BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM VAZHUTHACAUD : THIRUVANANTHAPURAM
PRESENT:
SHRI. G. SIVAPRASAD : PRESIDENT SMT. BEENA KUMARI .A : MEMBER SMT. S.K. SREELA : MEMBER
O.P.NO. 87/2003 Dated: 30..12..2008
Complainant:
N. Gopinathan, Ambadi, Vadasserikonam – P.O., Varkala.
Opposite parties:
1. Secretary, Ottoor Service Co-operative Bank Ltd. No.976, Vadasserikonam – P.O., Varkala.
Addl.2nd opp. Party:
2. Ottoor Service Co-operative Bank Ltd.No.976, Vadasserikonam – P.O., Varkala. (By Adv. K. Rajendran)
This O.P having been heard on 29..11.2008, the Forum on 30.12..2008 delivered the following:
ORDER
SHRI. G. SIVAPRASAD, PRESIDENT:
The facts leading to the filing of the complaint are that the complainant had availed a loan of Rs.15,000/- for agricultural purposes on 14..08..1996 from the opposite parties, that the said loan amount was repaid under one time settlement scheme of the bank on 28..03..2002, that the complainant was liable to remit interest at the rate of 18.5%. Complainant had remitted an amount of Rs.12,500/- towards interest until 27..03..2002 and balance interest amount would come to Rs. 3,098/-, but opposite parties collected Rs.3,125/- from the complainant. Opposite parties have no right to charge interest exceeding 12%. On 27..09..2001 the Registrar of Co-operative Bank issued a circular by which one time settlement was proposed for closing the defaulted loans upto 31..03..2001. Such facility was available to defaulted loan till 31..03..2002, since the complainant had remitted the entire amount on 28..03..2002, the complainant is also entitled to get the benefit of the one time settlement. At the time of taking loan complainant had deposited 5% of the loan in the share of the bank. Since the said loan remains closed, complainant is entitled to get the share price with dividend and interest there on. Hence this complaint claiming refund of excess interest collected by opposite parties from the complainant and refund of share price with dividend and interest thereon and other reliefs. 2. Opposite parties entered appearance and filed version contending that the complaint is not maintainable. Complainant has no cause of action to file this complaint. Complainant is a share holder of Ottoor Service Co-operative Bank. On 20..05..1996 the complainant applied for an ordinary loan of Rs.15,000/- for a period of one year. As per the resolution No.97/96 dated 26..05..1996, the director board of the said bank had sanctioned an ordinary loan of Rs.15,000/- to the complainant, and the complainant and his wife jointly executed the security bond dated 12..06..1996 and complainant received the said amount for a period of one year. The agreed interest for the said loan was 18.5% & 3% of penal interest if defaulted for a period exceeding one year. The complainant made the first remittance only on 30..05..2001. Hence the complainant is liable to pay the interest at the agreed rate of 18.5% with 3% penal interest that is 21.5%. The complainant has made the remittance as shown below: Date : 14..08..1996 Amount Disbursed : Rs. 15,000/- Date Period Interest to be Amount remitted Balance remitted
14.8.97 365 days 2775.00 - 2775.00
30.5.01 1383 ” 14994.65 10000 4994.65 31.5.01 1 ” 5003.48 490 4513.48 08.6.01 8 ” 4584.16 510 4074.16 05.7.01 27 ” 4312.72 500 3812.72 07.8.01 33 ” 4103.00 500 3603.00 15.10.01 69 ” 4212.00 500 3712.00 28.3.02 5months 14 days 957+3712=4669 3125 1544.00
In the meantime as per circular No.35/01 dated 27..09..2001 the Registrar of Co-operative Society accorded sanction for one time settlement with 14% interest for recovery of the defaulted amount in pending loans of Co-operative Banks. But directions were given as per CB(1)/27812/01 dated 12..10..2001. The director board of the bank in its meeting held on 04..01..2002 had resolved as per resolution No.467/02 to implement the scheme of "one time settlement" in the bank. As per complainant's loan is concerned an amount of Rs.3,712/- was outstanding towards interest when complainant remitted Rs.500/- on 15..10..2001. No retrospective effect is granted for one time settlement. For getting the benefit of one time settlement complainant had not applied to the bank for the same after remitting at least 10% of the outstanding of the defaulted amount due to the bank. Opposite parties had levied charge at the rate of 14% interest for the said loan from 16..10..2001 to 28..03..2002. Complainant is liable to remit Rs. 4,669/- but remitted only Rs.3,125/-. Complainant has suppressed material facts. The Annual General Body of the bank held on 24..01..2004 had unanimously resolved to transfer the balance of net profit of the bank excluding statutory reserve funds for the period 1996 – 1997 to 2000 – 2001 to the building fund of the bank. Complainant being a share holder of the bank is not entitled to get interest for the share amount. The complainant is not entitled to get any amount from the opposite parties. Hence opposite parties prayed for dismissal of the complaint with cost. 3. The points that would arise for consideation are: Whether opposite parties have collected excess interest from the complainant? Whether complainant is entitled to get the benefits of 'one time settlement' for the amount remitted prior to the circular dated 27..09..2001? Whether complainant is entitled to get share price with dividend and interest thereon? Other Reliefs:
4. In support of the complaint, complainant has filed affidavit and marked Exts.P1 to P22. Complainant has been cross examined by opposite parties. In rebuttal, opposite parties have filed affidavit and marked Exts. D1 to D9 and opposite parties have been cross examined by the complainant.
5. Points (i) to (v): It has been the case of the complainant that complainant had availed a loan of Rs.15,000/- for agricultural purposes on 14..08..1996 from the opposite parties, that the said loan amount was repaid under 'one time settlement scheme' of the bank on 28..03..2002, that complainant was liable to remit interest at the rate of 18.5% that till 27..03..2001 complainant remitted an amount of Rs.12,500/- towards interest amount and balance interest amount would be Rs.3,098/- but opposite parties collected Rs.3,125/- from the complainant. It has also been the case of the complainant that as per the circular dated 27..09..2001 issued by Registrar of Co-operative Societies, 'one time settlement scheme' was proposed for closing defaulted loans upto 31..03..2001, that under the said scheme, avoiding the penal interest, and compound interest, opposite parties were directed to collect loan interest or market rate of interest whichever is less, that such facility was available to defaulted loan till 31..03..2002 and that since the complainant had remitted the entire amount on or before 28..03..2002, opposite parties informed him on 09..03..2002 that he would also get the benefit of 'one time settlement'. It has been resisted by the opposite parties by submitting that, opposite parties have sanctioned an ordinary loan of Rs.15,000/- to the complainant for a period of one year and complainant received the same on 14..08..1996, and that the interest rate agreed was 18.5% and 3% penal interest if defaulted for a period exceeding one year. Submission by the opposite parties was that complainant had made the first remittance on 30..05..2001, that complainant is liable to pay the interest at the agreed rate of 18.5% with 3% penal interest. Ext.D4 is the copy of the loan application submitted by the complainant. As per Ext.D4 the application is for ordinary loan, the amount demanded is for Rs.15,000/- date of application is 20..05..1996 and the loan period is for one year. Loan category is OL Loan, and the committee decision No.is 97/96. As per Ext.D8 security bond executed by the complainant the rate of interest mentioned is 18.5% and complainant agreed to repay the loan with interest within one year. It is pertinent to note that as per committee decision No. 97/96 dated 26..05..1996, it was decided to charge interest at the rate of 18.5% for a period of one year, while as per Ext.D1 opposite parties' loan register the interest rate mentioned is 18.5% + 3% = 21.5%. As per Ext. D8, complainant is liable to pay interest at the rate of 18.5%. Nowhere in Ext.D8, or in the committee decision, the penal interest is mentioned, while opposite parties have calculated interest at the rate of 21.5% as per Ext.D1. Submission by the opposite parties was that the rate of interest fixed by the Bank was agreed by both the parties, but no material on record to show that complainant has agreed with the rate of interest calculated by the bank. The onus of proving the liability of the complainant to pay penal interest would lie on the opposite parties. As per opposite parties statement of account the interest accrued as on 30..05..2001 was Rs.15,462/- calculated at the rate of 21.5% instead of 18.5% as seen in the bond executed by the complainant. Thereafter from 30..05..2001 to 15..10..2001 opposite parties have continued to levy interest at the rate of 21.5%. Claiming of interest at the rate of 21.5% contrary to the provisions in the bond/agreement, would amount to unfair trade practices. On perusal of Exts. P7 to P12, it would be evident that opposite parties have collected interest at the rate of 21.5%. From 16..10..2001 to 28..03..2002 opposite parties have levied interest at the rate of 14%. At this juncture, it would be worthwhile to mention the circular No. 35/2001 dated 27..09..2001 issued by the Office of the Registrar of Co-operative Societies Ext.P13 is the said circular, Registrar of Co-operative Societies issued the Ext.P13 circular under the scheme of 'one time settlement for closing the defaulted loans excluding penal interest and realising the interest in the documents, or then prevailing interest whichever is less, in the defaulted loans upto 31..03..2001. The said one time settlement facility was available upto 31..03..2002 and Primary Credit Societies and their related banks were directed to implement the scheme of one time settlement on or before 31..03..2002. A perusal of Ext.P13 would reveal that repayment in one go or in installment would be available under the scheme of one time settlement. Submission by the opposite parties was that the guidelines for implementing the scheme of one time settlement was issued by the Registrar on 12..10..2001 and that the director board of the opposite parties in its meeting held on 04..01..2002 resolved as per resolution No.467/2002 to implement the said scheme of one time settlement on the bank also and no retrospective effect granted for one time settlement. Opposite parties did not produce the copy of the said resolution nor did furnish the copy of the guidelines issued by the Registrar dated 12..10..2001. In his cross examination complainant deposed that he did know the date of resolution. Hence the onus of proving the date of resolution would lie on the opposite parties. Ext.P14 is the letter dated 09..03..2002 issued by the opposite parties to the complainant informing him of the benefits of the said one time settlement. As per Ext.P14 (A) circular No.6/02 dated 22..03..2002 the interest rate is seen revised. That is, for advance upto Rs.50,000/- the maximum rate of interest to be charged is at the rate of Rs.13%. Ongoing through the affidavits, deposition, and documents furnished by the complainant and opposite parties. We are of the considered opinion, opposite parties, instead of charging rate of interest at the rate of 18.5%, charged at the rate of 21.5% upto 15..10..2001 and from 16..10..2001 to the date of repayment of the said loan opposite parties had charged 14%. Hence we conclude opposite parties have collected excess rate of interest from the complainant. This would definitely amount to unfair trade practice and deficiency in service on the part of opposite parties. Taking into consideration of the totality of the circumstances we think it will be expedient and justice will be well met if opposite parties is directed to charge 18.5% from the complainant from 14..08..1996 to 15..10..2001 and 14% interest thereafter till the repayment of the said loan and return the excess interest amount collected at the rate of 3% to the complainant. The next point requiring consideration is whether complainant is entitled to get share price with dividend and interest thereon. Submission by the complainant is that in connection with the said loan complainant has deposited 5% of the loan in share. As per Ext.P6 receipt dated 14..08..1996, complainant had deposited Rs.740/- in share in addition to the deposit of Rs.10/-. Submission by the opposite parties is that complainant can collect the said share amount on production of proper receipt for the same. As per Ext.P1 receipt dated 28..03.2002 complainant has remitted a sum of Rs.18,180/- to opposite parties and closed the said loan. Since the said loan stands closed, complainant is entitled for refund of the share price with profit if any thereon. Submission by the opposite parties was such that as per Bye law of the bank, the General Body of the Bank is the authority to decide regarding the profit of the bank and that on 24..01..2004, the General Body of the Bank unanimously resolved to transfer the balance of net profit of the bank excluding statutory reserve funds for the period 1996 – 97 to 2000 – 2001 to the building fund of the bank. In his cross examination complainant deposed that complainant was not present at the General Body Meeting held on 24..01..2004 and, but present at the General Body Meeting held in the year 2007, and that he was not aware of the decision taken by the General Body held on 24..01..2004. Opposite parties did not produce the copy of minutes book nor did complainant furnish any documents to show the share profit. In view of the above, we find complainant is entitled to get share price with profit, if any, as the above said loan was closed on 28..03..2002.
In the result, complaint is allowed. Opposite parties shall jointly and severally refund the excess interest collected from the complainant at the rate of 3% on the loan amount of Rs.15,000/- from 14..08..1996 to 15..10..2001 to the complainant, opposite parties shall also pay to the complainant the share price with profit if any. Opposite parties shall also pay Rs.1,000/- (Rupees One thousand only) towards compensation and cost.
A copy of this order as per the statutory requirements be forwarded to the parties free of charge and thereafter the file be consigned to the record room.
Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the open Forum, this the 30th day of December, 2008.
G. SIVAPRASAD, PRESIDENT. BEENA KUMARI .A : MEMBER
S.K. SREELA : MEMBER
ad.
O.P.No.87/2003 APPENDIX I. C omplainant's witness: PW1 : Gopinathan II. Complainant's documents: P1 : Receipt dated 28.03.2002 for Rs.18180 issued by 2nd opposite party. P2(a) : " dated 30..03..2002 for Rs.50/- " P2(b) : Acknowledgment card dated 16.05.2002 P3 : Copy of letter dated 13.05.2002 issued by complainant to opp. Parties. P4 : Application form for agriculture loan P5 : Copy of agreement deed dated 12.06.1996 P6 : Receipt No.18642 dt. 14.07.1996 for Rs.759/- P7 : Receipt dated 30.05.2001 for Rs.10020 P8 : " dated 31.05.2001 for Rs. 490/- P9 : " dated 08.06.2001 for Rs.510/- P10 : " dated 05.07.2001 for Rs.500/- P11 : " dated 07.08.2001 for Rs.500/- P12 : " dated 15.10.2001 for Rs. 500/- P13 : Circular No.35/01 dated 27.09.2001 of C.B(1)/ 27812/2001 from Office of the Registrar of Co- operative Societies,Tvpm. P14 : Letter No.5053 dt. 09.03.2002 issued to the complainant by opp. Parties. P14(a) : Circular No.6/2002 dated 22.03.2002 of CB(2)/ 30753/2001 from Office of the Registrar of Co- operative Societies, Tvpm. P15 : Malayala Manorama Daily Newspaper cutting dated 26.02.2003 P16 : Circular No.12/2003 dt.27.02.2003 of CB(1)/ 27812/01 from the Office of the Registrar of Co- operative Societies,Tvpm. P17 : Letter No.CB(1)/18055/03 dated 17.06.2003 from the Office of the Registrar of Co-operative Societies, Tvpm. P18 : Letter No.CRP(2)/10082/02/Ldis. dated 29.03.2003 from the Office of the Joint Registrar (General) Co- operative Societies,Tvpm. P19(a) : Letter dated 14.04.2003 issued to the 1st opposite party by the complainant. P20 : Photocopy of receipt dated 03.04.2003 for Rs.15203/- P21 : Letter No.CR3/A/2709/03 dated 13.08.2003 subjected to non-receipt of acknowledgment from the Manager, Customer Care Centre, Deptt. Of Post,Tvpm. P22 : Phoptocopy of minutes ref.No.467/01 dated 04.01.2002 III. Opposite parties' witness: DW1 : Prafullachandran IV. Opposite parties' documents:
D1 : Ledger copy of loan No.OC/16/96-97 dt.14.08.96 D2 : Letter No.KBM-589/2003/Ldis dated 27.08.2003 from the Asst. Registrar (General), Co-operative Society, Chirayinkil. D3 : Letter dated 13.05.2002 issued to the opposite parties by the complainant. D4 : Copy of application for loan for Rs.15,000/- D5 : Photocopy of ledger of loan No.OC/16/96-97 dt.14.08.96 D6 : Photocopy of Agreement Deed dated 12.06.1996 D7 : Copy of affidavit submitted by opp. Parties to the President, CDRF dated 22..03..2004. D8 : Attested copy of security bond signed by the complainant D9 : Letter No.CRP-(2)/3630/08 dated 5.8.08 from the Joint Registrar (General), Office of the Co-operative Society of Joint Registrar, Tvpm.
PRESIDENT ad.
BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM VAZHUTHACAUD : THIRUVANANTHAPURAM
PRESENT:
SHRI. G. SIVAPRASAD : PRESIDENT SMT. BEENA KUMARI .A : MEMBER SMT. S.K. SREELA : MEMBER
O.P.NO. 87/2003 Dated: 30..12..2008
Complainant:
N. Gopinathan, Ambadi, Vadasserikonam – P.O., Varkala.
Opposite parties:
1. Secretary, Ottoor Service Co-operative Bank Ltd. No.976, Vadasserikonam – P.O., Varkala.
Addl.2nd opp. Party:
2. Ottoor Service Co-operative Bank Ltd.No.976, Vadasserikonam – P.O., Varkala. (By Adv. K. Rajendran)
This O.P having been heard on 29..11.2008, the Forum on 30.12..2008 delivered the following:
ORDER
SHRI. G. SIVAPRASAD, PRESIDENT:
The facts leading to the filing of the complaint are that the complainant had availed a loan of Rs.15,000/- for agricultural purposes on 14..08..1996 from the opposite parties, that the said loan amount was repaid under one time settlement scheme of the bank on 28..03..2002, that the complainant was liable to remit interest at the rate of 18.5%. Complainant had remitted an amount of Rs.12,500/- towards interest until 27..03..2002 and balance interest amount would come to Rs. 3,098/-, but opposite parties collected Rs.3,125/- from the complainant. Opposite parties have no right to charge interest exceeding 12%. On 27..09..2001 the Registrar of Co-operative Bank issued a circular by which one time settlement was proposed for closing the defaulted loans upto 31..03..2001. Such facility was available to defaulted loan till 31..03..2002, since the complainant had remitted the entire amount on 28..03..2002, the complainant is also entitled to get the benefit of the one time settlement. At the time of taking loan complainant had deposited 5% of the loan in the share of the bank. Since the said loan remains closed, complainant is entitled to get the share price with dividend and interest there on. Hence this complaint claiming refund of excess interest collected by opposite parties from the complainant and refund of share price with dividend and interest thereon and other reliefs. 2. Opposite parties entered appearance and filed version contending that the complaint is not maintainable. Complainant has no cause of action to file this complaint. Complainant is a share holder of Ottoor Service Co-operative Bank. On 20..05..1996 the complainant applied for an ordinary loan of Rs.15,000/- for a period of one year. As per the resolution No.97/96 dated 26..05..1996, the director board of the said bank had sanctioned an ordinary loan of Rs.15,000/- to the complainant, and the complainant and his wife jointly executed the security bond dated 12..06..1996 and complainant received the said amount for a period of one year. The agreed interest for the said loan was 18.5% & 3% of penal interest if defaulted for a period exceeding one year. The complainant made the first remittance only on 30..05..2001. Hence the complainant is liable to pay the interest at the agreed rate of 18.5% with 3% penal interest that is 21.5%. The complainant has made the remittance as shown below: Date : 14..08..1996 Amount Disbursed : Rs. 15,000/- Date Period Interest to be Amount remitted Balance remitted
14.8.97 365 days 2775.00 - 2775.00
30.5.01 1383 ” 14994.65 10000 4994.65 31.5.01 1 ” 5003.48 490 4513.48 08.6.01 8 ” 4584.16 510 4074.16 05.7.01 27 ” 4312.72 500 3812.72 07.8.01 33 ” 4103.00 500 3603.00 15.10.01 69 ” 4212.00 500 3712.00 28.3.02 5months 14 days 957+3712=4669 3125 1544.00
In the meantime as per circular No.35/01 dated 27..09..2001 the Registrar of Co-operative Society accorded sanction for one time settlement with 14% interest for recovery of the defaulted amount in pending loans of Co-operative Banks. But directions were given as per CB(1)/27812/01 dated 12..10..2001. The director board of the bank in its meeting held on 04..01..2002 had resolved as per resolution No.467/02 to implement the scheme of "one time settlement" in the bank. As per complainant's loan is concerned an amount of Rs.3,712/- was outstanding towards interest when complainant remitted Rs.500/- on 15..10..2001. No retrospective effect is granted for one time settlement. For getting the benefit of one time settlement complainant had not applied to the bank for the same after remitting at least 10% of the outstanding of the defaulted amount due to the bank. Opposite parties had levied charge at the rate of 14% interest for the said loan from 16..10..2001 to 28..03..2002. Complainant is liable to remit Rs. 4,669/- but remitted only Rs.3,125/-. Complainant has suppressed material facts. The Annual General Body of the bank held on 24..01..2004 had unanimously resolved to transfer the balance of net profit of the bank excluding statutory reserve funds for the period 1996 – 1997 to 2000 – 2001 to the building fund of the bank. Complainant being a share holder of the bank is not entitled to get interest for the share amount. The complainant is not entitled to get any amount from the opposite parties. Hence opposite parties prayed for dismissal of the complaint with cost. 3. The points that would arise for consideation are: Whether opposite parties have collected excess interest from the complainant? Whether complainant is entitled to get the benefits of 'one time settlement' for the amount remitted prior to the circular dated 27..09..2001? Whether complainant is entitled to get share price with dividend and interest thereon? Other Reliefs:
4. In support of the complaint, complainant has filed affidavit and marked Exts.P1 to P22. Complainant has been cross examined by opposite parties. In rebuttal, opposite parties have filed affidavit and marked Exts. D1 to D9 and opposite parties have been cross examined by the complainant.
5. Points (i) to (v): It has been the case of the complainant that complainant had availed a loan of Rs.15,000/- for agricultural purposes on 14..08..1996 from the opposite parties, that the said loan amount was repaid under 'one time settlement scheme' of the bank on 28..03..2002, that complainant was liable to remit interest at the rate of 18.5% that till 27..03..2001 complainant remitted an amount of Rs.12,500/- towards interest amount and balance interest amount would be Rs.3,098/- but opposite parties collected Rs.3,125/- from the complainant. It has also been the case of the complainant that as per the circular dated 27..09..2001 issued by Registrar of Co-operative Societies, 'one time settlement scheme' was proposed for closing defaulted loans upto 31..03..2001, that under the said scheme, avoiding the penal interest, and compound interest, opposite parties were directed to collect loan interest or market rate of interest whichever is less, that such facility was available to defaulted loan till 31..03..2002 and that since the complainant had remitted the entire amount on or before 28..03..2002, opposite parties informed him on 09..03..2002 that he would also get the benefit of 'one time settlement'. It has been resisted by the opposite parties by submitting that, opposite parties have sanctioned an ordinary loan of Rs.15,000/- to the complainant for a period of one year and complainant received the same on 14..08..1996, and that the interest rate agreed was 18.5% and 3% penal interest if defaulted for a period exceeding one year. Submission by the opposite parties was that complainant had made the first remittance on 30..05..2001, that complainant is liable to pay the interest at the agreed rate of 18.5% with 3% penal interest. Ext.D4 is the copy of the loan application submitted by the complainant. As per Ext.D4 the application is for ordinary loan, the amount demanded is for Rs.15,000/- date of application is 20..05..1996 and the loan period is for one year. Loan category is OL Loan, and the committee decision No.is 97/96. As per Ext.D8 security bond executed by the complainant the rate of interest mentioned is 18.5% and complainant agreed to repay the loan with interest within one year. It is pertinent to note that as per committee decision No. 97/96 dated 26..05..1996, it was decided to charge interest at the rate of 18.5% for a period of one year, while as per Ext.D1 opposite parties' loan register the interest rate mentioned is 18.5% + 3% = 21.5%. As per Ext. D8, complainant is liable to pay interest at the rate of 18.5%. Nowhere in Ext.D8, or in the committee decision, the penal interest is mentioned, while opposite parties have calculated interest at the rate of 21.5% as per Ext.D1. Submission by the opposite parties was that the rate of interest fixed by the Bank was agreed by both the parties, but no material on record to show that complainant has agreed with the rate of interest calculated by the bank. The onus of proving the liability of the complainant to pay penal interest would lie on the opposite parties. As per opposite parties statement of account the interest accrued as on 30..05..2001 was Rs.15,462/- calculated at the rate of 21.5% instead of 18.5% as seen in the bond executed by the complainant. Thereafter from 30..05..2001 to 15..10..2001 opposite parties have continued to levy interest at the rate of 21.5%. Claiming of interest at the rate of 21.5% contrary to the provisions in the bond/agreement, would amount to unfair trade practices. On perusal of Exts. P7 to P12, it would be evident that opposite parties have collected interest at the rate of 21.5%. From 16..10..2001 to 28..03..2002 opposite parties have levied interest at the rate of 14%. At this juncture, it would be worthwhile to mention the circular No. 35/2001 dated 27..09..2001 issued by the Office of the Registrar of Co-operative Societies Ext.P13 is the said circular, Registrar of Co-operative Societies issued the Ext.P13 circular under the scheme of 'one time settlement for closing the defaulted loans excluding penal interest and realising the interest in the documents, or then prevailing interest whichever is less, in the defaulted loans upto 31..03..2001. The said one time settlement facility was available upto 31..03..2002 and Primary Credit Societies and their related banks were directed to implement the scheme of one time settlement on or before 31..03..2002. A perusal of Ext.P13 would reveal that repayment in one go or in installment would be available under the scheme of one time settlement. Submission by the opposite parties was that the guidelines for implementing the scheme of one time settlement was issued by the Registrar on 12..10..2001 and that the director board of the opposite parties in its meeting held on 04..01..2002 resolved as per resolution No.467/2002 to implement the said scheme of one time settlement on the bank also and no retrospective effect granted for one time settlement. Opposite parties did not produce the copy of the said resolution nor did furnish the copy of the guidelines issued by the Registrar dated 12..10..2001. In his cross examination complainant deposed that he did know the date of resolution. Hence the onus of proving the date of resolution would lie on the opposite parties. Ext.P14 is the letter dated 09..03..2002 issued by the opposite parties to the complainant informing him of the benefits of the said one time settlement. As per Ext.P14 (A) circular No.6/02 dated 22..03..2002 the interest rate is seen revised. That is, for advance upto Rs.50,000/- the maximum rate of interest to be charged is at the rate of Rs.13%. Ongoing through the affidavits, deposition, and documents furnished by the complainant and opposite parties. We are of the considered opinion, opposite parties, instead of charging rate of interest at the rate of 18.5%, charged at the rate of 21.5% upto 15..10..2001 and from 16..10..2001 to the date of repayment of the said loan opposite parties had charged 14%. Hence we conclude opposite parties have collected excess rate of interest from the complainant. This would definitely amount to unfair trade practice and deficiency in service on the part of opposite parties. Taking into consideration of the totality of the circumstances we think it will be expedient and justice will be well met if opposite parties is directed to charge 18.5% from the complainant from 14..08..1996 to 15..10..2001 and 14% interest thereafter till the repayment of the said loan and return the excess interest amount collected at the rate of 3% to the complainant. The next point requiring consideration is whether complainant is entitled to get share price with dividend and interest thereon. Submission by the complainant is that in connection with the said loan complainant has deposited 5% of the loan in share. As per Ext.P6 receipt dated 14..08..1996, complainant had deposited Rs.740/- in share in addition to the deposit of Rs.10/-. Submission by the opposite parties is that complainant can collect the said share amount on production of proper receipt for the same. As per Ext.P1 receipt dated 28..03.2002 complainant has remitted a sum of Rs.18,180/- to opposite parties and closed the said loan. Since the said loan stands closed, complainant is entitled for refund of the share price with profit if any thereon. Submission by the opposite parties was such that as per Bye law of the bank, the General Body of the Bank is the authority to decide regarding the profit of the bank and that on 24..01..2004, the General Body of the Bank unanimously resolved to transfer the balance of net profit of the bank excluding statutory reserve funds for the period 1996 – 97 to 2000 – 2001 to the building fund of the bank. In his cross examination complainant deposed that complainant was not present at the General Body Meeting held on 24..01..2004 and, but present at the General Body Meeting held in the year 2007, and that he was not aware of the decision taken by the General Body held on 24..01..2004. Opposite parties did not produce the copy of minutes book nor did complainant furnish any documents to show the share profit. In view of the above, we find complainant is entitled to get share price with profit, if any, as the above said loan was closed on 28..03..2002.
In the result, complaint is allowed. Opposite parties shall jointly and severally refund the excess interest collected from the complainant at the rate of 3% on the loan amount of Rs.15,000/- from 14..08..1996 to 15..10..2001 to the complainant, opposite parties shall also pay to the complainant the share price with profit if any. Opposite parties shall also pay Rs.1,000/- (Rupees One thousand only) towards compensation and cost.
A copy of this order as per the statutory requirements be forwarded to the parties free of charge and thereafter the file be consigned to the record room.
Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the open Forum, this the 30th day of December, 2008.
G. SIVAPRASAD, PRESIDENT. BEENA KUMARI .A : MEMBER
S.K. SREELA : MEMBER
ad.
O.P.No.87/2003 APPENDIX I. C omplainant's witness: PW1 : Gopinathan II. Complainant's documents: P1 : Receipt dated 28.03.2002 for Rs.18180 issued by 2nd opposite party. P2(a) : " dated 30..03..2002 for Rs.50/- " P2(b) : Acknowledgment card dated 16.05.2002 P3 : Copy of letter dated 13.05.2002 issued by complainant to opp. Parties. P4 : Application form for agriculture loan P5 : Copy of agreement deed dated 12.06.1996 P6 : Receipt No.18642 dt. 14.07.1996 for Rs.759/- P7 : Receipt dated 30.05.2001 for Rs.10020 P8 : " dated 31.05.2001 for Rs. 490/- P9 : " dated 08.06.2001 for Rs.510/- P10 : " dated 05.07.2001 for Rs.500/- P11 : " dated 07.08.2001 for Rs.500/- P12 : " dated 15.10.2001 for Rs. 500/- P13 : Circular No.35/01 dated 27.09.2001 of C.B(1)/ 27812/2001 from Office of the Registrar of Co- operative Societies,Tvpm. P14 : Letter No.5053 dt. 09.03.2002 issued to the complainant by opp. Parties. P14(a) : Circular No.6/2002 dated 22.03.2002 of CB(2)/ 30753/2001 from Office of the Registrar of Co- operative Societies, Tvpm. P15 : Malayala Manorama Daily Newspaper cutting dated 26.02.2003 P16 : Circular No.12/2003 dt.27.02.2003 of CB(1)/ 27812/01 from the Office of the Registrar of Co- operative Societies,Tvpm. P17 : Letter No.CB(1)/18055/03 dated 17.06.2003 from the Office of the Registrar of Co-operative Societies, Tvpm. P18 : Letter No.CRP(2)/10082/02/Ldis. dated 29.03.2003 from the Office of the Joint Registrar (General) Co- operative Societies,Tvpm. P19(a) : Letter dated 14.04.2003 issued to the 1st opposite party by the complainant. P20 : Photocopy of receipt dated 03.04.2003 for Rs.15203/- P21 : Letter No.CR3/A/2709/03 dated 13.08.2003 subjected to non-receipt of acknowledgment from the Manager, Customer Care Centre, Deptt. Of Post,Tvpm. P22 : Phoptocopy of minutes ref.No.467/01 dated 04.01.2002 III. Opposite parties' witness: DW1 : Prafullachandran IV. Opposite parties' documents:
D1 : Ledger copy of loan No.OC/16/96-97 dt.14.08.96 D2 : Letter No.KBM-589/2003/Ldis dated 27.08.2003 from the Asst. Registrar (General), Co-operative Society, Chirayinkil. D3 : Letter dated 13.05.2002 issued to the opposite parties by the complainant. D4 : Copy of application for loan for Rs.15,000/- D5 : Photocopy of ledger of loan No.OC/16/96-97 dt.14.08.96 D6 : Photocopy of Agreement Deed dated 12.06.1996 D7 : Copy of affidavit submitted by opp. Parties to the President, CDRF dated 22..03..2004. D8 : Attested copy of security bond signed by the complainant D9 : Letter No.CRP-(2)/3630/08 dated 5.8.08 from the Joint Registrar (General), Office of the Co-operative Society of Joint Registrar, Tvpm.
PRESIDENT
......................Smt. Beena Kumari. A
......................Smt. S.K.Sreela
......................Sri G. Sivaprasad | | 
