Karnataka

Chitradurga

CC/242/2018

S.R.Basavaraj S/o Ramachandra Reddy - Complainant(s)

Versus

Star Business Consultancy - Opp.Party(s)

Sri K.P.Thippeswamy

15 Mar 2019

ORDER

COMPLAINT FILED ON:27/11/2018

DISPOSED      ON:15/03/2019

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHITRADURGA.

CC.NO:242/2018

 

DATED: 15^th MARCH 2019

PRESENT :-     SRI.T.N.SREENIVASAIAH :   PRESIDENT                                     B.A., LL.B.,

                        SMT. JYOTHI RADHESH JEMBAGI

BSc.,MBA., DHA.,                LADY MEMBER

 

……COMPLAINANT/S	S.R.Basavaraj, S/o Ramachandra Reddy, STS Agencies, Transport Service, Canara Nivasa, Income Tax Office Road, Taralabalu Nagara, Kadalebatti, Chitradurg-577 501. Karnataka State. Mb.No.94481300751.   (Rep by Sri.K.P. Thippeswamy, Advocate)
V/S
…..OPPOSITE PARTY	Star Business Consultancy, Office-B-17-18, B-Block, IInd Floor, S.K.Plaza, Pur Road,  Bhilwara-311001, Rajasthan State.   (ex-parte)

ORDER

SRI. T.N. SREENIVASAIAH:   PRESIDENT

The above complaint has been filed by the complainant u/Sec.12 of the C.P. Act, 1986 for the relief to direct the OP to pay Rs.1,07,500/- with interest at the rate of 24% p.a from the date of payment i.e., 15.05.2018 till realization, Rs.25,000/- towards mental agony, Rs.10,000/- towards costs and also to return the original document to the complainant.

2.      The brief facts of the case of the above complainant are that, the complainant approached the OP through phone for a loan of Rs.30,00,000/- to improve his transport business.  The OP promised to arrange loan of Rs.29.75 lakhs and asked to send the relevant documents.  Accordingly, the complainant sent the relevant documents to OP through online on 01.05.2018.  After satisfaction and accepted the documents, the OP informed the complainant to send the processing charges of Rs.2,500/- on 02.05.2018.  The same was sent by the complainant and acknowledged by the OP on 03.05.2018 through letter in e-mail.  The OP once again informed the complainant through a letter on 08.05.2018 stating to send Rs.1,05,000/- towards consultancy charges with a note that, “further, we would like to inform you that in case the company fails to provide you with loan the consultancy charges thus charged by the company would be refunded back”.  The complainant sent the amount of Rs.20,000/- on 09.05.2018, Rs.20,000/- on 14.05.2018 and Rs.65,000/- on 15.05.2018, in all a sum of Rs.1,05,000/- through Bank to the account of OP, the same was acknowledged by the OP through its letter dated 15.05.2018.  Thereafter, the OP send loan application form to the complainant by courier service and asked to send the filled loan application to the OP.  Then the complainant applied the loan of Rs.29.75 lakhs on 24.05.2018 and send the same by courier service to the OP and thereafter asked to send the relevant original documents.  The complainant send 24 original documents to OP by courier service and also furnished one surety by name Sri.G. Harish S/o G.R. Gururaja Rao of Chitradurga and send the same to OP by courier service on 12.06.2018.  The OP asked the complainant to furnish one Government official guarantor or Bank solvency, the complainant was unable to furnish Government official guarantor or bank solvency.  The OP did not inform the complainant before apply the loan and before payment of processing charges and consulting charges.  The same was informed only after receiving the above said amount from the complainant, otherwise, the complainant would have not applied for the loan.  The same was informed to OP on 03.07.2018 and requested to return Rs.1,05,000/- and Rs.2,500/- through e-mail.  The Advocate for OP Sri. Mahendra Upadhyay informed through letter dated 24.07.2018 stating that the company will not process the loan and the loan is cancelled and refunding back Rs.84,000/- by cheque dated 21.08.2018 issued in favour of complainant drawn on Bandhan Bank, Udaipur.  The said cheque was submitted to the Merchants Souharda Sahakara Bank, Chitradurga for collection on 21.08.2018, the said Bank issued an endorsement stating that “funds insufficient”.  The same was intimated to OP through phone by the complainant.  Thereafter, the OP sent a letter on 24.09.2018 apologizes for the inconvenience caused to the complainant and informed that the amount will be transferred to his account till 03.10.2018.  The complainant informed to OP on 03.10.2018 that no amount was transferred to his account.  The OP once again apologizes the complainant for the delay and inconvenience caused to the complainant and stated that amount will be transferred to the account of complainant on 15.10.2018 as final date.  But, the OP has not refunded the consultancy charges of Rs.1,05,000/- and processing charges of Rs.2,500/-, in all a sum of Rs.1,07,500/- to the complainant, which is oppose to law.  For the act of the OP, the complainant has suffered wrongful loss and OP gets wrongful gain without providing any service to the complainant as promised, which is a deficiency of service.  The limitation starts on 15.10.2018 when the amount was not refunded as promised and the cause of action arose when the complainant was applied for loan in Chitradurga through online, which is within the jurisdiction of this Forum and hence, prayed for allow the complaint.

 3.     This Forum has issued notice to OP, the same returned with a shara that, the company closed.  Hence, placed ex-parte.

      4. Complainant himself has examined as PW-1 by filing affidavit evidence and the documents Ex.A-1 to A-15 were got marked and closed his side.

 

5.      Arguments heard.

6.      Now the points that arise for our consideration for decision of above complaints are that;

(1)  Whether the complainant proves that the OP has committed deficiency of service in sanctioning the loan and entitled for the reliefs as prayed for in the above complaint?

              (3) What order?

 

         7.       Our findings on the above points are as follows:-

                    Point No.1:- Partly in Affirmative. 

Point No.2:- As per final order.

REASONS

8.      Point No.1:- There is no dispute that, the complainant is running transport service having Canters under the name and style as STS Agencies in Chitradurga City.  The OP is a service providers to arrange loans from the financiers for any purpose.  The same was published and revealed on online in the internet in APP-BANK BAZAR and the same was appeared on the complainant’s e-mail.  The complainant contacted OP through phone for arranging the loan for Rs.30,00,000/- to improve his transport business.  The OP promised to arrange loan of Rs.29.75 lakhs.  Accordingly, the complainant has sent relevant documents to the OP on 02.05.2018   After satisfaction and accepted the documents, the OP informed the complainant to send the processing charges of Rs.2,500/- on 02.05.2018.  The same was sent by the complainant and acknowledged by the OP on 03.05.2018 through letter in e-mail.  The OP once again informed the complainant through a letter on 08.05.2018 stating to send Rs.1,05,000/- towards consultancy charges with a note that, “further, we would like to inform you that in case the company fails to provide you with loan the consultancy charges thus charged by the company would be refunded back”.  The complainant sent the amount of Rs.20,000/- on 09.05.2018, Rs.20,000/- on 14.05.2018 and Rs.65,000/- on 15.05.2018 respectively, in all a sum of Rs.1,05,000/- through Bank to the account of OP, the same was acknowledged by the OP through its letter dated 15.05.2018.  The OP send loan application form to the complainant.   Then the complainant applied the loan of Rs.29.75 lakhs on 24.05.2018 and send the same by courier service to the OP.  After receiving the relevant documents, the OP asked the complainant to furnish surety, for that the complainant furnished surety by name Sri.G. Harish S/o G.R. Gururaja Rao of Chitradurga and send the same to OP by courier service on 12.06.2018.  Further the OP asked the complainant to furnish one Government official guarantor or Bank solvency, the complainant was unable to furnish Government official guarantor or bank solvency.  The OP did not inform the complainant before apply the loan and before payment of processing charges and consulting charges.  The same was informed only after receiving the above said amount from the complainant, otherwise, the complainant would have not applied for the loan.  The same was informed to OP on 03.07.2018 and requested to return Rs.1,05,000/- and Rs.2,500/- through e-mail.  The Advocate for OP Sri. Mahendra Upadhyay informed through letter dated 24.07.2018 stating that the company will not process the loan and the loan is cancelled and refunding back Rs.84,000/- by cheque dated 21.08.2018 issued in favour of complainant drawn on Bandhan Bank, Udaipur, the said cheque was submitted to the Merchants Souharda Sahakara Bank, Chitradurga for collection on 21.08.2018, the said Bank issued an endorsement stating that “funds insufficient”.  The same was intimated to OP through phone by the complainant.  Thereafter, the OP sent a letter on 24.09.2018 apologizes for the inconvenience caused to the complainant and informed that the amount will be transferred to his account till 03.10.2018.  The complainant informed to OP on 03.10.2018 that no amount was transferred to his account.  The OP once again apologizes the complainant for the delay and inconvenience caused to the complainant and stated that amount will be transferred to the account of complainant on 15.10.2018 as final date.  But, the OP has not refunded the consultancy charges of Rs.1,05,000/- and processing charges of Rs.2,500/-, in all a sum of Rs.1,07,500/- to the complainant, which is oppose to law. 

9.      We have gone through the entire documents filed by the complainant, those are marked as Ex.A-1 to A-15, which clearly shows that the OP has received an amount of Rs.2,500/- towards service charges and Rs.1,05,000/- towards solvency on different dates and also the OP has sent a cheque for Rs.84,000/- to the complainant towards refund of the amount, the same has been marked as Ex.A-11 and the return memo has been marked as Ex.A-12, wherein it has been mentioned that, the funds insufficient in the account of the OP.  Further Ex.A-13 to 15 are the apology letters sent by the OP for the inconvenience.  Thereafter also, the OP has not return the amount received from the complainant towards processing charges and the solvency and the same amounts to deficiency of service on the part of OP.  Accordingly, this Point No.1 is held as partly affirmative to the complainant.          

            10.     Point No.3:- As discussed on the above point and for the reasons stated therein we pass the following:-

ORDER

The complaint filed by the complainant U/s 12 of CP Act 1986 is hereby partly allowed.

It is ordered that, the OP is hereby directed to return all the original documents to the complainant and further directed to pay a sum of Rs.1,07,500/- to the complainant along with interest at the rate of 9% p.a from 15.05.2018 till realization. 

It is further ordered that, the OP is hereby directed to pay Rs.10,000/- towards mental agony and Rs.5,000/- towards costs of this proceedings to the complainant.  

It is further ordered that, the OP is hereby directed to comply the above order within 30 days from the date of this order.

(This order is made with the consent of Member after the correction of the draft on 15/03/2019 and it is pronounced in the open Court after our signatures)         

                                     

MEMBER                                                   PRESIDENT

-:ANNEXURES:-

Witnesses examined on behalf of Complainant:

PW-1:  Complainant by way of affidavit evidence.

Witnesses examined on behalf of OP:

-Nil-

Documents marked on behalf of Complainant:

01	Ex-A-1:-	Copies of the 24 original documents
02	Ex-A-2 to 5:-	Letters dated 03.05.2018, 08.05.2018, 14.05.2018, 15.05.2018
03	Ex-A-6:-	Bank account statement
04	Ex-A-7:-	Loan application copy
05	Ex-A-8:-	Letter dated 03.07.2018
06	Ex-A-9:-	Advocate letter dated 24.07.2018
07	Ex.A-10:-	Cheque dated 21.08.2018
08	Ex.A-11:-	Bank endorsement
09	Ex.A-12 to 14:-	Letters dated 24.09.2018, 03.10.2018, 09.10.2018
10	Ex.A-15:-	Guarantee Bond

 

Documents marked on behalf of OP:

-Nil-

 

MEMBER                                                   PRESIDENT

Rhr**