BEFORE THE DIST. CONSUMER DISPUTES REDRESSAL FORUM, DHENKANAL

                                                C.C.Case No. 89 of 2015

Basant Kumar Mohapatra, aged about 67 years

S/o late Ganeswar Mohapatra of Gandhimandir Road,

PS: Town, Dist: Dhenkanal                                                          Complainant

                                                                Versus

1) Odisha Gramya Bank, Dhenkanal Main Branch

    Infront of Town Police Station, Gudianali,

    Dhenkanal

2) Regional Manager, Odisha Gramya Bank,

     Near Balaram Temple, P.S: Town, Dist: Dhenkanal

3) General manager, Odisha Gramya Bank,

     Gandamunda Bhubaneswar, Dist: Khurda

4) Chairman,

     Odisha Gramya Bank, Bhubaneswar,

     At: Gandamunda Bhubaneswar, P.S: Khandagir,

    District: Khurda                                                                Opp.Parties

Present: Sri Badal Bihari Pattanaik, President,

                  Miss Bijayalaxmi Satapathy, Member

Counsel: For the complainant: Bhabagrahi Panda & Associates

                  For the Opp. Parties: B.K.Mangaraj & Associates

Date of hearing argument: 26.12.2016

Date of order:  6.1.2017

                                                                JUDGMENT

Sri Badal Bihari Pattanaik, President

                In the matter of an application U/s 12 of Consumer Protection Act, 1986 filed by the complainant alleging deficiency in service on the part of the Opp. Parties.

                1) Very briefly, the case of the complainant stated are that in order to earn livelihood the complainant intended to purchase a Bus by availing financial assistance.  Accordingly, he approached the Opp. Party No.1 for providing financial assistance of Rs. 20,00,000/- and the O.P. Bank agreed to providing financial assistance.  After execution of necessary document the O.P. Bank sanctioned the required loan on 30.9.2013.  As per the agreement it was agreed that the complainant will repay the loan amount with interest in 60 installments commencing from February, 2014 at the rate of Rs. 45,755/- and accordingly the complainant was paying the installment regularly.  Though the complainant was paying the installment regularly, he went to the Bank for payment of the installment but the concerned clerk decline to receive the installment on the ground that there was no link and the server was down.  On approach to the Branch Manager, he misbehaved the complainant for which petitioner felt ashamed and decided to close the loan account and O.P calculated the loan amount and the complainant paid Rs. 9,50,000/- on 8.11.2014 and Rs. 7,47,000/- But again the Bank told the complainant that Rs. 8613/- is still outstanding to be paid which was paid by the complainant on 20.1.2015 of Rs. 87000/-. Thereafter the account was Nil as told by the O.P. Bank.  The complainant after clearance of the loan dues demanded NOC but the O.P Bank instead of issuing NOC delayed the matter till April, 2015 and did not issue the NOC.  The complainant time and again requested the O.P Bank for issuance of NOC but the O.Ps did not pay any heed to it for which the complainant on 27.7.2015 sent a letterbut O.P  claimed inspection charge of Rs. 1,000/- and interest of Rs. 97/- which is not payable by the complainant.  But the O.P Bank illegally taken an amount of Rs. 1097/- from the Bank pass book of the complainant.  After repayment of the illegal demand  of Rs. 1097/-   the O.P Bank did not issue N.O.C in favour of the complainant which amounts to deficiency in service.  The complainant sent a legal notice on 28.9.2015 for issuance of NOC but the O.Ps did not take any action to issue N.O.C which also amounts to deficiency in service.  Therefore, the complainant has come up before this Forum seeking for a direction to the O.Ps to issue N.O.C in respect of Bus No. Od-05-G/2222 and to pay compensation of Rs. 80,000/- towards mental agony and financial loss.  Besides, the complainant claims cost of the

litigation of Rs. 15,000/- along with refund of Rs. 1097/- with interest @ 12.5% per annum from 27.4.2015 till the date of refund. The contents of the petition are supported by affidavit.

                2)  The Opp. Parties appeared and filed written version.  It is in the version of the Opp. Parties that the complainant is not a consumer and the case is not maintainable. It is admitted that the loan in question was advanced to the complainant to purchase a Bus for commercial purpose and thus the complainant is the owner of several vehicles and running his transport business as such he is not a consumer.  The Opp. Parties are not at all liable for any deficiency in service as alleged by the complainant. The O.P. Bank have never raised or demanded any illegal amount.  It is admitted that the O.P Bank has financed a sum of Rs. 20.00 lakhs after execution of necessary loan documents vide loan A/c No. 050103311300011.  The allegation of refusal of the clerk to receive the amount from the complainant is denied as the concerned clerk has received money from other customers on that date which proves that the server was working perfectly. The complainant in order to close his loan account paid a sum of Rs. 9,50,000/- on 8.11.2014 and a sum of Rs. 7,47,000/- on 14.11.2014 against his loan outstanding.  There was a remaining balance of Rs. 76/- along with the accruing interest.   Unless he cleared the entire outstanding along with the Pre-closure charges @ 1% he is not entitled to get the loan clearance certificate.  The complainant had made a request to the O.P.No.4 through one representation for waiver of the payment of Pre-closure charges   and after receipt of the said letter the O.P. Bank had sought for the comments on the matter from its Branch Manager vide letter No.405/2014-15 Dt. 10.12.2014 which was replied by the Branch Manager vide his letter No.08/14 dt. 15.12.2014 stating therein that the complainant was to make payment of 1% Pre-closure Charge as per the Circular, i.e. Rs. 18,000/- but the petitioner was reluctant for payment of such amount.  On 20.1.2015 the petitioner had come to the   Bank to enquire about the fate of his representation regarding the said pre-closure and very cunningly, the petitioner by requesting the concerned Officer to compute the total outstanding amount against his loan account as on that date who calculated the same to be Rs. 8,707/- and the complainant made payment of Rs. 8,700/- on the very date.  The loan account was never made Nil `after the said payment of Rs. 8,700/- . Subsequently the   Head Office directed to the Regional Manager vide its letter No.607/14-15 dated 29.1.2015 to close the loan account of the complainant after collection of Rs. 8,000/- towards  Pre-closure charges after considering the request of the complainant.  The complainant was intimated accordingly and a copy of the letter dated 29.1.2015 of the Head Office was supplied to him.   On 27.4.2015 the complainant suppressing the receipt of the letter of the Head Office managed to make payment of Rs. 1,097/- making a Nil figure in the loan account.  As the concerned official of the advance section of the O.P. Bank had newly joined and   was not aware of the instruction of the Head Office.   The O.P. Bank has never harassed the complainant.   Therefore, it is pleaded that the complainant is liable to pay the Pre Closure charge of Rs. 8,000/- after which he will be entitled to get the required clearance.    It is also pleaded that there is no deficiency in service on the part of the Opp. Parties and the case is liable to be dismissed.  The contents of the written version are supported by affidavit.  

                2) On the aforesaid pleadings of the respective parties the only point needs to be considered as to whether the Opp. Parties are in deficiency in service by not issuing the N.O.C   of the loan account to the complainant?  Admittedly, the complainant has availed loan of Rs. 20.00 lakhs after execution of necessary loan documents vide loan A/c No.050103311300011 and purchased a Bus bearing Regd. No. OD-05-G-222.  It is also admitted that the complainant had paid a sum of Rs. 9,50,000/- on 8.11.2014  and Rs. 7,47,000/- on 14.11.2014 against his loan outstanding and there was a balance of Rs. 76/- along with accrued interest.  The complainant was informed strictly on 14.11.2014 that unless he cleared the entire outstanding along with the Pre-closure charges @ Rs. 1% he will not be entitled to obtain the loan clearance certificate.  The case of the complainant is that    after payment of Rs. 9,50,000/- on 8.11.2014 and Rs. 7,47,000/-  the complainant asked the Opp. Party Bank for issuance of N.O.C in his favour.  The O.P Bank again told that for issuance of NOC the complainant has to pay a sum of Rs. 8613/- and accordingly on 20.1.2015 paid a sum of Rs. 8700/- and the account was then Nill.   But the O.P. Bank instead of issuing NOC immediately, delayed the matter and did not issue NOC for which the complainant has come up before this Forum seeking for a direction to the Opp. Parties to issue NOC and to pay compensation for their deficiency in service.    It is the case of the O.P.Bank the complainant had made a request before the O.P.No.4 through one representation for waiver of the pre-closure Charges @ 1% .   The matter was taken up by the Head Office of the O.P. Bank for consideration. Pending the decision of the  the Head Office  the complainant was instructed  to make payment of 1%  for Pre Closure charges as per the circular which comes to Rs. 18,000/- , but the petitioner was reluctant for payment of such amount.  But the complainant on 10.1.2015 made payment of Rs. 8,700/- but the loan account was never made Nil after the said payment.  The Head Office of the O.P. Bank entertained the request of the complainant with a direction to the Regional Manager vide its letter No.607/14-15 dated 29.1.2015 to close the loan account of the complainant after collection of Rs. 8,000/- towards Pre-closure charges. On our perusal of the letter dated 29.1.2015 issued by the  Odisha Gramya Bank, Head Office, Gandamunda, Khandagiri, Bhubaneswar addressed to the Regional Manager, Odisha Gramya Bank, Dhenkanal Region  we find that the  grievance of the complainant regarding waiver of pre-closure charges in favour of the Borrower in his loan account No.05010311300011 the Branch has been permitted to close the loan account of the complainant with collection of pre closure charge of Rs. 8,000/- (Rupees eight thousand only) Further on our perusal of the letter marked as Ext. D and Ext. F we find that it has been decided by the Head Office of the Opp. Party Bank that the Branch has been permitted to close the loan account in question on collection of pre-closure charge of Rs. 8,000/- from the complainant.  Since the complainant has not paid a sum of Rs. 8,000/- towards pre-closure of the account there is no deficiency in service for   by not issuing the N.O.C in favour of the complainant.  Further on our perusal of the record we do not find any documents/circular of the Opp. Party Bank to charge 1% for pre-closure of the account.  In absence of any agreement or circular in respect of charging 1% for pre-closure we are of the view that the complainant is not liable to pay any pre-closure charges and accordingly we come to a conclusion that non-issuance of N.O.C in the loan account to the complainant amounts to deficiency in service when he has already cleared the loan dues.  Hence ordered.

                                                                ORDER

                The complaint is allowed on contest.  The Opp. Parties are directed to issue N.O.C in favour of the complainant under loan account No. 05010311300011. Besides, the Opp. Parties are directed to pay compensation of Rs. 5,000/- (Rupees five thousand) only along with cost of the litigation of Rs. 2,000/- (Rupees two thousand) only to the complainant.  The compliance of the directions shall be made by the O.Ps jointly and severally within a period of one month from the date of receipt of this order failing which the Opp. Parties shall be liable to pay interest over the awarded amount @ 12% per annum.

        (Miss Bijayalaxmi Satapathy)                  (Badal Bihari Pattanaik)

                       Member                                                 President