Order dictated by:

Mr.Anoop Sharma, Presiding Member

1.       Sh.Rajwinder Singh has brought the instant complaint under section 11 and 12 of the Consumer Protection Act, 1986 on the allegations that the complainant availed a car loan of Rs.3 lac on 7.3.2011 at the rate of interest 11.25% repayable in equated monthly installments of Rs.6300/- each under the loan account No. 8415NG00108651 from Opposite Party and at the time of disbursement of loan 60 post dated blank cheques for payment of Rs.6300/- per installment drawn on Andhara bank were handed over to the Opposite Party for the repayment of monthly installments ad as such, the complainant is a consumer of the Opposite Party as defined under the Consumer Protection Act.  On 2.2.2015, the complainant approached Opposite Party for taking No Objection Certificate after making the lumpsup payment of 6 balance installments which amounted to Rs.37,800/-, but the Opposite Party demanded an amount of Rs.75907/- instead of Rs.37800/- stating that there was the balance amount. When the complainant received statement of account of the loan account from Opposite Party, it was found that the cheques received from  the complainant towards the payment of  monthly installments were not presented regularly, but were presented after a gap of 2 to 5 at different intervals and the complainant was burdened  with penal interest and late payment charges while there was no fault of complainant in such presentation of cheques by the Opposite Party as all the 60 cheques were handed over to Opposite Party on the date of disbursement of loan itself and the complainant has always maintained sufficient balance in his said bank account for the encashment of such cheques which is evident from the fact that even cheques for multiple installments presented by the Opposite Party were cleared from time to time and there was not a single instance of dishonour of any of the cheques. When the complainant brought  this discrepancy to the notice of Opposite Party, the Opposite Party started making lame excuse by stating that there was some mistake in calculation of equated monthly installments initially and the correct installment was of Rs.6560/- instead of Rs.6300/- as earlier disclosed at the time of disbursement of loan. However, the complainant was shocked at the treatment meted out to him by Opposite Party and also due to  the fact that the Opposite Party never  claimed the correct installment of Rs.6560/- during the proceeding four and half years, but still the complainant was constrained to pay the dues in accordance with the installment of Rs.6560/- instead of Rs.6300/- and made the payment of Rs.64,402/- since two further installments were received during this period  by the Opposite Party, since the Opposite Party insisted on charging the penal interest and late payment charges without any fault on the part of complainant, to which the Opposite Party is not entitled at all. Since the complainant was in need of no objection certificate he had made the payment of entire amount  demanded by Opposite Party including the amounts illegally charged upon the account of complainant on the assurance of Opposite Party that shortly they would get the refund of the excess amount charged as well as issue no objection certificate, but till date the Opposite Party has neither refunded the amount nor had issued no objection certificate to the complainant which has led to undue and unnecessary  harassment, mental torture and agony, inconvenience besides monetary  loss to the complainant.             Vide instant complaint, the complainant has sought the following reliefs.

a)       Opposite Party be directed to refund the excess amount of Rs.38,107/- alongwith interest @ 12% per annum to the complainant and further directions be issued to Opposite Party to issue No Objection Certificate in favour of complainant. Further, directions may please be issued to Opposite Party to pay Rs.25,000/- as damages/ compensation to the complainant on account of mental pain, agony, harassment, inconvenience and monetary losses caused to the complainant by the Opposite Party besides cost of complaint and also grant any other relief to which the complainant is found  entitled to under law and equity. 

Hence, this complaint.

2.       Upon notice, Opposite Party appeared and contested the complaint by filing  joint written statement taking preliminary objections therein inter alia that the present complaint filed by complainant is not maintainable against the Opposite Party because the Opposite Party has never committed any fault and  has always  acted as prudent banker. The complainant has availed a car loan for Rs.3 lacs from Opposite Party and the repayment of the said loan was made to the complainant. At the time of calculation of interest, an excess interest of Rs.9338/- was charged and the said amount was later on credited to the saving account of complainant which was duly encashed by the complainant on 26.2.2016 and there is no other outstanding of the bank towards complainant, and accordingly complainant has already obtained no due certificate upon the adjustment of the loan account on deposit of total outstanding  in the loan account on 20.1.2016. The complainant has not deposited 60 post dated cheques in the bank. The complainant has only deposited 6 cheques with the Opposite Party bank. This fact has been admitted by the complainant in Letter of Hypothecation signed at the time of granting of loan. The allegation of deposition of 60 cheques at the time of granting of loan is wrong and hence denied. It is reaffirmed that the complainant has only deposited 6 cheques at the time of execution of documents. Moreover, it was the duty of the complainant to check his account regularly that the instalments are being paid on time or not. The complainant can not ignore his duty as he has to pay the instalment on time. As far as penal interest is concerned that has been charged due to the fault of complainant. If the complainant had  submitted the instalment on time them penal interest could not have been charged. The complainant is trying to shift his negligence on the part of Opposite Party. On merits, it was denied that cheques were not presented on time by the bank authorities. The authorities of the bank have sent the already deposited cheques for clearance on time and after clearance of all the already deposited cheques, the successive cheques were presented for clearance as and when they were supplied/ submitted by the complainant. The penal interest was charged by the bank because the complainant did not deposit the instalment on time and this  fault is on the part of the complainant.                 Remaining facts mentioned in the complaint are also denied and a prayer for dismissal of the complaint with cost was made.

3.       In his bid  to prove the case, complainant tendered into evidence  affidavit Ex.CW1/A in support of the allegations made in the complaint and also produced copies of documents Ex.C1  to Ex.C3  and closed his evidence.

4.       On the other hand, to rebut the evidence of the complainant, the Opposite Party tendered into evidence the affidavit of Sh.Mohinder pal Ex.OP1 alongwith copies of documents Ex.OP2 to Ex.OP7  and closed the evidence on behalf of the Opposite Party.

5.       We have heard the ld.counsel for the parties and have carefully gone through the evidence on record.

6.       The complainant has submitted his affidavit Ex.CW1/A in which he has reiterated the facts as detailed in the complaint and submitted that the complainant availed a car loan of Rs.3 lac on 7.3.2011 at the rate of interest 11.25% repayable in equated monthly installments of Rs.6300/- each under the loan account No. 8415NG00108651 from Opposite Party and at the time of disbursement of loan 60 post dated blank cheques for payment of Rs.6300/- per installment drawn on Andhara bank were handed over to the Opposite Party for the repayment of monthly installments and as such, the complainant is a consumer of the Opposite Party as defined under the Consumer Protection Act.  On 2.2.2015, the complainant approached Opposite Party for taking No Objection Certificate after making the lumpsup payment of 6 balance installments which amounted to Rs.37,800/-, but the Opposite Party demanded an amount of Rs.75907/- instead of Rs.37800/- stating that there was the balance amount. When the complainant received statement of account of the loan account from Opposite Party, it was found that the cheques received from  the complainant towards the payment of  monthly installments were not presented regularly, but were presented after a gap of 2 to 5 at different intervals and the complainant was burdened  with penal interest and late payment charges while there was no fault of complainant in such presentation of cheques by the Opposite Party as all the 60 cheques were handed over to Opposite Party on the date of disbursement of loan itself and the complainant has always maintained sufficient balance in his said bank account for the encashment of such cheques which is evident from the fact that even cheques for multiple installments presented by the Opposite Party were cleared from time to time and there was not a single instance of dishonour of any of the cheques. When the complainant brought  this discrepancy to the notice of Opposite Party, the Opposite Party started making lame excuse by stating that there was some mistake in calculation of equated monthly installments initially and the correct installment was of Rs.6560/- instead of Rs.6300/- as earlier disclosed at the time of disbursement of loan. However, the complainant was shocked at the treatment meted out to him by Opposite Party and also due to  the fact that the Opposite Party never  claimed the correct installment of Rs.6560/- during the proceeding four and half years, but still the complainant was constrained to pay the dues in accordance with the installment of Rs.6560/- instead of Rs.6300/- and made the payment of Rs.64,402/- since two further installments were received during this period  by the Opposite Party, since the Opposite Party insisted on charging the penal interest and late payment charges without any fault on the part of complainant, to which the Opposite Party is not entitled at all. Since the complainant was in need of no objection certificate he had made the payment of entire amount  demanded by Opposite Party including the amounts illegally charged upon th account of complainant on the assurance of Opposite Party that shortly they would get the refund of the excess amount charged as well as issue no objection certificate, but till date the Opposite Party has neither refunded the amount nor had issued no objection certificate to the complainant which has led to undue and unnecessary  harassment, mental torture and agony, inconvenience besides monetary  loss to the complainant. 

7.       On the other hand, ld.counsel for the Opposite Party has repelled the aforesaid contention of the ld.counsel for the complainant on the ground that the complainant has availed a car loan for Rs.3 lacs from Opposite Party and the repayment of the said loan was made to the complainant. At the time of calculation of interest, an excess interest of Rs.9338/- was charged and the said amount was later on credited to the saving account of complainant which was duly encashed by the complainant on 26.2.2016 and there is no other outstanding of the bank towards complainant, and accordingly complainant has already obtained no due certificate upon the adjustment of the loan account on deposit of total outstanding  in the loan account on 20.1.2016. The complainant has not deposited 60 post dated cheques in the bank. The complainant has only deposited 6 cheques with the Opposite Party bank. This fact has been admitted by the complainant in Letter of Hypothecation signed at the time of granting of loan. The allegation of deposition of 60 cheques at the time of granting of loan is wrong and hence denied. It is reaffirmed that the complainant has only deposited 6 cheques at the time of execution of documents. Moreover, it was the duty of the complainant to check his account regularly that the instalments are being paid on time or not. The complainant can not ignore his duty as he has to pay the instalment on time. As far as penal interest is concerned that has been charged due to the fault of complainant. If the complainant had  submitted the instalment on time them penal interest could not have been charged. The complainant is trying to shift his negligence on the part of Opposite Party. On merits, it was denied that cheques were not presented on time by the bank authorities. The authorities of the bank have sent the already deposited cheques for clearance on time and after clearance of all the already deposited cheques, the successive cheques were presented for clearance as and when they were supplied/ submitted by the complainant. The penal interest was charged by the bank because the complainant did not deposit the instalment on time and this  fault is on the part of the complainant.                

8.       The contention of the complaint that the complainant availed a car loan of Rs.3 lac on 7.3.2011 at the rate of interest 11.25% repayable in equated monthly installments of Rs.6300/- each under the loan account No. 8415NG00108651 from Opposite Party and at the time of disbursement of loan 60 post dated blank cheques for payment of Rs.6300/- per installment drawn on Andhara bank were handed over to the Opposite Party for the repayment of monthly installments. It is further contended that on 2.2.2015, the complainant approached Opposite Party for taking No Objection Certificate after making the lumpsup payment of 6 balance installments which amounted to Rs.37,800/-, but the Opposite Party demanded an amount of Rs.75907/- instead of Rs.37800/- stating that there was the balance amount. When the complainant received statement of account of the loan account from Opposite Party, it was found that the cheques received from  the complainant towards the payment of  monthly installments were not presented regularly, but were presented after a gap of 2 to 5 at different intervals and the complainant was burdened  with penal interest and late payment charges while there was no fault of complainant in such presentation of cheques by the Opposite Party as all the 60 cheques were handed over to Opposite Party on the date of disbursement of loan itself and the complainant has always maintained sufficient balance in his said bank account for the encashment of such cheques which is evident from the fact that even cheques for multiple installments presented by the Opposite Party were cleared from time to time and there was not a single instance of dishonour of any of the cheques. When the complainant brought  this discrepancy to the notice of Opposite Party, the Opposite Party started making lame excuse by stating that there was some mistake in calculation of equated monthly installments initially and the correct installment was of Rs.6560/- instead of Rs.6300/- as earlier disclosed at the time of disbursement of loan. A bare perusal of Ex.OP2 i.e. certificate dated 10.8.2016 issued by the Branch Manager of Opposite Party regarding calculation of interest manually in connection of account of the complainant and it is submitted that there is different of Rs.9338/- in calculation and this difference amount credited in the account of Rajwinder Singh  is withdrawn on 26.2.2016.  It is the case of the complainant that  there was some mistake in calculation of equated monthly installments initially and the correct installment was of Rs.6560/- instead of Rs.6300/-. In letter of hypothecation Ex.Op5 it is clearly mentioned that the monthly installment has been settled at Rs.6300/- per month, but the Opposite Party wrongly and illegally charged the monthly installment at Rs.6560/- which is not legal and valid and in this way, there is gross negligence on the part of the Opposite Party by charging more amount that the settled one.

9.       In view of the aforesaid facts and circumstances of the case, the Opposite Party is directed to issue ‘No Objection Certificate’ in favour of complainant. Beside this, Opposite Party is also directed to refund the excess amount charged on account of late payment charges with interest as the bank was authorized to debit the account of the complainant as per Conveyance letter clause 10. Opposite Party is also directed to pay Rs.2,000/- to the complainant on account of litigation expenses.  Copies of the order be furnished to the parties free of costs. File is ordered to be consigned to the record room. Case could not be disposed of within the stipulated period due to heavy pendency of the cases in this Forum.

Announced in Open Forum.