Date of Filing :13.01.2022
Date of Disposal :31.07.2024
BEFORE THE KARNATAKA STATE CONSUMER DISPUTES REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)
DATED:31.07.2024
PRESENT
Mr K B. SANGANNANAVAR: JUDICIAL MEMBER
(DIST. & SESSIONS JUDGE (R)
Mrs DIVYASHREE M: LADY MEMBER
APPEAL No.129/2022
The Manager
Bank of Baroda
(e-Dena Bank)
Chennappa Extension
B.H.Main Road
Nelamangala-562 123
Bangalore Rural District
(By Mr T.P Muthanna, Advocate) Appellant
-Versus-
Sri Preetham J.B
S/o Sri J.B.Basavaraj
No.7176, 2nd Floor
Opp. HDFC Bank
B.H Main Road
Nelamangala-562 123
Bangalore Rural District Respondent
(In person)
-:ORDER:-
Mr. K B. SANGANNANAVAR: JUDICAL MEMBER:
1. This is an Appeal filed under Section 41 of Consumer Protection Act, 2019 by OP aggrieved by the Order dated 14.09.2021 passed in Consumer Complaint No.08/2020 on the file of I Additional and Bengaluru Rural District Consumer Disputes Redressal Commission, Bengaluru(for short, the District Commission).
2. The Parties to this Appeal will be referred to their rank assigned to them by the District Commission.
3. The Commission examined the impugned order, grounds of Appeal, Appeal papers and heard the learned counsels. Now the point that arises for consideration of this Commission would be:
Whether impugned order dated 14.09.2021 passed in CC No.08/2020 does call any interference of this Commission for the grounds set out in the Appeal Memorandum?
4. At the very outset, it is appropriate to make mention as to the prayer sought by the Complainant in his complaint. The complainant has sought for direction to be issued against OP/Banker to credit the entire loan amount sanctioned and to pay Rs.4 lakhs as compensation for causing him mental agony and to waive of interest on the loan amount disbursed to him as he has to pay the amount obtained from the private person by paying heavy interest, since OP Banker not reimbursed the payment made by him. In view of the relief sought in the complaint, now, question may come, whether such relief could be granted in favour of complainant, when his son has already completed his education at Hamburg University of Technology, Hamburg, Germany?.
5. It is not in dispute that the complainant is an Engineering Graduate in Mechanical branch had joined Hamburg University of Technology, Hamburg, Germany, intended to pursue his higher studies MS on Mechanical Engineering and Management and in this regard, he had approached OP bank, during 2017 for advance of an educational loan of amount of Rs.18 lakhs. It is not in dispute and it is come in enquiry held by the District Commission that he had offered immovable property of his parents as collateral security by deposit of title deeds to avail aforesaid loan. It has come in an enquiry, properties of parents of complainant have been mortgaged in favour of OP Bank and they were been evaluated worth of Rs.42,95,000/- and by accepting the mortgaged property on 29.11.2017, OP had sanctioned educational loan amount of Rs.14 lakhs. Since Complainant was in Germany, OP called his father to the office of the Sub-Registrar to get the property intended to be secured for the loan to be registered. However, OP bank insisted him to execute and sign the documents in their presence, as such, he came over to India by the spending Rs.40,000/- towards air ticket charges. When he approached OP for release of loan amount, they refused to do so, since, he was badly in need of money to clear the liabilities made for first and second semester studies and to pursue 3rd and 4th semesters course through his father privately made an arrangement of the money to an extent of Rs.9 lakhs paying high interest and it is stated that OP had rendered deficiency of service despite loan advanced accepting the mortgaged property.
It is not in dispute that OP had released Rs.6,24,000/- towards the education loan, after following due process and guidelines laid down by the Bank. According to Banker, as against the request for sanction of Rs.18 lakhs, OP had sanctioned Rs.14 lakhs on 18.09.2017 and out of Rs.14 lakhs, Rs.6,24,000/- was released and when complainant had made his own arrangements to an extent of Rs.9 lakh to pursue his studies and had completed the course, question of release of remaining amount does not arise at all on the ground that complainant himself has made arrangements by paying higher interest, which was wrongly considered by District Commission has some considerable force. But facts remain found from enquiry, since the Dena Bank and Bank of Baroda being members of the BCSBI are supposed to follow the course did not convey along with sanctioned letter on 29.11.2017. It is to be noted herein that the terms and conditions of the loan are communicated on 15.12.2018 only after disbursement of Rs.7 lakh. In our view, educational loan was advanced after mortgaging immovable property worth Rs.42 lakhs, yet OP Bank failed to consider the dire need of the money at an appropriate stage in order to discharge the liabilities towards the education of the complainant for which he had availed the loan is nothing but rendering deficiency in service on the part of OP bank as submitted has some considerable force from which OP bank cannot be exonerated from this complaint, considering the fact as found from enquiry that amount was not disbursed while the complainant was still prosecuting the educational at Germany. In such circumstances, as rightly submitted by complainant that through his father he was forced to make his own arrangements by availing loan from private person on payment of higher interest. As already stated above the properties mortgaged are the property belongs to his parents which are still in the name of OP bank, but facts remain Complainant has already completed his MS from TUHH Technological University at Hamburg Germany.
6. It is not in dispute that the course duration is 2 years and the loan is repayable in 10 years with moratorium period for 3 years. However, the District Commission has committed grave error in directing OP2 to release the amount to the extent of documents furnished by the Complainant, which in our view is not correct, in view of completion of his education and such direction could not be issued by Consumer Commission to discharge the liabilities owe to the private persons from whom the loan was availed while pursuing the education, but facts remain, banker had failed to act upon at an appropriate stage has to be amenable for which some amount of compensation has to be paid. In such view of the matter, from the materials on record, we are of the view that the impugned order needs to be modified and we hold, OP is liable to pay Rs.1,50,000/- as damages and compensation for the mental agony and hardship caused and Rs.20,000/- towards litigation expenses, considering the fact of withholding of Rs.7,76,000/-, while complainant was pursuing the education in Germany. Had OP released Rs.7,76,000/- at an appropriate stage, question of making arrangement of Rs.9 lakh paying higher interest to the private persons could not have been arisen to the complainant and in such view of the matter, we concur the findings recorded by the District Commission in awarding compensation and cost of litigation but awarding at Rs.2 lakh has to be held, on higher side which needs modification and in so far awarding cost at Rs.20,000/- would be said justified.
In the above such conclusion, Commission proceed to allow the Appeal in part in the following terms.
Appeal is allowed in part. Consequently, modified the impugned order dated 14.09.2021 passed in Consumer Complaint No.08/2020 on the file of I Additional and Bengaluru Rural District Consumer Disputes Redressal Commission, Bengaluru and directed OP to pay a sum of Rs.1,50,000/- to the Complainant towards damages for causing physical and mental agony and Rs.20,000/- towards costs of litigation within 60 days and on failure to comply with the order shall pay interest at the rate of 6% p.a from the date of complaint till realisation.
Amount in deposit is directed to be transfer to the District Forum for the needful.
Send copy of this Order to the District Commission and the parties concerned.
Lady Member Judicial Member
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