BEFORE THE DISTRICT CONSUMER DISPUTES

REDRESSAL FORUM, JALANDHAR.

Complaint No.31 of 2014

Date of Instt. 27.01.2014

Date of Decision :12.10.2015

Rajesh Kumar Gupta son of Suraj Bhan Gupta, R/o B-28, Tanda Road, Jalandhar.

..........Complainant Versus

1. Citi Financial Consumer Finance India Limited, (Formerly known as Associates India Financial Services Limited) having its registered office at 3, Local Shopping Complex, Pushp Vihar, New Delhi-110062 through its Managing Director.

2. M/s Citi Financial Consumer Finance India Limited, C/o Mehan and Mehan Associates, 7-8 Opposite Bocki Industry, Madan Floor Mill Chowk, Near Ajit Press, Jalandhar City through its Manager.

3. M/s L & T Housing Finance Limited, having its registered office at Unit No.505 & 506, DLF Tower-B, District Centre Jasola, New Delhi-110025.

4. M/s Kotak Mahinda Bank Limited, having its registered office at 36-38A, Nariman Bhavan, 227, Nariman Point, Mumbai-400021.

.........Opposite parties.

Complaint Under Section 12 of the Consumer Protection Act.

Before: S. Jaspal Singh Bhatia (President)

Ms. Jyotsna Thatai (Member)

Sh.Parminder Sharma (Member)

Present: Sh.PMS Narang Adv., counsel for complainant.

Sh.Davinder Sharma Adv., counsel for OPs No.1 & 2.

Sh.Vikas Sood Adv., counsel for OP No.3.

Sh.Vikas Gupta Adv., counsel for OP No.4.

Order

J.S.Bhatia (President)

1. The complainant has filed the present complaint under section 12 of the Consumer Protection Act, against the opposite parties on the averments that complainant had availed a Home Loan/Loan against property amounting to Rs.25,06,897/- from opposite parties No.1 & 2 under loan account No.3549849 in the year 2004 and the same was repayable in 144 equal monthly installments of Rs.34,366/- commencing from 5.7.2004 to 5.6.2016. At the time of disbursement of the above said loan, opposite parties No.1 & 2 had assured the complainant that rate of interest applicable over the above loan is 13% per annum fixed on reducing balance with the stipulation that in case first twelve installment are paid on 1st presentation of cheque the rate of interest will be reduced from 13% to 12% per annum and a letter to this effect was issued by the opposite parties No.1 & 2 through their manager Mr.Parvinder Singh Oberoi on 29.6.2004. Complainant on the basis of above said assurance/representation and guarantees given by opposite parties No.1 & 2 through their manager in writing agreed to obtain the Home Loan/Loan against property from opposite parties No.1 & 2 and the same was disbursed under the loan account No.3549849 to complainant. After the disbursement of the loan complainant regularly made the payments of all the installments. After the disbursement of the above said loan opposite parties No.1 & 2 never supplied any agreement and statement of account to complainant despite his repeated request and reminders. On 27.9.2013 complainant gave a written request to opposite parties No.1 & 2 to provide him the copy of statement of account alongwith foreclosure amount as he wants to repay the entire outstanding dues in his loan account but opposite parties No.1 & 2 under one pretext or the other continued to linger the matter and orally intimated that the total outstanding as on 27.9.2013 is around Rs.18,00,000/- and the last EMI is payable by the end of year 2024. This was highly shocking for complainant as per the repayment schedule provided by the opposite parties No.1 &2 last EMI is payable on 5.6.2016 and further, as complainant had paid installments in time the agreed rate of interest is reduced from 13% to 12% after payment of 12 EMIs on its due date, then the last EMI was to be payable on 5.5.2015, but from the information supplied by opposite parties No.1 & 2 it appears opposite parties No.1 &2 have, in place of reducing the rate of interest as agreed have increased the rate of interest without any intimation and knowledge of the complainant which is totally against what was assured to complainant or agreed. The complainant under the belief that his loan will be repaid by May 2015 continued paying all the EMIs in time but the opposite parties No.1 & 2, intentionally and malafidely without intimating the complainant has increased the rate of interest in utter violation of the agreement or the written assurance given by the complainant. On such like averments, the complainant has prayed for directing the opposite parties that loan account be rescheduled as per terms and conditions and as per letter dated 29.6.2004 issued by the opposite parties. He has also claimed damages and litigation expenses.

2. Upon notice, opposite parties appeared and filed a written reply, inter-alia, pleading that at the time of execution of the loan agreement, the rate of interest of 13% floating per annum variable annually replaceable at the sole discretion of the opposite parties, was agreed by the complainant which would vary keeping in view the prevailing rate of interest from time to time. The rate of interest was increased from time to time and consequently, the amount of monthly installment to be paid by the complainant was kept same and tenure of monthly installment was increased from 144 to 209 monthly installments due to increase in rate of interest keeping in view the prevailing rate of interest from time to time. They also took objections regarding jurisdiction and limitation and denied other material averments of the complainant.

3. In support of his complaint, learned counsel for the complainant has tendered into evidence affidavits Ex.CA and Ex.CB alongwith copies of documents Ex.C1 to Ex.C9 and closed evidence.

4. During pendency of the complaint, it transpired that earlier the loan in question has been assigned to L & T Housing Finance Limited i.e opposite party 3 and thereafter it was again assigned to M/s Kotak Mohindra Bank Ltd i.e opposite party No.4 and as such they were also impleaded as party in the present complaint. Opposite party No.4 did not file any separate written reply and their counsel Sh.Vikas Gupta made a statement to the effect that written statement already filed by opposite parties No.1 & 2 may be read as written statement on behalf of opposite party No.4 and it does not want to file any separate written statement. He further suffered a statement on 12.5.2015 that evidence already tendered by opposite parties No.1 & 2 may be read as evidence on behalf of opposite party No.4.

5. On the other hand, learned counsel for the opposite parties No.1 & 2 has tendered affidavit Ex.OP1&2/A alongwith copies of documents Ex.OP1/1 to Ex.OP1/9 and closed evidence. Further learned counsel for OP No.3 has tendered document Ex.OP3/1 and closed evidence.

6. We have carefully gone through the record and also heard the learned counsels for the parties.

7. The complainant is praying for rescheduling of the loan as per terms and conditions and as per letter dated 29.6.2004 issued by the opposite parties. Ex.C1 is letter dated 29.6.2004. In this letter which was sent to the complainant by the opposite parties No.1 & 2 it is mentioned as under:-

"Sub:- Repricing of your loan bearing ref No.3549849.

Dear Sir,

We have sanctioned a loan of Rs.25,00,000/- (Rupees Twenty Five Lacs only) to your good self at 13% p.a for a tenure of 12 years.

We will reduce the rate of interest from 13% to 12% after your repayment of twelve installments in first presentation of cheques.

Please note that first EMI is due w.e.f 5.7.2004".

8. So as per this letter, the opposite parties No.1 & 2 undertook to reduce the rate of interest from 13% to 12% after repayment of 12 installments on first presentation of cheque. In this letter it is also mentioned that first EMI is due w.e.f 5.7.2004. Ex.C2 is statement issued by opposite parties No.1 & 2 company wherein booking date is mentioned as 16.4.2004 i.e before the date of letter dated 29.6.2004 Ex.C1. Ex.C7 is statement of account from 5.7.2004 to 23.9.2014 issued by the opposite parties No.1 & 2 and from the perusal of the same it is evident that installment amount is Rs.34366/- and tenure of monthly EMIs was 144. In this statement also the booking date is mentioned as 30.5.2004 which is also mentioned in statement of account Ex.C2. From the perusal of this statement of account it is evident that in the title of this statement of account installments paid are mentioned 121 and installment over due as zero and total outstanding amount as Rs.7,90,418/-. No doubt as per loan agreement, the opposite party was entitled to increase the rate of interest from time to time but vide letter dated 29.6.2004 Ex.C1, the opposite parties No.1 & 2 agreed and undertook to reduce the rate of interest at 12% after payment of first 12 regular installments on presentation of cheque. It is not case of the opposite parties the first 12 installments were not paid by the complainant in time or any cheque during the first 12 installments issued by the complainant was dishonoured. So as per undertaking contained in letter Ex.C1 opposite parties No.1 & 2 were bound to reduce of rate of interest from 13% to 12% after repayment of first 12 installments without any default. The rights of opposite parties No.3 & 4 who purchased the loan from opposite parties No.1 & 2 could not be better then the opposite parties No.1 & 2. The opposite parties No.3 & 4 are bound by the undertaking given by the opposite parties No.1 & 2 from whom the complainant has originally taken the loan in the year 2004. So in view of the undertaking contained in the above said letter dated 29.6.2004 Ex.C1, the complaint is accepted and opposite party No.4 who has purchased the loan in question is directed to reschedule the loan of the complainant applying 12% per annum interest w.e.f 5.7.2005 till date. However, opposite party No.4 shall not be entitled to charge any penal interest during the period, the complaint remained pending before this Forum. The complainant is also awarded Rs.10,000/- in lump sum on account of compensation and litigation expenses. Copies of the order be sent to the parties free of costs under rules. File be consigned to the record room.

Dated Parminder Sharma Jyotsna Thatai Jaspal Singh Bhatia

12.10.2015 Member Member President