<br /> Date of Filing:15.02.2008<br /> Date of Order: 16.06.2008<br /> <br /> <br /> <br /> BEFORE THE II ADDITIONAL DISTRICT CONSUMER DISPUTES REDRESSAL FORUM SESHADRIPURAM BANGALORE-20<br /> <br /> Dated: 16TH DAY OF JUNE 2008<br /> PRESENT<br /> <br /> <br /> <br /> Sri. S.S. NAGARALE, B.A, LL.B. (SPL.), President.<br /> Smt. D. LEELAVATHI, M.A.LL.B, Member.<br /> Sri. BALAKRISHNA. V. MASALI, B.A, LL.B. (SPL.), Member.<br /> <br /> <br /> <br /> COMPLAINT NO: 436 OF 2008 <br /> <br /> R.V. Joshi,<br /> No.1/1, Gavipuram Main Road,<br /> Kempegowda Nagar,<br /> Bangalore-560 019. Complainant<br /> <br /> V/S<br /> Cholamandalam DBS Finance,<br /> Chola House, 28/1, <br /> Kensington Road,<br /> Opp: Gurudwara, Near Ulsoor Lake,<br /> M.G. Road, Bangalore. Opposite Party<br /> <br /> ORDER<br /> <br /> This is a complaint filed by the complainant stating that, he has availed personal loan of Rs. 3,00,000/- from the opposite party. The opposite party has collected Rs.6,734/- as processing fee. Opposite party offered 12% simple interest p.a on the loan. Complainant has stated that, he informed the opposite party that loan will be closed after six months. The opposite party informed the complainant that they will not charge any penal interest for pre-closer account. Complainant went to the opposite party after six months with balance amount and the opposite party refused to take the amount and refused to close the account. The complainant has submitted that he has left the job and he is unable to pay EMIs. Therefore, he requested that the opposite party may be directed to accept the loan amount and clear the complainant from the loan. <br /> 2. Notice was issued to opposite party. Notice was served by RPAD. In spite of service of notice opposite party has not appeared and defence version not filed. <br /> 3. Arguments are heard. <br /> REASONS<br /> 4. I have gone through the complaint and documents. The complainant has taken personal loan from the opposite party and he has paid some EMIs. Now the complainant wants to close the loan account by paying outstanding dues. The request of the complainant shall have to be accepted by the opposite party. Opposite party being a financial institution is not permitted in law to refuse the pre-closer of the loan account. It is the duty and obligation of the opposite party to accept the amount from the complainant and close the loan account. The opposite party is not entitled to charge any penal interest on account of the pre-closer of the loan account. Consumer Protection Act is enacted to provide better service and to protect the interest of the consumers. The protection of the consumers is the need of the hour. Consumer Protection Act is benevolent and social legislation intended to protect the consumers from the harassment or unreasonable demand of the powerful business houses. In this case the complainant is fair enough and he has taken a loan and remitted the portion of loan and now he wants to close the loan account by paying outstanding dues. The case of the complainant is that opposite party is refused to receive the amount and close the account. This cannot be done by the opposite party. Therefore, the opposite party shall be directed to receive the outstanding balance amount from the complainant and close the loan account. The opposite party shall also be directed that it is not permissible in law to charge penal interest for pre-closer of the loan account. When the complainant has come forward to pay the loan account how can the opposite party refuse to accept the amount. Therefore, it is a fit case to allow the complaint and issue directions to the opposite party to close the account and settle the matter with complainant in respect of the personal loan account of the complainant. In the result, we proceed to pass the following:- <br /> ORDER<br /> <br /> 5. The complaint is allowed. The opposite party is directed to receive the outstanding balance in respect of personal loan account of the complainant and close the account and issue no due certificate or closer account certificate to the complainant. It is ordered that opposite party is not entitled to charge penal interest for pre-closer of the loan account. The complainant shall approach the opposite party with this order and settle the matter amicably. <br /> <br /> <br /> 6. Send the copy of this Order to both the parties free of costs immediately. <br /> <br /> 7. Pronounced in the Open Forum on this 16TH DAY OF JUNE 2008.<br /> Order accordingly,<br /> <br /> PRESIDENT<br /> <br /> We concur the above findings. <br /> <br /> MEMBER MEMBER <br /> <br /> <br /> <br />