Tamil Nadu

South Chennai

CC/373/2014

M/s.Priya Agencies - Complainant(s)

Versus

Standard Chartered Bank - Opp.Party(s)

M/s.Anbarasan

04 Dec 2017

ORDER

                                                                        Date of Filing :   18.08.2014

                                                                        Date of Order :   04.12.2017

DISTRICT CONSUMER DISPUTE REDRESSAL FORUM, CHENNAI (SOUTH)

     2^nd Floor, Frazer Bridge Road, V.O.C. Nagar, Park Town, Chennai-3

PRESENT: THIRU. M.MONY, B.Sc., L.L.B. M.L.,                     : PRESIDENT            

                  TMT. K.AMALA, M.A. L.L.B.,                                 : MEMBER I

             DR. T.PAUL RAJASEKARAN, M.A ,D.Min.PGDHRDI, AIII,BCS : MEMBER II

 

C.C.NO.373/2014

MONDAY THIS 4^TH DAY OF DECEMBER 2017

M/s. Priya Agencies,

Rep. by its Proprietor,

S.Amirtha Shree,

New No.96, Old No.42,

Paper Mills Road,

Perambur, Chennai 600 011.                     Complainant

 

                                         Vs 

 

1.  Standard Chartered Bank,

Rep. by its Principal Nodal Officer,

No.1 Haddows Road,

Grindlays Garden,

Nungambakkam,

Chennai 600 005.

 

2. The Banking Ombudsman,

Reserve Bank of India Building

(II Floor), Fort Glacis,

Post Box No.40,

16, Rajaji Salai,

Chennai 600 001.                                      Opposite parties.

 

Counsel for Complainant           :    M/s. P.Anbarasan & others          

Counsel for opposite parties      :    M/s. R & P Partners.   

ORDER

THIRU. M. MONY, PRESIDENT

This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act 1986 seeking direction to pay  a sum of Rs.4,57,640/- debited by the first opposite party from the account of the complainant and also to pay a sum of Rs.10,00,000/- towards compensation for mental and to pay cost of the compliant.

1. The averment of the complaint in brief are as follows:

         The complainant submit that  the Manager of the 1^st opposite party wanted the complainant to close the account with Allahabad Bank and offered to provide Rs.5 cores loan.   But the complainant also submitted applications for the grant of loan of Rs.5 cores.   But the opposite party letter dated 3.10.2012 has granted loan of only Rs.1  core towards over draft facilities.  since the loan sanctioned by the 1^st opposite party was not to the satisfaction of the complainant and declined the loan and the continued its account with Allahabad Bank.   While so the opposite party has debited  a sum of Rs. 5,70,000/- from the account of the complainant on 29.9.2012.  On enquiry with the opposite party the complainant was informed that a sum of Rs.1,12,360/- has been debited towards processing fee.   The opposite party refused to inform how they had debited the other sum of Rs.4,57,640/- in the account of the complainant.    On the other hand the opposite party has refused a sum of Rs.1,12,360/- debited towards the processing fee on 27.2.2014.  Hence the complainant was constrained to issue legal notice 21.11.2013.   But there was no reply from the opposite party bank.    As such the act of  the opposite parties amounts to deficiency in service which caused mental agony and hardship to the complainant.  Hence this complaint is filed.

2.    The brief averments in the Written Version filed by the  opposite parties is  as follows:

      The  opposite parties deny each and every allegations except those that are specifically admitted herein.   The opposite parties submit that  the opposite party is Banking Company which accepts deposits from the customers and also offers credit facilities such as housing loan, personal loan, credit card over draft facility, business installment loan etc to the customer.  The complainant prior to approaching the opposite party was enjoying the credit facility from Allahabad bank.    The credit facility extended by the opposite party the complainant during the month of October 2012.   The credit facility of Rupees one core had been sanctioned to the complainant to meet its requirement as per letter dated 3.10.2012 of the opposite party.   But the complainant refused to accept the offer.  On receipt of the application from the complainant the processing fee paid by the complainant were adjusted  thereby a sum of Rs.1,12,360/- was debited from the account of the complainant.  Subsequently the said amount was refused  on 27.2.2013 and the same had been communicated to the complainant.    Further the opposite parties submit that  the opposite party undertakes certain verification prior to the sanction of loans.  The loan processing fee paid by the customer are adjusted  towards certain minimum costs incurred by the opposite party for completion of documentation and verification prior to sanction of loan.   The opposite parties also state that  despite of applicability of the fee as indicated above, the processing fee related to the complainant’s account had been reversed by the opposite party.      Hence there is no deficiency in service on the part of the opposite party and the complaint is liable to be dismissed.

3.     In order to prove the averments of the complaint, the complainant has filed proof affidavit as her evidence and documents Ex.A1 to Ex.A7 marked.  Proof affidavit of opposite party filed and Ex.B1 and Ex.B3 marked on the side of the  opposite parties.

4.   The points for the consideration is: 

Whether the complainant is entitled to a sum of Rs.4,57,640/- debited by the first opposite party from the account of the complainant as prayed for?

 

Whether the complainant is entitled to a sum of Rs.10,00,000/- towards compensation for mental agony with cost as prayed ?

 

 

5.  POINTS 1 & 2 :

         Heard both sides.  The learned counsel for the complainant  contended that the Manager of the 1^st opposite party wanted the complainant to close the account with Allahabad Bank and offered to provide Rs.5 cores loan.   But the complainant also submitted applications for the grant of loan of Rs.5 cores.   But the opposite party letter dated 3.10.2012 has granted loan of only Rs.1  core towards over draft facilities as per Ex.A2.  since the loan sanctioned by the 1^st opposite party was not to the satisfaction of the complainant and declined the loan and the continued its account with Allahabad Bank as per Ex.A2.   While so the opposite party has debited  a sum of Rs. 5,70,000/- from the account of the complainant on 29.9.2012 as per Ex.A2.  On enquiry with the opposite party the complainant was informed that a sum of Rs.1,12,360/- has been debited towards processing fee.   The opposite party refused to inform how they had debited the other sum of Rs.4,57,640/- in the account of the complainant.    On the other hand the opposite party has refused a sum of Rs.1,12,360/- debited towards the processing fee on 27.2.2014.  Hence the complainant was constrained to issue legal notice 21.11.2013 ie. Ex.A3 and filed this case.

6.     The contention of the opposite parties is that the opposite party is Banking Company which accepts deposits from the customers and also offers credit facilities such as housing loan, personal loan, credit card over draft facility, business installment loan etc to the customer.  The complainant prior to approaching the opposite party was enjoying the credit facility from Allahabad bank.    The credit facility extended by the opposite party the complainant during the month of October 2012.   The credit facility of Rupees one core had been sanctioned to the complainant to meet its requirement as per letter dated 3.10.2012 of the opposite party.   But the complainant refused to accept the offer.  On receipt of the application from the complainant the processing fee paid by the complainant were adjusted  thereby a sum of Rs.1,12,360/- was debited from the account of the complainant.  Subsequently the said amount was refused  on 27.2.2013 and the same had been communicated to the complainant.    The opposite party undertakes the certain verification prior to sanction the loans.    The loan processing fees paid by the customers are adjusted towards certain minimum costs incurred by the opposite parties for completion of documentation and verification prior to sanction of loan.   But in this case admittedly the complainant requested for a sum of Rs.10 cores by way of loan.  But the opposite party sanctioned only Rs.1 core which was declined by the complainant,  at this stage sanctioned itself, before sanctioning the allegation of the documentation and the other expenditure incurred by the opposite parties cannot be accepted; because no documentation never arise at this stage.  Only verification of the document alone arise.  It is also admitted that the opposite party has not paid the amount claim.    Considering the facts and circumstances of the case this Forum is of the considered view that the opposite parties  1 and 2 are jointly and severally liable to pay a sum of Rs.4,57,640/- with interest at the rate of 9% p.a. from 27.2.2014 to till the date of this order i.e. 4.12.2017 and shall pay compensation of Rs.25,000/- towards mental agony with cost of Rs.5,000/-  and points are answered accordingly.

In the result the complaint is allowed in part.  The opposite parties 1 and 2 are jointly and severally liable to pay a sum of Rs.4,57,640/- (Rupees Four lakhs Fifty seven thousand six hundred and forty only) with interest at the rate of 9% p.a. from 27.2.2014 to till the date of this order i.e. 4.12.2017 and shall pay compensation of Rs.25,000/- (Rupees Twenty Five thousand only) towards mental agony with cost of Rs.5,000/-  (Rupees Five thousand only) to the complainant.  

The above  amounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a to till the date of payment.

Dictated by the President to the Assistant, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 4^th day  of  December  2017.  

 

MEMBER-I                        MEMBER-II                             PRESIDENT.

Complainant’s side documents:

Ex.A1 12.7.2012 to

            24.5.2013  - Copy of statement of account.

Ex.A2 3.10.2012  - Copy of facility letter of the 1^st opp. party.

Ex.A3 21.11.2013         - Copy of notice.

Ex.A4                 - Copy of complainants complaint to Ombudsman, RBI.

Ex.A5  3.4.2016    - Copy of 1^st opposite party letter.

Ex.A6 12.5.2014  - copy of order of the Banking Ombudsman.

Ex.A7  13.2.2014  - Copy of first opp. party statement showing refund of

                               Processing fees of Rs.1,12,360/-

Opposite parties’ side document:    

Ex.B1- 1.10.2012 - Copy of sanction letter issued by the opp. party.

 

Ex.B2- 17.2.2014 &

           1.3.32014  - Copy of complaint.

 

Ex.B3  21.11.2013 and

           3.2.2014    - Copy of legal notice.

 

 

 

MEMBER-I                        MEMBER-II                             PRESIDENT.