No. 6/02.11.2010.

HON’BLE JUSTICE SRI PRABIR KUMAR SAMANTA, PRESIDENT.

Appellant through Mr. Barun Prasad, the Ld. Advocate along with Mr. Arghya Acharya, the Ld. Advocate and Respondent through Mr. Pradip Dutta, the Ld. Advocate are present.

This appeal is by the Creditor – Bank against  the judgement and order dated 14.01.2010 passed by the concerned Forum by allowing the complaint case ex-parte against the aforesaid Creditor – Bank.  The Creditor – Bank in spite of service of notice upon it did not turn up to contest the complaint case.  The complaint case was thus heard ex-parte against the Creditor – Bank.

The Respondent – Complainant entered into an agreement for educational loan with the Creditor – Bank for the purpose of financing his study at Asansol Engineering College at Kanayapur, Asansol for a period of four years.  A sum of Rs.1,80,000/- was given to the Complainant – Respondent by way of educational loan @ 13.76% interest with quarterly rests.  In terms of the said loan the amount taken on loan was to be repaid in sixty monthly installments @ Rs.4,167/- commencing from one year after completion of study or one month from the date of getting employment whichever is earlier.  An LIC Policy for the assured sum of Rs.2,00,000/- was deposited and by deposit of title deeds of the property of the father of the Complainant with the Bank an equitable mortgage was created for the same for securing repayment of the said loan.

The said agreement for educational loan nowhere stipulated that interest would be charged on simple basis during the repayment holiday/moratorium period.   It is not in dispute that the Complainant – Respondent in terms of the aforesaid educational loan has paid all sixty monthly installments @ Rs.4,167/- commencing from the date on which the said monthly installments had fallen due.  In spite of payment of all such monthly installments the collateral securities that were furnished by the Complainant – Respondent for securing repayment of the loan were not returned to the Complainant.  Hence the above complaint case as the Creditor – Bank failed to discharge its obligation to return those collateral securities upon receipt of repayment of all sixty monthly installments as per the terms of the said educational loan.  There was thus, deficiency in service on the part of the O.P. – Appellant – Bank. 

The complaint case has accordingly been disposed of by directing the Creditor – Bank to release all collateral securities being the Life Insurance Policy of the Complainant for an assured sum of Rs.2,00,000/- and the title deed of the property of the father of the Complainant which was furnished for creating equitable mortgage to the Complainant within 40 days from the date of the order.

In this appeal it has been contended that as per usual practice of the Creditor – Bank the Complainant – Respondent was under legal obligation to make payment of simple interest on the amount of loan during the period of repayment holiday/moratorium period.  Most interestingly the aforesaid loan was granted to the Complainant – Respondent by executing the deed of agreement dated 20.10.1998 executed by and between the Complainant – Respondent and the Bank with a guarantor to the said loan being a party to the said agreement.  Nowhere in the said agreement it has been stipulated that simple interest would be charged on the principle amount of loan during repayment holiday/moratorium period.  From the letter dated 23.10.1998 issued by the Creditor – Bank to the Complainant – Respondent wherein terms and conditions of granting aforesaid educational loan of Rs.1,80,000/- to the Complainant – Respondent have been incorporated it also does not appear that simple interest would be payable on the principal during repayment holiday/moratorium period.  On the contrary repayment schedule as stipulated therein merely provided that loan was to be repaid in sixty monthly installments @ Rs.4,167/- per month commencing from one year after completion of study or one month from the date of getting employment whichever is earlier.

In the absence of any specific term in the said letter dated 23.10.1998 or in the aforesaid agreement dated 20.10.1998 for payment of simple interest during moratorium period we do not find any reason to hold that the Complainant – Respondent was further liable to pay any amount by way of simple interest on the aforesaid amount of loan of Rs.1,80,000/- during repayment holiday/moratorium period.  Therefore, we are unable to hold that the amount as claimed by the Creditor – Bank in its letters dated 14.07.2008 and 19.01.2009 addressed to the Complainant – Respondent and his Ld. Advocate respectively was payable by the Complainant – Respondent to the Creditor – Bank. 

For all the reasons as aforesaid we do not find any sufficient reason to interfere with the impugned order as aforesaid.  The appeal is accordingly dismissed.  However, we observe that if for any other reason the Creditor – Bank is entitled to recover the said amount as claimed in its aforesaid letters, of if it is otherwise recoverable by it from the Complainant – Respondent in accordance with the provision of law then it would be at liberty to approach the appropriate forum for recovery of the same.  With this observation the appeal is dismissed.