District Consumer Disputes Redressal Commission ,Faridabad.
Consumer Complaint No. 373/2022.
Date of Institution:13.09.2022.
Date of Order: 18.4.2023.
Ramji Gupta /o House No. 2750, Gali No.2, Jawahar colony, NIT, Faridabad,
……..Complainant……
VERSUS
1. M/S DCB Bank Limited, Registered office:- 6th floor, Peninsula Business Park, Tower a, Senapathi Bapat Marg, Lower Parel, Mumbai – 400 013 through its Chairman/Managing Director.
2. The Manager, M/s. DCB Bank Limited, 7/56, a set House, 3rd floor, Desh Bandhu Gupta road, Karol Bagh, New Delhi – 110 005.
……..…Opposite party
Complaint under section-12 of Consumer Protection Act, 1986
Now amended Section 34 of Consumer protection Act 2019.
BEFORE: Amit Arora……………..President
Mukesh Sharma…………Member.
Indira Bhadana………….Member.
PRESENT: Sh. Atul Khatri , counsel for the complainant.
Sh. Nishant Ahmed, counsel for opposite parties Nos.1 & 2.
ORDER:
The facts in brief of the complaint are that complainant has availed a consumer loan of Rs. 4,15,000/- from Citi Financial Consumer Finance India Limited bearing loan account No. 12808482 in June 2007 which was enhanced to Rs.11,00,000/- in Dec. 2008 under the repayment tenure of 15 years i.e till Feb, 2022 against a security of Immovable Property bearing House No E-96 & 97. Old Jawahar colony, NIT, Faridabad Later on, respondent No. 1 and 2 had acquired CitiFinancial Consumer Finance India Limited Bank and in pursuant of the same, the representative of respondent's bank approached the complainant and got his signature over several documents due to merger of Banks and restructure the said loan on 05.10.2011 for a sum of Rs 10,52.150.08 under customer loan account No HCFEDEL00025706 upon same repayment schedule. However, despite asking to provide signed documents, respondents did not provide single document to the complainant. The complainant had utilized the loan amount and started paying the instalment's as per the schedule and regular in making the payment to Bank till 2020, but abruptly, there was outbreak of covid-19 in the world which impact the global business down even the Government of India had declared its pandemic and declared lockdown in the entire country and in the wake of the pandemic issue and during the period of nationwide lockdown, it was likely that all businesses across India would be severely impacted and in such a situation it would neither be prudent for the complainant to continue payment of instalments without any corresponding business. Even the widespread outbreak of COVID-19 had disrupted the functioning of most business globally, and should be construed as a force majeure event for the purpose of most contracts both in India and abroad. Thus, complainant apprised the respondent about his inability to pay the due instalments and requested to grant moratorium as per the instructions and guidelines formulated by the Government of India in consultation with the Reserve Bank of India. After the upliftment of restriction, Complainant started regaining its business income and started paying the instalments, However it was realized by the complainant that that even after paying the instalments, amount of the said loan was not reduced rather illegal interest, excessive late payment charges, collection charges etc were being charged thereon. Therefore, Complainant had issued various letters to the respondent No.1 and 2 as well as Banking Ombudsman with a request to all of them to remove all illegal charges and to reduce interest etc. but no avail. The complainant further came to know that respondent No.1 and 2 had arbitrarily extended the timing of repayment from Feb, 2022 to April 2023 and now till 05.01.2024 which was being done with its malafide intention to charges illegal interest without the complainant consent, knowledge even the interest charged by the respondent was very high and excessive as per the agreed terms. Complainant has paid complete instalments till April 2022 and still an amount of Rs. 4,12,115.18/- was lying outstanding in the said loan account. Till date complainant had paid approx. Rs. 29,00,000/- all-inclusive as repayment of this loan account, still an amount of Rs. 4.12.115.18/- was lying outstanding in the said loan account. Complainant has issued various letters, notices to the respondents thereby requested them to reduce the interest, and remove the unnecessary charges levied by them on said loan account mentioned above, but no heed has been paid by the respondent to the request made by the complainant. The aforesaid act of respondents amounts to deficiency of service and hence the complaint. The complainant has prayed for directions to the respondents to:
a) to waive off the illegal charges charged by them on account of illegal interest, excessive late payment charges, collection charges etc which Comes to Rs.4,00,000/- and also be directed to make the schedule of repayment till April, 2023 or to provide one time settlement charges to the complainant for the purpose of repayment of loan account.
b) pay Rs.1,00,000/- as compensation for causing mental agony and harassment .
c) Any other of further relief which this Hon'ble Commission may deem fit may also be granted in f avour of the complainants and against the respondents.
2. Respondents put in appearance through counsel and filed written statement wherein Respondents refuted claim of the complainant and submitted that the present Reply had been filed on behalf of the DCB Bank Limited Opposite Party No.1. The Opposite Party No.2 was working in a professional capacity on behalf of the Opposite Party No.1. therefore the present Written Statement was being filed on behalf of the DCB Bank Limited (herein after referred to as Opposite Party Bank), which may be treated as a reply on behalf of the opposite party no 2 as well. Mr. Ramji Gupta approached Citi Financial Consumer Finance India Limited for availing finance facilities for the purpose of Home Equity Loan. Believing the representations made by the Complainant to be true and on the basis of his financial credibility, the Citi Financial Bank had sanctioned an amount of Rs. 11,00,000/- (Rupees Eleven Lacs only) vide Sanction Letter dated 27.07.2009 and allowed the same subject to the terms of Home Equity Agreement, under Loan Account No. HCFEDEL00025706. The subject Home Equity Loan was inscribed to be repaid in 156 Equated Monthly Installments (EMIS) of Rs. 16.794/- each with incidence of variable rate of Interest @16% P.A. The Complainant had created an Equitable Mortgage over House No.- 2750, Jawahar Colony, Faridabad- 121001 (hereinafter referred to as Subject Property/Secured Asset) in favour of the creditor. The Complainant duly signed all the loan document which were being relied upon to counter the averments in the complaint at the instance of the Complainant. Citi Financial Consumer Finance India Limited duly followed the prevalent guidelines for approval and disbursement of the Home Loan facility and Loan Amount was disbursed to the Complainant in accordance with the term's conditions of the Home Equity Agreement. An amount of Rs. 1018992.40/- was disbursed vide cheque dated 21/09/2011 in the favour of the Complainant. There after the answering Opposite Party Bank acquired various Home Loans from the Citi Financial Consumer Finance India Limited with underlying securities in assignment including the subject Home Loan Account of the Complainant. As per the Sanction Letter dated 27.01.2009 and the Home Equity Loan Agreement the Loan Amount was to be repaid at a variable rate of interest a 16% per annum. It was stated in the Sanction Letter that "The company shall review and, if considered necessary, revise the rate of interest at any time and from time to time as per its policy, market conditions and/or applicable laws and regulations, if any during tenor of the loan. Except to the extent the rate of interest was revised by the Company as above, the terms and conditions stated herein and in the Loan Agreement shall be final and conclusive and binding. Where the customer opts for any scheme(s) offer(s), the rate of interest shall be as per the terms and conditions applicable to such scheme(s) offer(s) and as may be contained in the Addendum to the Agreement". The Complainant under the subject loan account had failed to adhere to financial discipline and committed willful defaults in service of the loan account, rendering the subject loan account being an irregular account showing total outstanding amount of Rs 3,74,566.08/- as on 09/09.2022. Such events of default confer rights of enforcement against the person and properties of the obligants herein, under terms of the facility agreement and answering Opposite Party Bank reserves its right in this regard against the Complainant. Respondents denied rest of the allegations leveled in the complaint and prayed for dismissal of the complaint.
3. The parties led evidence in support of their respective versions.
4. We have heard learned counsel for the parties and have gone through the record on the file.
5. In this case the complaint was filed by the complainant against opposite party–DCB Bank & anr. with the prayer to: a) to waive off the illegal charges charged by them on account of illegal interest, excessive late payment charges, collection charges etc which Comes to Rs.4,00,000/- and also be directed to make the schedule of repayment till April, 2023 or to provide one time settlement charges to the complainant for the purpose of repayment of loan account. b) pay Rs.1,00,000/- as compensation for causing mental agony and harassment .
To establish his case the complainant has led in his evidence, Ex.CW1/A – affidavit, Ex.C-1 – legal notice, Ex.C2 & 3 – postal receipts, Ex.C4 –
Account repayment statement,, Ex.C-5 – letter dated 23.07.2007, Ex.C-7 – loan account detail as on 31.01.2016, Ex,C-7 – Loan account details as on 25.02.2022 , Ex.C-8 – letter dated 18.07.2016 regarding reduce the ROI,, ex.C-9 – letter dated 01.02.2016, Ex.C-10 letter dated 11.10.2019,
On the other hand counsel for the opposite parties strongly agitated and opposed. As per the evidence of the opposite parties affidavit of Shri Pramod Chand, authorized Officer/authorized representative of the DCB Bank Limited, having its registered office at 7/56, 3rd floor, Deshbadhu Gupta road, Karol Bagh, New Delhi.
6. In this case, the complaint was filed by the complainant with prayer to waive off the illegal charges charged by them on account of illegal interest, excessive late payment charges, collection charges etc. which Comes to
Rs.4,00,000/- and also be directed to make the schedule of repayment till April, 2023 or to provide one time settlement charges to the complainant for the purpose of repayment of loan account.
7. During the course of augments, counsel for the opposite parties has taken an adjournment to settle the amount with the complainant.
8. During the course of arguments, Shri Ramji Gupta has made a statement that “I am ready to pay Rs.2,00,000/- as full and final settlement towards the outstanding loan amount to the Opposite parties i.e.DCB.
9. After going through the evidence led by the parties, no doubt, there is a deficiency in service on the part of the opposite parties because opposite parties have charged the amount from the complainant during the COVID 19 period and also charges legal charges from the complainant from the different heads. Hence, the Commission is of the opinion that as we all now in the year 2020 to 2021 the diseases Covid-19 was spreading and the government of India have declared the Lockdown in the Country and everything was getting closed.
The Hon’ble Supreme Court of India took Suo Motu Cognizance in SMWP 3 of 2020 of the situation arising out of the challenge faced by the country on account of Covid-19.
The order dated 23.03.2020 is restored and in continuation of the subsequent orders dated 08.03.2021, 27.04.2021 and 23.09.2021, it is directed that the period from 15.03.2020 till 28.02.2022 shall stand excluded for the purposes of limitation as may be prescribed under any general or special laws in respect of all judicial or quasi judicial proceedings.
10. After going through the evidence led by the parties as well as the
statement of the complainant, the Commission is of the opinion that the complaint is disposed off with the direction that opposite parties will charge only Rs.2,00,000/- from the complainant and issue the NOC in favour of the complainant after getting the money. The complainant is also directed to pay the amount of Rs.2,00,000/- in one short within 30 days from the date of this order. There are no order as to costs. Copy of this order be sent to the parties concerned free of costs. File be consigned to the record room.
Announced on: 18.04.2023 (Amit Arora)
President
District Consumer Disputes
Redressal Commission, Faridabad.
(Mukesh Sharma)
Member
District Consumer Disputes
Redressal Commission, Faridabad.
(Indira Bhadana)
Member
District Consumer Disputes
Redressal Commission, Faridabad.
