Date of Filing:       20.04.2017

                                                                                                                       Date of Disposal:  08.02.2019

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM

THIRUVALLUR

THIRU.  J. JUSTIN DAVID, M.A., M.L.                                         .…. PRESIDENT

TMT.      K. PRAMEELA, M.Com.                                                  ….. MEMBER-I

THIRU.  D.BABU VARADHARAJAN, B.Sc., B.L.                          ..… MEMBER-2

CC.No.22/2017

FRIDAY THE 8^th  DAY OF FEBRUARY 2019

Mr.Rupesh Kumar,

Block 4 hut 5 B Block,

Meenakshi Siva Apartment,

Ground Floor, Devaraja Nagar,

Saligramam, Chennai - 600 093.                                       ………. Complainant.

                                             //Vs//

1.The Managing Director,

   M/s.Visage Holdings and Finance (P) Ltd.,

   50, 2^nd Floor, 100 Ft Road,

   Above Relaince Foot Print,

   HAL II Stage (Defense Colony),

   Indira Nagar, Bangalore -560 038.

2.The Manager,

    Sales and Monitoring,

    M/s.Visage Holdings and Finance (P) Ltd.,

    No.5/18, F-2A, Mugappair Road,

   Mannurpet, Chennai -600 050.                                  …….. Opposite parties

This complaint is coming upon before us finally on 31.01.2019 in the presence of Mr.K.Jagannathan, Advocate Counsel for the complainant and M/s.T.Muthamilselvi, Advocate, Counsel for the opposite parties and having perused the documents evidences and written argument of the both sides, this forum delivered the following.

ORDER

PRONOUNCED BY THIRU.J.JUSTIN DAVID, PRESIDENT.

This complaint is filed by the complainant Under Section 12 of Consumer Protection Act 1986 against the opposite parties for seeking direction to pay a sum of Rs.1,00,000/- towards compensation for causing mental agony and torture and to pay the cost of this litigation.

2.Brief Averments in the Complaint filed by Complainants is as follows:-

The complainant was running a industry of manufacturing of sheet metals used for the car manufacturers and for which the complainant wanted to buy a machinery worth Rs.6,00,000/- and placed an order with AERO STAR company for the same AERO STAR company informed to the complainant that they are ready to supply machinery, the complainant had informed the  AERO STAR company that the complainant is arranging for a loan through his bankers and asked the supplier to wait for some time and also the Aero Star company had introduced the 2^nd opposite party who inturn spoke to the 1^st opposite party and agreed to finance for the same. Thereafter the 1^st opposite party has come to the complainant’s office and informed to the complainant that the loan will be approved within a week time and asked the complainant to hand over pan card, Rental Agreement of the factory, EB Card Xerox, Partnership Deed and Current Account Bank Statement for six months and the complainant handed over the same to the 2^nd opposite party.  In the meantime the interest rate is far higher than the Banking interest rates and informed the 2^nd opposite party that he cannot serve that interest rate and asked the 2^nd opposite party to return the documents and the complainant does not want to avail the loan.  The complainant made several visits to the office of the 2^nd opposite party to collect the documents and 2^nd opposite party informed that the document will be couriered from the 1^st opposite party to his address but more than one and half years have passed by and both the parties never returned the documents back to the complainant.  In the month of December 2016 the complainant had approached IDFC Bank for a personal loan for the medical expenses of his father and to his utter shock and dismay he was refused the same stating that he is declared defaulter as per CIBIL report.  The complainant had paid the due charges to CIBIL and taken a report wherein he had found that there was a loan outstanding of Rs.1,85,170/- due to the 1^st opposite party and as per the report it had appeared loan amount due to Visagehfpl, Business loan-Priority Sector –Small Business, 0007LTL1002013-Joint Out of Sanctioned Loan Amount of Rs.4,00,000/-.  The 1^st opposite party sent him a no objection letter stating that they apologise for the most unfortunate situation and the loan sanctioned in the month of June 2015 was not distributed and they will rectify the mistake with CIBIL shortly. The complainant had issued a legal notice on 28.12.2016 to the opposite parties for their illegal usage of the complainant’s documents and the opposite parties had replied that they had already initiated action to remove the complainant’s name from CIBIL.  The opposite parties had rendered deficiency in service, they have left with no efficacious alternative remedy other than filing the present complaint.

3.The contention of written version of the opposite parties is brief as follows:-

M/s. Visage Holdings& Finance (P) Ltd., is a Company registered under the companies Act-1956 having its Registered office inter alia, at No.50,2^nd Floor, 100 Feet Road, Hal 2^nd stage, Indira Nagar, Bangalore and it is a Non Banking Financial Company (NBFC) registered with Reserve Bank of India, engaged in business of providing financial assistance to valued customers.  There is no such designation as Managing Director in the company.  The complainant and his Business Partner Mr. Raja Kumar had applied the loan for the amount of Rs.4,00,000/- for purchase of a machine. The 1^st opposite party represented by its CEO had never visited the complainant.  All interaction of the complainant was only through the 2^nd opposite party and staff.  Actually after sanctioning of the loan by the opposite parties and when the loan was about to be disbursed the complainant had given instruction to stop the loan process without any valid reason.  Not only that the complainant had also threatened the opposite parties that if the loan was disbursed he will never pay the EMI as per terms loan agreement.  So the complainant had no other option other than to stop the disbursal of the loan at the very last moment.  The complainant has admitted that he has not signed any papers with the opposite parties.  Hence it is not clear what documents he wanted to collect back from opposite parties.  It is true, due to inadvertent technical issues the names of the complainant had been updated in CIBIL record.  But it is pertinent here to point out that the complainant had applied for loan only under the name of the entity Global Tooling Technologies.  Even according to the complainant, the entity is closed down as of now and he has applied for a personal loan in his individual capacity.  Even this error had occurred only because of the fact that complainant had instructed to stop the disbursal of the loan at the very last minute.  Even then, when the complainant brought it to the notice to the opposite parties, immediately they tendered an apology and issued no objection certificate to the complainant on 22.12.2016.  The above mistake committed by the opposite party is not deliberate.  If the mistake had been deliberate the opposite parties should have also initiated legal action for recovery against the complaint.  Non-initiation of any such legal action proves that this was only a technical error and therefore the complaint is vexatious by nature and needs to be dismissed in limine.

4. In order to prove the case, on the side of the complainant, the proof affidavit submitted as his evidence and Ex.A1 to Ex.A4 were marked.  While so, on the side of the opposite parties, the proof affidavit submitted as their evidence but no document. Further written argument filed and oral argument adduced on both sides.

5. At this juncture, the point for consideration before this Forum is:-

(1) Whether there is any deficiency in service on the part of the opposite parties as alleged in the complaint? 

 (2) Whether the complainant is entitled for compensation and cost of proceedings due to the deficiency of service on the part o f the opposite parties?

 (3) To what other reliefs, the complainant is entitled to?

6. Point No.1 to 2:-

The case of the complainant is that the complainant has not obtained any loan from the opposite parties and the same was accepted by the opposite parties and when the complainant approached another Bank namely IDFC Bank for a personal loan for the medical expenses of his father the above said Bank was refused to sanction the loan stating that the complainant is declared defaulter as per CIBIL report which caused much mental agony and hardships due to the deficiency in service on the part of the opposite parties.  If it is so, this Forum has to decide as to whether the complainant has come forward to prove the allegations by means of proper and cogent evidence which is prime duty of the complainant.

7. Out the outset, on careful perusal of the evidence adduced by the complainant’s proof affidavit, it is seen that the complainant approached the opposite parties for sanction of loan amount of Rs.6,00,000/- to buy a machine and inturn the opposite parties informed  the complainant to hand over pan card, current Account Bank Statement, Rental agreement of the factor and partnership deed. Thereafter before singing the loan papers that the complainant found the interest rate is far higher than the Banking interest rate and the complainant asked to return the document.  But, in the month of December2016 when the complainant approached IDFC Bank for a personal loan and the same was refused stating that the complainant is declared defaulter as per CIBIL Report.  This attitude of the opposite parties amounts to deficiency of service and the same caused mental agony to the complainant.

8. While being so, on going through the written version and also the written argument, it is categorically admitted that the complainant applied loan for amount of Rs.4,00,000/- for the purchase of machine.  The 2^nd opposite party sanctioned the loan and the same was about to be disbursed to the complainant.  But the complainant had given instruction to stop loan process without any valid reason.  Further due to inadvertent technical issues, the name of the complainant had been updated in CIBIL record and when the complaint brought to the knowledge through the notice to the opposite parties immediately the opposite party rendered an apology and issued NO OBJECTION CERTIFICATE by the opposite parties. The mistake committed by the opposite parties is not deliberate and it is only technical error and therefore there is no deficiency in service on the part of the opposite parties.

9. At this juncture, on careful perusal of the rival submissions putforth on either side, it is crystal clear that there is no dispute in respect of the complainant has applied for loan of Rs.4,00,000/- from the opposite parties for purchase of a machine.  In the meantime the complainant does not want to avail the loan from the opposite parties and therefore the complainant requested the 2^nd opposite party to return the documents and the loan amount also not disbursed to the complainant. The complainant not availed the loan from the opposite parties.

10. Further the complainant alleged that the complainant applied for personal loan at IDFC Bank, but the IDFC Bank refused the loan and the reason that the complainant is declared defaulter as per CIBIL report.  Therefore the complainant applied for a report from CIBIL after paying necessary charges and the same has been marked as Ex.A1 (series).  In Ex.A1 (series) it is stated that the complainant is obtained loan of Rs.4,00,000/- and he is liable to pay a balance amount of Rs.1,85,170/- and the said amount has payable VISAGEHFPL.  But, the complainant has not borrowed any loan from the opposite parties and the opposite parties also admitted that there is a technical error, when the complaint brought to the knowledge through the notice to the opposite parties immediately the opposite party rendered an apology and issued NO OBJECTION CERTIFICATE by the opposite parties to the complainant on 22.12.2016 and the same has been marked as Ex.A2.  In Ex.A2 it is written as follows:-

We are writing this to apologize for the most unfortunate situation that has occurred due to our mistake.  Please accept our most sincere apologise for sending the wrong information to CIBIL.  We are pleased to inform you that, your caption loan was sanctioned on June 15 for Rs.4 lakhs, loan ID.0007LTL100213, but we have not disbursed the loan.

11. While so, the loan for purchase of Machine sanctioned on 15.06.2015 but the loan of Rs.4,00,000/- not disbursed to the complainant.  But as per CIBIL report there is outstanding amount of Rs.1,85,170/- payable to the opposite parties by the complainant.  Actually the complainant is not liable to pay any loan amount to the opposite parties and the above technical error occurred due to the negligent act of the opposite parties and therefore the complainant had issued a legal notice to the opposite parties which has been marked as Ex.A3 for which the opposite parties sent a reply notice to the complainant which is marked as Ex.A4.

12. Further the other contention raised by the opposite parties that the complainant had given instruction to stop loan process without any valid reason.  Further due to inadvertent technical issues the name of the complainant had been updated in CIBIL record and when the complaint brought to the knowledge through the notice to the opposite parties immediately the opposite parties rendered an apology and issued NO OBJECTION CERTIFICATE by the opposite parties. According to the opposite parties the mistake committed by the opposite parties is not deliberate and it is only technical error and therefore there is no deficiency in service on the part of the opposite parties.  But the reason stated by opposite parties are not acceptable. In such circumstances if actually the opposite parties acted in good faith they ought to taken steps to cancel the name of the complainant in CIBIL Report immediately when the loan is not availed by the complainant, but the opposite parties have failed to do so.  In the end, it is crystal clear that the 1^st and 2^nd opposite parties being the head of the company, M/s.Visage Holding &Finance (P) Ltd., and The Manager, Sales &Monitoring, M/s.Visage Holdings &Finance (P) limited respectively liable and responsible to pay the reasonable compensation to the complainant.  Further, because of the negligent act of the opposite parties the complainant unable to get personal loan and the same would cause mental agony to the complainant.

13. In the light of the above other facts and circumstances this forum holds that the deficiency in service on the part of the opposite parties and thereby causing mental and hardships to the complainant.  While so there is no iota of evidence to disprove the same on the side of the opposite parties.  Therefore the complainant is entitled for reasonable compensation with cost. Thus the points No.1and 2 are answered accordingly.

14. Point No.3:-

In the result, this complaint is allowed in part.  Accordingly, the 1^st and 2^nd Opposite Parties are jointly and severally directed to pay a sum of Rs.20,000/- (Rupees twenty thousand only) towards compensation for causing mental agony and financial loss due to the deficiency of service on the part of the 1^st  and 2^nd   Opposite parties and to pay a sum Rs.10,000/-(Rupees ten thousand only) towards cost of litigation to the complaint. 

The above amount shall be payable by the 1^st  and 2^nd  opposite parties within two months from the date of receipt of the copy of this order, failing which, the said amount shall carry interest at the rate of 9% per annum till the date of payment.

Dictated by the president to the steno-typist, transcribed and computerized by him, corrected by the president and pronounced by us in the open Forum of this 08^th February 2019.

   -Sd-                                                         -Sd-                         -Sd-

 MEMBER –II                                    MEMBER-I               PRESIDENT   

List of document filed by the complainant:-

list of document filed by the opposite parties1and2:-

-Nil-

      -Sd-                                                     -Sd-                                               -Sd-

  MEMBER –II                                    MEMBER-I                                  PRESIDENT