Andhra Pradesh

Nellore

CC/22/2016

Eaga Bhaskar Reddy, S/o Subba Reddy - Complainant(s)

Versus

State Bank of India, Rep. by its Manager - Opp.Party(s)

R.Neelakanta Prasad

13 Oct 2017

ORDER

Date of filing       :  26-02-2016

Date of disposal  :  13-10-2017

 

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM

           :: NELLORE ::

                                                       

Friday, this the  13th day of    OCTOBER, 2017.

 

            Quorum: Sri Sk.Mohd.Ismail, M.A., LL.B.., President

                           Sri K.Umamaheswara Rao, M.A., B.L., Member 

                          

C.C.No.22/2016        

 

Eega Bhaskar Reddy,

S/o.Subba Reddy,

Aged about 63 years,

Residing at B3, Srinivasa Enclave,

Near Water Tank,

Magunta Layout, Nellore,

SPSR Nellore District.                                                               …  Complainant

 

                      Vs.

                                                                            

State Bank of India,

Rep. by its Manager,

Allipuram Branch,

SPSR Nellore District.                                                              … Opposite party

 

This matter coming on  10-10-2017  before us for final hearing in the presence of Sri R.Neelakanta Prasad, Advocate for the complainant and Sri S.Srinivasa Murthy, Advocate for   the opposite party and having stood over for consideration till this day, this Forum passed the following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          

ORDER                                                                                                                                                                                                                                                                  (By Sri Sk.Mohd.Ismail, M.A., LL.B.., President)

 

 

1.      The complaint filed by the complainant against the opposite party to grant damages of Rs.1,00,000/- and grant costs of the complaint.

2.  The brief averments of the complaint are as follows:

        The complainant submits that the on 08-01-2015 the complainant borrowed an amount of Rs.2,30,000/- from the opposite party bank by way of gold loan (GL Account No.34578668274) at the rate of 7% per annum interest.  The due date is 07-01-2016.  7% per annum interest rate is applicable till the due  date.  If the complainant fails to clear the gold loan before the due date the rate of interest may be charged 12% per annum.  But, the complainant cleared the gold loan amount along with interest on 16-11-2015.  He has to pay 7% per annum interest rate.  But, the opposite party Bank collected at the rate of 11% per annum interest from the complainant.  It is abnormal and opposed to public policy  and submits to allow the complaint by directing the opposite party for payment of Rs.1,00,000/-towards damages and submits to allow the complaint with costs.

2.     The opposite party did not file written version.

3.    On behalf of the complainant, the chief affidavit of complainant is received as the evidence of PW1 and Exs.A1 to A5 are marked.

4.   On behalf of the opposite party, the chief affidavit of opposite party is received as evidence of RW1 and Exs.B1 to B3 are marked.

5.  On behalf of both parties, no written arguments filed.

6.  Perused the record.

7.  Now the points for consideration are:

    1) Whether the complaint filed by the complainant

        against the opposite party under section 12 of Consumer

        Protection Act, 1986 alleging deficiency of service against

        the opposite party is maintainable?

  2)   To what relief, the complainant is entitled?

 

8.POINT NO.1:    The learned counsel for the complainant submits by relying

upon the evidence and Exs.A1 to A5 that the complainant borrowed a sum of Rs.2,30,000/- on 08-01-2015 by pledging a gold loan under G.L. Account No.34578668274 with interest @ 7% p.a., and then the complainant deposited an entire amount but the opposite party claimed interest @ 11% p.a., and inspite of issuance of legal notice, the opposite party failed to pay the damages. Hence,  the complainant filed this complaint against the opposite party and submits to allow the complaint with costs.

9.         On the other hand, the learned counsel for the opposite party submits that the complainant borrowed a sum of Rs.2,30,000/- and repayable with interest @7% p.a. but the complainant was also borrowed other loans from the other branches i.e., State Bank of India, Collectorate branch, Nellore, received a sum of Rs.1,00,000/- under loan account No.33262134419 and Rs.2,00,000/- under loan account No.3361875460 and thus the complainant borrowed exceeding a sum of Rs.3,00,000/- from three branches and hence the opposite party submits by relying  upon Ex.B3 that the complainant borrowed exceeding a sum of Rs.3,00,000/- from three branches under three loan accounts and submits that the complainant has not claimed interest @ 7% p.a. and the opposite party has to right to claim interest @11%p.a.,  and hence as there is no deficiency of service  and submits that the complaint filed by the complainant against the opposite party is not maintainable under the circumstances for dismissal of the complaint with costs.

 

10.     In view of the arguments submitted by the learned counsels for the both parties and as seen from the contents of Ex.B1 about the loan of Rs.2,30,000/- under loan account No.34578668274 from the opposite party i.e., State Bank of India, Allipuram Branch, Nellore Rural Mandal and then the complainant was borrowed another sum of Rs.1,00,000/- under loan account No.33262134419 from the State Bank of India, Collectorate branch, Nellore and then the complainant borrowed another sum of Rs.2,00,000/- from the State Bank of India, Collectorate branch, Nellore then the complainant totally  borrowed a sum of Rs.5,30,000/-from the two branches and thus the complainant violated the terms and conditions of the gold loan and hence the complaint is not maintainable, as the complainant borrowed total sum of Rs.5,30,000/-  is not entitled to claim interest @7%p.a.  The opposite party collected interest amount @ 11%p.a. as per the rules of Reserve Bank of India. By relying upon the contents under Ex.B1 to B3, as the complainant was availed loan of Rs.5,30,000/- and as the complainant violated the terms and conditions of gold loan.   We are of the opinion that the complaint filed by the complainant against the opposite party is not maintainable and the same has to be dismissed.  In view of the above said discussion, we answer this point against the complainant and infavour of the opposite party. 

11.   POINT NO.2:  In view of our answering on point No.1 against the complainant and infavour of the opposite party, we are of the opinion that the complaint filed by the complainant is not maintainable and the same has to be dismissed.

        In the result, the complaint is dismissed, but in the circumstances no costs.

Dictated to the Stenographer, transcribed by her and corrected and pronounced by us in the Open Forum this the 13th day of OCTOBER, 2017.    

 

                     Sd/-                                                                      Sd/-                        

              MEMBER                                                                  PRESIDENT

  APPENDIX OF EVIDENCE

 WITNESSES EXAMINED FOR COMPLAINANT:

 

PW1

10-10-2016

:

Eega Bhaskar Reddy, S/o.Subba Reddy, aged about 63 years, residing at B3, Srinivasa Enclave, Magunta Layout, Nellore, SPSR Nellore District.

 

WITNESSES EXAMINED FOR OPPOSITE PARTY:

 

RW1

21-09-2017

:

Kamalakar Bussa S/o.Charles, Hindu, aged about 42 years, working in State Bank of India, Allipuram Branch, Sri Potti Sriramulu Nellore District.

                                                                         

EXHIBITS MARKED FOR COMPLAINANT:

 

Ex.A1	08-01-2015	:	Gold loan No.AGL 22/846 under GL Account No.34578668274 security particulars receipt issued by the opposite party in favour of the complainant.
Ex.A2	16-11-2015	:	Repayment receipt for Rs.2,53,237/- issued by the opposite party in favour of complainant.
Ex.A3	02-12-2015	:	Legal notice got issued by the counsel for the  complainant to the opposite party.
Ex.A4	07-12-2015	:	Registered Postal receipt.
Ex.A5	01-01-2016	:	Reply notice got issued by the counsel for the opposite party to the counsel for the complainant.

 

EXHIBITS MARKED FOR OPPOSITE PARTY                     

 

Ex.B1	20-09-2017	:	Statement of Account of the Gold Loan account of the complainant with the opposite party under loan A/c.No.34578668274.
Ex.B2	20-09-2017	:	Statement of Account of the Gold Loan account of the complainant with the SBI, Collectorate Branch, Nellore under Loan A/c.No.33262134419.
Ex.B3	20-09-2017	:	Statement of Account of the Gold Loan Account of the complainant with the SBI, Collectorate branch, Nellore under Loan A/c.No.33261875460.

        

                                                                               Id/-

                                                                      PRESIDENT

 

 

 

Copies to:

 

1. Sri R.Neelakanta Prasad, High Court Advocate,

D.No.20-284/18, NAndithota, Mulapet, Nellore.

 

2. Sri S.Srinivasa Murthy and Sri K.V.Sudhakar, Advocates, K.V.Agraharam, Trunk Road, Nellore.