Uttar Pradesh

Aligarh

CC/101/2022

UMESH CHAND KHANNA - Complainant(s)

Versus

STATE BANK OF INDIA RASMEC-CUM-SARC - Opp.Party(s)

17 Apr 2023

ORDER

न्यायालय जिला उपभोक्ता विवाद प्रतितोष आयोग अलीगढ

Complaint Case No. CC/101/2022 ( Date of Filing : 17 May 2022 )   1. UMESH CHAND KHANNA S/O LATE SRI HR KHANNA R/O 186 AVAS VIKAS COLONY GT ROAD ALIGARH ...........Complainant(s) Versus 1. STATE BANK OF INDIA RASMEC-CUM-SARC MAIN BRANCH SAMAD ROAD ALIGARH THROUGH THE AUTHORISED SIGNATORY OF THE STATE BANK OF INDIA INDUSTRIAL ESTATE BRANCH ITI ROAD ALIGARH 2. MRS SAVITA KHANNA W/O SRI UMESH CNAND KHANNA R/O 186 AVAS VIKAS COLONY GT ROAD ALIGARH ............Opp.Party(s)

BEFORE:     HON'BLE MR. HASNAIN QURESHI PRESIDENT   HON'BLE MR. ALOK UPADHYAYA MEMBER

PRESENT:

Dated : 17 Apr 2023

Final Order / Judgement The present complaint has been filed by the complainant before this commission for  the following reliefs- The Op be directed to refund the amount Rs.173891/ to the complainant with pendente lite and future interest at the 9% per annum. Compensation for harassment Rs.50000/  Ligation expenses Rs.10000/ The Complainants have stated that the complainant no.1 and his wife Mrs. Savita Khanna complainant no.2 contacted the op in the year 2005 for advancing a loan Rs.600000/ for purchasing a house. They entered into an agreement with the op on 18.10.2005 for term loan Rs. 600000/ for 15 years. It is provided in clause 3 of the agreement. The rate of interest stipulating fixed rate of interest at the rate 8% per annum. The loan amount Rs.600000/ was disbursed to the complainant on 18.10.2005 which was to be repaid in monthly installment of Rs.5562/ as per clause 4 of the agreement. Total amount pay to the bank is Rs.1175051/ whereas total amount to be paid in monthly installment Rs.5562/ is calculated 1001160/ and thus excess amount paid comes to Rs. 1175051/-1001160/ =173891/. On 7.7.2019 recovery notice was issued to the complainant demanded Rs.15389/. Monthly installment Rs.6232/ instead of Rs.5562/was demanded. Complainants moved application dated 18.7.2019 to the bank which was responded by the bank vide letter dated 31.8.2019 whereby it was informed that the bank is entitled to change the rate of interest at its own discretion and the current rate of interest was 9.75% and at the time of advancing loan it was 9%. The OP bank illegally charged interest at the rate more than 8% per annum. There is no clause in the agreement and titling the bank to charge the interest at the rate more than fixed rate at 8% per annum. The bank has illegally charged excess amount of interest Rs. 173891/. Op stated in WS that the complainants were sanctioned a term loan of Rs.600000/ on 18.10.2005 housing finance which was in monthly installment of Rs.5562/. It was enhanced to Rs.6322/ on the basis of terms and conditions of the agreement. The stipulation of the rate of interest is provided in clause 2 (b) of the agreement whereby bank is entitled to charge at its own discretion enhanced rate of interest on outstanding in the loan account. Bank is also entitle to reset the fixed rate of interest at the end of every 3 years on the basis of fixed interest rate prevelling them. The loan was disbursed at rate of interest 9% per annum which remain enforced till 6.8.2008 and thereafter it was enhanced to 9.75%. Bank was empowered to the rate of interest enhancing the monthly installment from Rs.5562/ to Rs 6232/ on the basis of enhanced rate of interest.   Complainant has filed his affidavit and papers in support of his pleadings. OP has also filed his affidavit and papers in support of his pleadings We have perused the material available on record and heard the parties counsel. The first question of consideration before us is whether the bank was entitle to charge the interest more than the rate of interest 8% per annum? if so, its effect. Admittedly, the complainants were advanced loan by the bank amounting Rs.600000/ for 15 years on 18.10.2005 and the agreement was executed between the parties in this regards. Complainants have filed arrangement letter-housing finance (annex.1) which provides in clause 3 the rate of interest as fixed rate of interest at 8% per annum and in clause 4 repayment mode has been provided containing equated monthly installment Rs.5562/. Thus the amount to be paid is 5562/*15=1001160 and actually paid is Rs. 1175051/ as per statement of account (annex.2). Thus the excess amount paid is 173891/.Op bank initially charged the interest at the rate 9% per annum which was later on enhanced to 9.75% It is clear that the bank wrongly charged interest initially at the rate 9% per annum against the stipulation made in agreement at 8% per annum.  As per stipulation made in agreement the rate of interest was settled 8% per annum as fixed rate of interest and it cannot be changed with out entering into fresh contract between the parties to entitle the bank to charge the interest at the rate of agreed rate of interest. Bank is not entitled to charge the interest at the rate more than 8% per annum. Accordingly monthly installment Rs.5562/ cannot be enhanced to Rs. 6232/. Bank cannot act belong the term and condition of the agreement and is not authorized to unilaterally change the rate of interest. Bank was under obligation to charge interest at the rate 8% per annum and by required to maintain the obligation. By charging the interest at the rate higher than the rate under contract amounts to deficiency in service and is liable to made reimbursement of Rs.173891/.   The question formulated above is decided in  favour of the complainant. We hereby direct to Op to reimburse the complainants Rs.173891 with pendente- lite and future interest at the rate 9% per annum and Rs.20000/ for  mental suffering and Rs.5000/ for litigation expenses.   Op  shall comply with the direction within a month failing which OP shall be prosecuted for non-compliance in accordance with section 72 of the Act for awarding punishment against him. A copy of this judgment be provided to all the parties as per rule as mandated by Consumer Protection Act, 2019. The judgment be uploaded as per rule on the website of the commission for the perusal of the parties. File be consigned to record room along with a copy of this judgment.

[HON'BLE MR. HASNAIN QURESHI] PRESIDENT     [HON'BLE MR. ALOK UPADHYAYA] MEMBER