BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL FORUM, JALANDHAR.

Complaint No.192 of 2016

Date of Instt. 29.04.2016

Date of Decision: 10.05.2017

Parveen Kumar Jain son of Shri Om Parkash Jain, resident of House No.NK-327, Jatpura, Jalandhar.

..........Complainant

Versus

M/s Capital First Ltd. SCO 18 Puda Complex, Ladowali Road, Jalandhar through its Branch Manager.

.........Opposite party

Complaint Under the Consumer Protection Act.

Before: Sh. Karnail Singh, (President),

Sh. Parminder Sharma (Member)

Present: Sh. Parmod Kashyap, Adv Counsel for complainant.

Opposite Party exparte.

Order

Karnail Singh (President)

1. The instant complaint presented by the complainant, wherein alleged that he is consumer of OP Capital First Limited as he has obtained a loan against a mortgage of his property and complainant is regularly paying installments. Copy of schedule payment is attached. At the time of applying and sanctioning of loan, the complainant had specifically made it clear his requirement for loan and all the terms and conditions were settled between the parties. The complainant had also especially expressed to have fixed rate of interest and it was told by the OP that the complainant would be charged for fixed rate of interest on the loan amount through out the period of loan and the official of OP had also assured the complainant that the complainant would be charged fixed rate of interest which would be prevailing at the time of sanctioning of loan, the complainant also sign certain stamp papers, documents and blank form of the loan file of the OP and it was told to the complainant that fixed rate of interest is 14% per annum and he would be charged 14% interest per annum throughout the period of loan and in this way the complainant was asked to pay the loan amount of Rs.1,099,000/- in 120 equal installment of Rs.17064/-.

2. After getting a loan the complainant started paying monthly installment to the OP and after about 1 year the OP had been charging the interest at the rate of 14% as settled between the parties. The complainant kept on paying equal monthly installment of Rs.17064/- but recently it was transpired, the OP have enhanced the installment from 120 months to 156 months by enhancing the rate of interest from 14% to 16.75 per annum. This shifting of loan from fixed rate of interest to floating rate of interest without the consent of the complainant is in arbitrary manner. The complainant was not even informed at the time of changing the rate of interest and even if the complainant has been charged floating rate of interest then it must be floating meaning thereby whenever there was decreased rate of interest by all other bank as per the instruction of RBI. It should have been decreased and whenever there was enhanced rate of interest then it should have been enhanced. But in the present case as per repayment schedule rate of interest has been jumped to 16.75% per annum all of sudden at once in the mid of 2012 at the back of the complainant without serving any notice to the complainant or obtaining his consent which amounts to unfair trade practice on the part of the OP and even there is deficiency in service on the part of the OP and as such the instant complaint filed with the prayer that the complaint of the complainant may be accepted and OP may be directed to charge fixed rate of interest @ 14% per annum throughout the loan period of the complainant and further to pay compensation of Rs.2,50,000/- on account of mental agony and harassment and also pay litigation expenses of Rs.10,000/-.

3. Notice of the complaint was given to the opposite party but despite service OP did not come present and ultimately he was proceeded against exparte.

4. In order to prove his exparte claim, complainant himself tendered into evidence his duly sworn affidavit Ex.CA alongwith documents Ex.C-1 to Ex.C-3 and then closed the evidence.

5. We have heard the learned counsel for the complainant and also gone through the case file very minutely.

6. In nutshell, the case of the complainant is simple that he has obtained a loan from OP and as per settlement/agreement with the OP, it was decided that the OP will be charged the interest on the aforesaid loan @ 14% per annum throughout the loan period and there will be no enhancement of the interest and accordingly the total loan amount of Rs.10,99,000/- was settled to be paid in 120 monthly equal installment of Rs.17,064/- per month but all of sudden without giving any notice to the complainant, the OP has enhanced the rate of interest from 14% to 16.75% per annum and also enhanced the installment from 120 month to 156 month, which is unfair trade practice and deficiency in service.

7. No doubt, in order to establish the allegations made in the complaint, the complainant Parveen Kumar himself tendered his affidavit Ex.CA, whereby reiterated the entire facts as elaborated in the complaint. Apart from that the complainant has proved on file copy of Repayment Schedule showing the enhanced rate of interest and monthly payment from 120 to 156 month, which is Ex.C-1 and in order to prove that initially it was settled between the parties, the total payment will be paid in 120 monthly installments and the said document is Ex.C-3 and making reliance upon these document the counsel for the complainant make a request that the OP illegally enhanced the rate of interest and monthly installments from 120 to 156 months and further sought direction to the OP to charge fixed rate of interest @ 14% throughout the loan period and also pay compensation and litigation expenses.

8. We have gone through the complaint and find that the complainant alleged that he was told by the OP that fixed rate of interest is 14% per annum throughout the period of loan but in order to establish that the rate of interest is settled 14% per annum throughout the period of loan, complainant has not brought on the file any agreement or other document except the document Ex.C3, wherein no doubt the tenor for making entire loan is mentioned by way of monthly installment i.e. total 120 months at the rate of monthly payment Rs.17,064/- and thereafter in the recent document Repayment Schedule Ex.C1 shows the rate of interest 16.75% and payment is to be made by 156 monthly installment and admittedly the OP has enhanced the rate of interest i.e. 14% per annum to 16.75 %.

9. We find there is an other document which is not exhibited by the complainant for the best known reason but the photostat copy of the said document is available on the file which is very material and in that document the heading is Sanction Letter means the loan was sanctioned through this letter and rate of interest is mentioned 14% and term of loan 120 months at the monthly rate of 17,064/- but the term and condition has been very well mentioned in this loan sanctioned letter that the rate of interest as settled about would be valid for a period of 30 days and further stated that the rate of interest is floating, so, it means that the rate of interest is not fixed as alleged by the complainant in the complaint and for the best known reason the said loan sanctioned letter is not exhibited by the complainant by concealing the real and actual fact from the Forum and furthermore it is very well mentioned in the document Ex.C3, the agreement No.HE275873 dated 30.07.2010 but the copy of the said document does not bring on the file by the complainant for the best known reason because all the terms and conditions are settled and incorporated in that agreement and just to conceal that term and condition the said agreement is not brought on the file. So, under these circumstances, we find that there is no authenticated evidence came on the file that the rate of interest is fixed 14% throughout the loan period rather as per loan sanctioned letter the said rate of interest is floating one and therefore we do not find any substances in the argument put forth by counsel for the complainant. Therefore the complaint is dismissed. Complaint could not be decided within stipulated time frame due to rush of work.

10. Copies of the order be supplied to the parties free of cost, as per Rules. File be indexed and consigned to the record room.

Dated Parminder Sharma Karnail Singh

10.05.2017 Member President