KERALA STATE CONSUMER DISPUTES REDRESSAL COMMISSION VAZHUTHACAUD, THIRUVANANTHAPURAM.

APPEAL No. 121/2009

JUDGMENT DATED:  16-11-2009

PRESENT:

JUSTICE SHRI. K.R. UDAYABHANU              :  PRESIDENT

SHRI. M.K. ABDULLA SONA                           :  MEMBER

N. Gopinadhan,

Ambadi, Vadasserikonam P.O.,                        :  APPELLANT

Varkala.

                                    Vs

1.      Secretary,                                                  :  RESPONDENTS

Ottoor Service Co-operative Bank Ltd.,

No. 976, Vadasserikonam P.O.,

Varkala.

2.      Ottoor Service Co-operative Bank Ltd.,

Vadasserikonam P.O., Varkala.

(R1 & R2 rep. by Adv. Sri. K. Rajendran)

JUDGMENT

JUSTICE SHRI. K.R. UDAYABHANU:   PRESIDENT

          The appellant is the complainant in OP 87/2003 in the file of CDRF, Thiruvananthapuram. The Forum has allowed the complaint and directed the opposite parties to refund the excess interest collected at the rate of 3% on the loan amount of Rs. 15,000/- from 14-08-1996 to 15-10-2001 and also to pay the share price with profit if any and also to pay Rs. 1,000/- towards compensation and costs.  The appellant/complainant, not satisfied with the order of the Forum has filed the appeal seeking for rescheduling of the interest from the date of the loan ie, 14-08-1996 at 14% or 12% and also interest on the excess amount collected by the opposite party.

2.      The case of the complainant is that he had availed a loan of Rs. 15,000/- for agricultural purposes on 14-08-1996.  The above amount was repaid as per the one time settlement scheme (OTS) on 28-03-2002.  Rate of interest was 18.5%.  He remitted Rs. 12,500/- towards interest till 27-03-2002.  The balance interest would be Rs. 3,125/-.  As per a circular of the Registrar of Co-operative Societies dated 27-09-2001 OTS was provided up to 31-03-2001.  The same was extended to more than one year.  The complainant remitted the entire amount on 28-03-2002.  He has claimed the benefits of the OTS and the share price with dividend and interest.  He had deposited 5% of the loan in the share of the bank.

3.      The opposite parties have contended that the complaint was sanctioned an ordinary loan of Rs. 15,000/- for a period of one year on security bond executed by the complainant and his wife on 14-08-1996.  The agreed interest was 18.5% and penal interest of 3% for the defaulted period exceeding one year.  The first remittance was made only on 30-05-2001 and hence the complainant is liable to pay the agreed rate of 18.5% and 3% penal interest ie, 21.5%.  The remittance made are also mentioned ie, Rs. 10,000/- on 30-05-2001; Rs. 490/- on 31-05-201; Rs.510/- on 08-06-2001; Rs. 500/- on 05-07-2001; Rs. 500/- on 07-08-2001; Rs. 500/- on 15-10-2001 and Rs. 3,125/- on 28-03-2002.  The one time settlement scheme circular dated 27-09-2001 provided for 14% interest for recovery of the defaulted amounts.  No retrospective effect has been mentioned.  The opposite parties levied interest at 14% from 16-10-2001 to 28-03-2002.  As such he was liable to pay Rs. 4,669/- towards interest but he paid only Rs. 3,125/-.  The complainant being a share holder of the bank is not entitled to get interest for the share amount.

4.      Evidence adduced consisted of the testimony of PW1, DW1, Ext. P1 to P2 and D1 to D9.

5.      The Forum has found that the opposite parties have not produced any evidence to show that the penal interest of 3% is liable to be levied.  Hence the penal interest levied from the very beginning was ordered to be paid back to the complainant.  Ext.D8, the copy of the bond executed by the complainant at the time of availing the loan mentions only 18.5% as interest.  It is the case of the appellant/complainant that he is entitled to have the interest at the rate of 14% or 12% as the Ext.P13 circular dated 27-09-2001 as per which the OTS was announced as per which the interest rate is 14% and as per Ext.P16 circular dated 27-02-2003 as per which the OTS was extended for one year the interest rate mentioned is 12%.  He has sought for rescheduling of the interest from the loan date ie, 14-08-1996.

6.      We find that the contention of the appellant in this regard cannot be upheld.  As per Ext.P13 and P16 circulars the OTS benefits are provided only for the outstanding amount.  The complainant has remitted Rs. 12,000/- during the period from 30-05-2001 to 07-08-2001.  Ext.P13 circular is dated 27-09-2001.  Hence the contention that he is entitled for rescheduling the loan and limiting the interest rate to 14% or 12% is highly illogical and is not envisaged by Ext.P13 or P16 circulars.  The balance remittance was made on 15-10-2001 and 28-03-2002.  Hence we find that there is no merit in the contention of the appellant in this regard.  So far as the claim for interest or interest ordered to be returned, we find that it is a matter of discretion of the Forum below.  We find that there is no scope for interference in the order of the Forum. 

In the result, the appeal is dismissed.

                                                JUSTICE K.R. UDAYABHANU:   PRESIDENT

                                        M.K. ABDULLA SONA           :  MEMBER