IN THE CONSUMER DISPUTES REDRESSAL FORUM, KOTTAYAM
Dated this the 27thday of December, 2022
Present: Sri. Manulal.V.S, President
Sri. K.M.Anto, Member
CC No. 145/18 (Filed on 12/07/2018)
Complainant : Tony Thomas Nellickan, S/o Thomas
KachiramattomNellickal House,
Valavoor Kara, Vallichira Village,
KaroorPanchayath, Meenachil Taluk
Represented by Thomas, KachiramattomNellickal House,
Valavoor Kara, Vallichira Village,
KaroorPanchayath, Meenachil Taluk
(Adv.Mani Cyriac)
Vs
Opposite party : Manager, State Bank of India, Pala
Branch, Pala P.O, Meenachil Taluk
(Adv.P.G.Girija)
O R D E R
Sri. K.M. Anto, Member
The Complaint is filed under section 12 of the Consumer Protection Act1986.
The brief of the Complainant’s case is as follows. The complainant had availed an NRI housing Loan for an amount of Rs.30 Lakhs from the opposite party on 05/06/2007 for the purchase of a House and property. The loan was to be repaid in 180 monthly installments of Rs.34,100/-.
On 03/06/2014 the complainant had availed another Loan for Rs.30 Lakhs under Suvidha Loan scheme by mortgaging the same House and Property.
The complainant had given a request to the opposite party on 29/07/2015 requesting the statement of accounts for closing the accounts. The opposite party had informed that Rs.28,90,369/- was to be paid in Hosing Loan Account No.67038145016 and Rs.30,16,506/- in Suvidha Loan Account No.67278732190.
On 18/08/2015 a complaint was given to the opposite party that the calculation of interest is not correct and the opposite party had charged interest for the entire capital amount apart from the paid EMIs.
The complainant had closed the loans by remitting Rs.28,95,117/- in account No.37038145016 and Rs.30, 24,221/- in account No.67278732190 on 28/09/2015.
The opposite parties had collected money illegally from the complainant and no replay was given to the complaints. The complainant had filed a complaint before the Banking ombudsman and the complaint was disposed on 11.02.2016 with a direction that complainant can redress the grievance by approaching any other forum. And hence the cause of action of this complaint stats on 11.02.2016.
The opposite party had realized interest for the entire principal amount without considering the EMI paid by the complainant. As per the terms and conditions of the Housing Loan the complainant need only to remit Rs.20,38,000/- after deducting the 94 EMIs paid. The opposite party had realized Rs.8,50,000/-in Housing loan account and Rs.1,00,000/- in Suvidha loan account. The opposite party is bound to refund Rs.9,50,000/- with 12% interest to the complainant.
The act of the opposite party is unfair trade practice and deficiency in service. The complainant is also eligible to get Rs.2,00,000/- as compensation for the mental agony and sufferings.
On admission of the complaint copy of the complaint was duly served to the opposite party. The opposite party appeared and filed their version.
The version of the opposite party is as follows. The complainant had availed a Housing Loan of Rs.30,00,000/- from the opposite party on 05/06/2007.The Period of loan was 180 months and the EMI fixed was Rs.34,100/-. Subject to revision if there is any revision in the interest rate and such revision is binding on the complainant at all times. The complainant had executed the Loan agreement and accepted the terms and conditions in the loan sanction letter dated 05/06/2007.
The complainant had availed another Suvidha Loan for Rs.30,00,000/- from the opposite party. The complainant was not prompt in repaying the EMIs.So interest was applied for the defaulted amount. The agreed interest will be applied on the monthly rests calculated on the daily balance of the Loan. The opposite party is entitled to realize the interest if the EMI is not paid promptly. The complainant was appraised of all these facts.
The complainant had closed the Loans accounts after remitting the actual amount due to the opposite party. The averment that opposite party had realized monthly interest for the principal amount in addition to the paid EMIs is not correct. There is no deficiency in service or unfair trade practice on the part of the opposite party.
The complainant filed proof affidavit and marked documents Exhibits A1 to A20.
The opposite party filed proof affidavit and marked documents ExhibitsB1 and B2.
On the basis of the complaint, version of the opposite party and evidence adduced we would like to consider the following points.
- Whether there is unfair trade practice or deficiency in service on the part of the opposite party.
- If so what are the reliefs and costs?
We would like to consider point No 1 and 2 together.
Points 1 and 2
On going through the complaint, version of the opposite party and evidence adduced it is clear that the complainant had availed a Housing Loan for Rs.30,00,000/- from the opposite party on 05/06/2007.
The complainant had availed another Medium Term -Suvidha Loan for an amount of Rs.30,00,000/- from the opposite party on 03/06/2014.
Ext A1 is the Loan Sanction Letter of Housing Loan dated 05/06/2007 issued by the opposite party for Loan amount Rs.30,00,000/- . The conditions of the loan are as follows.Period of Loan is 180 months, Rate of interest 2% above/below SBTPLR, Minimum 11%p.a Interest, with quarterly rests. Effective rate 11% p.a, Monthly Installment (EMI) Rs.34,100/- (Subject to change).
Ext A2 is theLoan Arrangement Letter dated 03/06/2014 for Rs.30,00,000/- with following conditions. Rate of Interest 5.5% above SBT base rate which is 15.75 P.a with monthly rests. The Loan is to be repaid in 120 Equated monthly installments of Rs.50,000/- each till the entire loan is fully repaid.
Ext A6 is the Letter issued by the opposite party on 25/09/2015 statingthat total outstanding balance in the Housing Loan as on 28/09/2015 will beRs.28, 95,166/- and in the Suvidha Loan account the outstanding balance will be Rs.30,24,201/-. Total amount outstanding as on 28/09/2015 will beRs.59,19,367/- in both the loans.
Ext A20 is a certificate issued by Shono John Joseph, Chartered accountant (No.245165) issued after analyzing loan account statements of the complainant.Theprincipal outstanding as on September 2015 is calculated to be the total of the principal outstanding in September 2015 as no default in EMIs with the defaulted amount in EMIs and the interest on the defaulted EMIs.
- Housing loan account No.67038145016, loan amount Rs.30,00,000/-, period 240 months EMI Rs.31,000/-from 05/06/2007.
The principal outstanding in September 2015 is Rs.25,32,750/- if there is no default in EMI. There is a default of Rs.2,16,000/- on EMI payment. The Borrower has to pay Rs.81,293/- as interest on defaulted ofEMIs.
In closure of loan in September 2015 the borrower is liable to pay 25,32,750+ 2,16,000 +81,293= 28,30,043/-
However the bank had claimed an amount Rs.28,95,166/-.Thus an amount of Rs.65,123/- is paid extra on 28/09/2015.
- In Suvitha loan account Loan amount is Rs.30,00,000/-. The EMI is Rs.50,000/- , and the period of Loan was 120 months from June 2014.
The principal outstanding in September 2015 is Rs.28,16,928/- if there is no default in EMI. There is a default of Rs.1,37,850/- on EMI payment. The borrower has to pay Rs.7,403/- as interest on the defaulted EMIs.
On closure of the Loan in September 2015 the borrower is liable to pay 28,16,928+1,37,850 +7,403 = 29,62,181/-.
However the bank had claimed an amount Rs.30,24,201/-.Thus an amount ofRs.62,020/- was charged extra on 28/09/2015.
For closing the two loan accounts on 28/09/2015 the complainant hadremittedRs.1,27,144/- in excess to the opposite party.
Ext.B1 is the statement of account in the housing loan with No.67038145016 of the complainant. The total outstanding on 28/09/2015 is Rs.28,95,177/-.Ext B2 is the statement of account in account No.67278732190 for the period from 03/06/2014 to 30/09/2015. The total outstanding on 28/09/2015 is Rs.30,24,221/-. Every month the outstanding amount is calculated by adding interest to the outstanding amount of the previous month.Again Interest will be calculated for this outstanding amount. Thus in every month end the outstanding principal amount is fixed by the opposite party bank.
On perusing the account statements Ext B1 and ExtB2 it is evident that the interest for the month on the principal outstanding is calculated and added to the outstanding principal amount to fix the outstanding balance at the end of that month. But in Ext A20 the interest of the unpaid EMI is calculated at the time of closing of the loan in September 2015 which is against the loan conditions given in Ext A1 and Ext A2.
The complainant is liable to remit the outstanding balance amounts as on 28/09/2015 given in Ext B1 and ExtB2 account statements. The complainant failed to prove that the opposite party had charged extra amount from the complainant while closing the loans on 28/09/2015.There is no deficiency in service on the part of the opposite party. The complaint is liable to be dismissed. The complaint dismissed.
Pronounced in the Open Commission on this the 27th day of December, 2022.
Sri. K.M. Anto, Member sd/-
Sri. Manulal.V.S, President sd/-
Appendix
Exhibits marked from the side of complainant.
A1- Housing Loan sanction letter dated 05/06/2007 issued from State Bank of India.
A2- Copy of Suvitha Loan sanctioned letter dated, 03/06/2014.
A3- Copy of application for statement of account dated 29/07/2015.
A4- Copy of account closure letter dated 22/09/2015 issued from SBT
A5- Copy of application to the Chief Manager, SBT Pala dated 18/08/2015.
A6- Copy of loan closed receipt dated 25/09/2015.
A7- Copy of protest letter dated 28/09/2015.
A8- Copy of complaint to the Regional Manager, SBT, Pala dated 28/09/2015.
A9- Copy of complaint before the Banking Ombudsman dated 04.11.2015.
A10- Copy of reply letter dated 11/02/2016 issued from Banking Ombudsman.
A11- Copy of statement of account dated 19/10/2015 issued by SBT Pala.
A12- Copy of complaint to the Chief Manager, SBT Pala dated 11/05/2006.
A13- Copy of complaint before the State Information Commission dated 07/12/2016.
A14- Copy of reply letter from State Information Commission dated 21/12/2016.
A15- Copy of complaint to the Central Information Commission dated 04/07/2017.
A16- Copy of Housing loan EMI and interest details chart.
A17- Copy of statement of account (Loan No. 67038145016) dated 30/09/2015 issued by SBT, Pala.
A18- Copy of statement of account (loan no.67278732190) dated 30/09/2015 issued by SBT, Pala.
A19- Copy of power of attorney dated 12/08/2015.
A20- Copy of certificate from Chartered Accountant dated 18/02/2022.
Exhibits marked from the side of opposite party
B1- Statement of account from 05/06/2007 to 31/12/2016 (Loan No.67038145016).
B2- Statement of account from 03/06/2014 to 30/09/2015 (Loan No.67278732190).
By Order
sd/-
Assistant Registrar
