BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, MYSORE-570023

CONSUMER COMPLAINT NO.1562/2016

DATED ON THIS THE 10^th February 2017

      Present:  1) Sri. H.M.Shivakumara Swamy

B.A., LLB., - PRESIDENT   

    2) Smt. M.V.Bharathi                    

                                   B.Sc., LLB., -  MEMBER

                     3) Sri. Devakumar.M.C.                  

                                                          B.E., LLB.,    - MEMBER

Sri H.M.SHIVAKUMARA SWAMY,

President

1.     This complaint filed for a direction to opposite party to pay Rs.1,12,450/- being the processing charges collected by the opposite party, loss suffered by the complainant and legal notice charges.
2.     The brief facts alleged in the complaint are that the opposite party Housing Finance Limited has made wide publication of sanctioning of housing loan to the needy persons.  Accordingly, the complainant approached the opposite party and collected photocopies of the title documents relating to property No.3, Survey No.14/1, Yaraganahalli Village, Mysuru and opposite party has obtained signature of the complainant on several application and forms, on 17.08.2016 assuring to process the application and to get the sanction of the loan within one week.  The opposite party has assured to sanction loan of Rs.15,00,000/-.  All the necessary security documents, 7 security cheques drawn on Syndicate Bank.  The opposite party has collected Rs.5,700/- as processing charges on 02.09.2016 through Corporation Bank, Lakshmipuram Branch, Mysuru.  Again on the same day, the opposite party has collected another sum of Rs.5,750/- from the Syndicate Bank Account of the complainant.  Thereby, the opposite party has collected totally Rs.11,450/- towards processing charges.  The complainant has complied with all the requirements to get the loan of Rs.15,00,000/-.  The opposite party did not sanction the loan without any reason.  Thereby, the complainant has suffered loss of Rs.1,00,000/- and there is deficiency in service on the part of opposite party.  Hence, this complaint is filed.
3.     The opposite party served with notice absent, placed exparte.
4.     On the above pleadings, the matter is set down for complainant’s evidence.  During evidence, complainant has filed affidavit evidence.  After hearing arguments, this matter is posted for orders.
5.     The points arose for our consideration are:-

1. Whether the complainant establishes that the opposite party has collected processing charge of Rs.5,700/- +  Rs.5,750/- for the purpose of sanctioning the housing loan and failed to sanction the housing loan, thereby there is deficiency in service, as such the complainant is entitled for the relief claimed?
2.  What order?

6.    Our findings on the aforesaid points are as follows:

Point No.1 :- Partly in the affirmative.

Point No.2 :- As per final order for the following

:: R E A S O N S ::

7.    Point No.1:- During evidence, the complainant has submitted his affidavit evidence which reveals that the complainant is the owner of property bearing No.3, survey No.14, Yaraganahalli Village.  On the pond hope of getting the housing loan, he has approached the opposite party and submitted all the necessary documents and paid Rs.5,700/- towards processing charges on 02.09.2016.  Even thereafter, the opposite party has not sanctioned the loan.  On the other hand, opposite party has collected another sum of Rs.5,750/- on 02.09.2016 itself from the account of complainant in Syndicate Bank.  Thereby, illegally opposite party has collected Rs.11,450/- towards processing charges and without any reason, not sanctioning the loan, though the complainant supplied all the relevant documents to the opposite party.  Thereby, the complainant submits that collection of Rs.11,450/- towards processing charges without sanctioning the loan amount is deficiency in service.  Further, the complainant has suffered loss to the extent of Rs.1,00,000/-.  Thereby, the complainant has sought for an order against the opposite party. 
8.    By going through the evidence, allegations in the complaint and also the document produced by the complainant.  It is clear that on 02.09.2016, a sum of Rs.5,700/- was collected by opposite party i.e. PNB Housing Finance Ltd., from the account of the complainant in Corporation Bank, which is evident from the accounts produced by the complainant.  Even the complainant has produced another account extract of Syndicate Bank which is also discloses on 02.09.2016, a sum of Rs.5,750/- was collected by the opposite party housing finance by clearing from the account of the complainant, for which purpose, this amount was collected by the opposite party is not forth coming in the cash sheet.  But, the complainant alleges that it is for the purpose of sanctioning the loan by the opposite party and that is the processing charges. 
9.    Though, opposite party has collected processing charges, loan was not sanctioned as alleged by the complainant.  But, what was the reason for non-sanctioning of the loan is not forth coming, if any reason assigned by the opposite party relating to the title to the property or any other encumbrance on the property.  Then, there was no need for complainant to demand for refund of such amount collected by the opposite party.  But, in this case, in the absence of any reason for non-sanctioning the loan and collection of processing charges amounts to deficiency in service.  Thereby, the opposite party is liable to answer the claim of question.  Hence, Point No.1 is answered partly in the affirmative.
10. Point No.2:- In view of the findings recorded on point No.1, opposite party is liable to refund processing charges of Rs.11,450/-, compensation of Rs.10,000/- and litigation expenses of Rs.2,000/-.  Hence, we pass the following order:-

:: O R D E R ::

1. The complaint is allowed in part.
2. Opposite party is hereby directed to refund Rs.11,450/- being the processing charges with interest at 18% p.a. from the date of complaint i.e. 08.11.2016 till payment.
3. Opposite party is hereby directed to pay compensation of Rs.10,000/- with litigation expenses of Rs.2,000/- to the complainant in 30 days from the date of this order, failing which the said sum of Rs.12,000/- shall carry interest at 18% p.a. from the date of complaint i.e. 08.11.2016 till payment.   
4. In case of default to comply this order, the opposite party undergo imprisonment and also liable for fine under section 27 of the C.P.Act, 1986.
5. Give the copies of this order to the parties, as per Rules.

(Dictated to the Stenographer transcribed, typed by her, transcript corrected by us and then pronounced in open court on this the 10^th February 2017)

                          (H.M.SHIVAKUMARA SWAMY) 

                                      PRESIDENT     

(M.V.BHARATHI)                           (DEVAKUMAR.M.C.)

      MEMBER                                         MEMBER