram Niwas s/o Sh.Satnarain, R/o H.No.1726, Phase-5, SAS Nagar, Mohali.

 ……Complainant

V E R S U S

1]       LIC Housing Finance Limited, SCO No.2445-46, Sector 22-C, Chandigarh, through its Branch Manager.

2]       LIC Housing Finance Limited, Bombay Life Building, 2^nd floor, 45/47, Veer Nariman Road, Mumbai 400 001 through its Managing Director.

 .…..Opposite Parties

CORAM:          SH.LAKSHMAN SHARMA                         PRESIDENT

                    MRS.MADHU MUTNEJA                        MEMBER

PRESENT:      Sh.Gagan Aggarwal, Adv. for the complainant.

Sh.O.P. Narang, Adv. for OPs.

PER MADHU MUTNEJA, MEMBER

                    The instant case is a complaint filed by Sh.Ram Niwas, complainant under Section 12 of the Consumer Protection Act demanding that the OPs be directed to release Rs.1,70,000/-, which is the outstanding amount of loan sanctioned to him.

                    The facts of the case are as under:-

1]                 The complainant had applied for a loan from the OPs under the scheme known as Griha Prakash.  A loan of Rs.5,70,000/- at interest of 10.5% per annum had been sanctioned to him.  Copies of the letter of approval of HOUSING LOAN is at Ann.C-1, the Loan Agreement is at Ann.C-2, and Repayment Detail is at Ann.C-3.  The repayment schedule was fixed for a period of 20 years and the complainant was required to make payment of EMI of Rs.5689/- per month for a period of 20 years.

                    However, at the time of disbursement of loan, the OPs gave only Rs.4.00 lacs to the complainant.  Despite various representations and legal notices by the complainant to the OPs, they have not yet released the remaining amount of Rs.1,70,000/-.  Infact they have raised objection that this amount cannot be paid to him.  The complainant has thus approached this Forum seeking relief against the OPs for release of this remaining amount, which was needed for construction of the house.  As this amount was not paid to him by the OP,he had to take another loan of Rs.1 lac from ICICI.

2]                 The OPs in their reply have admitted that they have sanctioned a loan of Rs.5,70,000/- to the complainant.  They have further stated that he had also taken another loan of Rs.1,50,000/- from his employer for the same property and the documents/title deed with regard to the said property have been handed over to the employer and not to the OPs, who actually had the first charge on the property. 

                    The OPs have submitted that the complainant had bought a piece of land on 8.1.2008 for Rs.5.50 lacs as per Sale Deed at Ann.R-4.  Since Rs.4.00 lacs disbursed by them was more than 100% funding of the amount required for the purchase, by way of loan; and the complainant had also taken Rs.1,50,000/- as loan from his employer, no further amount of loan could be disbursed to him.  They have stated that financing could be done only upto 85% of the documented value of the property.  They have also alleged that the complainant has not mentioned the name of LIC HFL in the Sale Deed.  Since these acts of the complainant are not to the satisfaction of the OPs, they are not willing to remit the balance loan amount of Rs.1,70,000/- to him.  Contending that there is no deficiency in service on their part, they have prayed for dismissal of the complaint.

3]                 We have heard the learned counsels for both the parties and perused the evidence led by both parties in support of their contentions.

4]                 The complainant has been sanctioned a HOUSING LOAN from the OPs.  The word ‘HOUSING’ would in the normal course means land and building thereon.  The contention of the ld.Counsel for the OPs that they have disbursed Rs.4.00 lacs against the cost of the land of Rs.5.50 lacs cannot be maintained since they have not taken into consideration the cost of the construction of the house thereon.  The complainant has also not given details of the amount spent by him on the construction of the plot though he had mentioned in his complaint that the house has been constructed.  Infact to complete the house, he had to take a loan from ICICI Bank also as the OPs refused to disburse the remaining sanctioned loan amount of Rs.1,70,000/-.

5]                 From the above situation, we feel that the OPs cannot refuse to disburse the balance amount of loan to the complainant especially in view of the fact that he is paying regular monthly installments of Rs.5689/- against the sanctioned loan amount of Rs.5,70,000/- to the OPs.  He has also never defaulted in payment of any of the installments. 

6]                 In view of the above pleadings, this complaint is allowed.  The OPs are directed to disburse the balance sanctioned loan amount of Rs.1,70,000/- to the complainant immediately.  OPs are also directed to pay Rs.10,000/- as compensation to the complainant for deficiency in service as well as Rs.3000/- for cost of litigation.

7]                This order be complied with within 45 days from the date of receipt of its certified copy, failing which the OP shall pay interest @12% per annum on the unpaid loan amount of Rs.1,70,000/- and compensation from the date of receipt of certified copy of this order till the date of realization besides the cost of litigation.  

8]                 Certified copies of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

28.05.2010                                                                      Sd/-

(LAKSHMAN SHARMA)

PRESIDENT

                                                                                  Sd/-

(MADHU MUTNEJA)

MEMBER

‘Om’