Complaints filed on:19-07-2022
Disposed on: 30-12-2022
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, TUMAKURU
DATED THIS THE 30th DAY OF DECEMBER 2022
PRESENT
SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT
SRI.KUMARA.N, B.Sc. (Agri), LL.B., MBA., MEMBER
CC.No.112/2022
Smt. Lakshminarasamma W/o Ramaiah,
Aged about 65 years, Handralu Village,
Madhugiri Taluk, Tumkur District.
……….Complainant
(By Sri. M.S.Ganesh, Advocate)
V/s
1. The Manager, State Bank of India
Puruvara Branch, Madhugiri Taluk,
Tumkur District.
2. The Regional Manager,
State Bank of India H.O.,
St. Marks Road, Bangalore-01.
……….Opposite Party
(OP No.1 By Sri. Mohamed Afroze Ahamed, Advocate)
(OP No.2- served absent)
:ORDER:
BY SMT.G.T.VIJAYALAKSHMI, PRESIDENT
This complaint has been filed by the complainant against the OPs U/s 35 of the Consumer Protection Act 2019 with a prayer to direct the OPs to pay a sum of Rs.8,30,000/- with an interest of 12% PA and litigation expenses of Rs.5,000/- and also the amount which was deducted from the complainant Pension Account for this Loan as installments as the damages caused due to the derelict act of the OP and to grant such other reliefs as this Hon’ble Commission deems fit to grant.
2. The brief facts of the complaint are as under:-
The complainant intends to start goat rearing in her land; approached the OP and as per OP’s instruction, complainant applied under Mudra Scheme with application No.220134040130198 with project cost of Rs.6,00,000/- and the OP approved/sanctioned loan of Rs.3,00,000/- to the complainant. It is further submitted that after verification of the shed and food crop like Maize, Agase and other crops and seeing the goats purchased by the complainant from one Mr.Narasimharaju H.S. for Rs.3,15,000/-, the OP released 1st installment of Rs.1,50,000/- in favour of Mr.Narasimharaju. It is further submitted that when the said Farmer Mr.Narasimharaju demanded the complainant to give remaining amount of Rs.1,65,000/-, the complainant approached the OP and requested the OP to release the remaining loan amount, the OP dodged to release the remaining amount stating that auditing is going on and after that, they will release the loan, but thereafter also the OP did not release the remaining loan amount and in the meanwhile the said Farmer Mr.Narasimharaju took all the goats saying that he had suffered so much of loss due to sale of goats to the complainant.
2(a). The complainant further submitted that without releasing the remaining amount, the OP started to recover the amount from the complainant through her pension account and due to this act of the OP, the complainant suffered lot of mental agony and therefore the complainant issued legal notice through her counsel and the same was served on the OP on 18/06/2022. Thereafter the OP called the complainant to their bank and obtained one signature and till today the complainant do not know where she was signed and what purpose she was signed. It is further contended that after this incident, the OP released Rs.1,42,915/- and the same is reflected in the loan account, but credit was not shown either in the complainant’s account nor Goat seller account i.e. Narasimharaju’s Account and thereafter it reflected that amount was credited to Goat seller account, but the said amount was hold by the OP and even after legal notice also, the OP paid the amount nor reply for the legal notice. It is further submitted that the cause of action arose on loan sanction first amount released date: i.e. on 20.11.2021 and also on 16.06.2020 when the complainant has got issued legal notice and on subsequent dates. The OP till today not released the amount and deducting the loan amount form the complainant’s account. Hence, this complaint.
3. Notice issued to OP Nos. 1 & 2 duly served. Sri. Mohammed Afroze Ahamed, Adv., files power for OP No.1, but subsequently, the counsel for OP No.1 files retirement memo. The OP No.2 remained absent.
4. The complainant has filed her affidavit evidence and also marked the documents at Ex.C1 to C6.
5. We have heard the arguments of counsel for complainant.
6. On perusal of pleadings and documents produced by the complainant, the points that would arise for our consideration are:
1) Whether there is any deficiency in service on the part of OPs?
2) Whether complainant is entitled for reliefs sought for?
7. Our findings to the aforesaid points are as under:
Point No.1: Partly in the affirmative
Point No.2: As per the final order
:REASONS:
8. On perusal of the documents submitted by the complainant, it is seen that, the complainant has approached to the OP for the financial assistance to start Goat farming in her agricultural land to the OP and submitted the application with necessary documents. After inspection of the place and verification of documents, the OP/Bank sanctioned the loan of Rs.3,00,000/- on 18/11/2021 to the complainant and the complainant invested Rs.3,00,000/- for Goat shed and Food crops. Totally, the project cost is Rs.6,00,000/-. As per Ex.C4, the OP/Bank released the amount of Rs.1,50,000/- on 20/11/2021 to the complainant and same was paid to goat seller’s account. The Ex.C3 clearly states that the repayment date starts on 10/02/2022. But, after release of first installment, the bank has failed to release the remaining balance amount and therefore the complainant approached the OP/Bank on several times requesting to release the balance loan amount. Even though not released the remaining balance amount to the complainant, the OP/Bank started to collect the EMI from 23.02.2022. Thus, without releasing the full amount/balance amount of the loan, the collection of EMI for Rs.3,00,000/- amounts to unfair trade practice on the part of OP/Bank. For this act, the OP/Bank is liable to pay punitive damages to the complainant.
9. As per complainant averments, the goat seller taken back all the goats from the complainant due to non-payment of balance amount. Thus, the complainant suffered financial loss due to OP/Bank negligence act/hostile attitude. Therefore, the complainant on 16.06.2022 issued legal notice to the OP/Bank and requested to release the balance loan amount. After issuance of legal notice on 21.06.2022, the OP/Bank release of Rs.1,42,915/- in complainant’s loan account and it is reflected in goat seller’s account. But goat seller account withholds by the OP/Bank. Without any doubt, this act of the OP/Bank also amounts to deficiency in service on the part of OP/Bank. Hence, for unfair trade practice and deficiency in service, the OP/Bank is liable to pay compensation, punitive damages and litigation expenses to the complainant.
10. The complainant claimed Rs.3,30,000/- for shed construction, food crops for goats and other transportation of the goats and for labour charges and produced the documents relating to goat shed construction agreement and Goat shed photos. But not produced any receipts for payment of labour charges and purchase of food crops. Even though the complainant has not produced documents, but after inspection of the goat shed and the materials, the OP/bank sanctioned the loan and released the first installment. As per terms and conditions of the loan, the complainant obtained the insurance policy for goats by paying premium and veterinary doctor also certified. All these facts are admitted by the OP. Thus, the delay in releasing the remaining balance amount and without releasing the balance amount, collection of EMI of Rs.6,337/-, the complainant suffered financial loss. The OP being a responsible public Institution, failed to appear before this Commission to defend their case even after service of notice by this Commission on them. This act also amounts to deficiency in service.
11. Due to the unfair trade practice and deficiency of service on the part of OP, the complainant compelled to approach this Commission. Hence, the OP is liable to pay excess amount collected from the complainant as EMI, and compensation of Rs.1,50,000/- for mental agony and financial loss suffered by the complainant. Further, the OP is liable to pay Rs.50,000/- as punitive damages for their unfair trade practice towards complainant and litigation cost of Rs.10,000/-. Accordingly, we pass the following:-
:ORDER:
The complaint filed by complainant is allowed in part.
The OP is directed to pay excess amount collected from the complainant as EMI with interest @ 10.15% PA from the date of 1st EMI collection i.e. 23.02.2022 to till realization.
The OP is further directed to collect EMI without interest for the actually released i.e. Rs.1,50,000/-.
The OP is further directed to pay Rs.1,50,000/- as compensation, Rs.50,000/- as punitive damages and Rs.10,000/- as litigation expenses to the complainant.
Further, the OP is directed to comply the above order within 30 days from the date of receipt/knowledge of the order.
Supply free copy of this order to both parties
