DATE OF FILING : 9.5.2011
BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 29th day of August, 2011
Present:
SRI.LAIJU RAMAKRISHNAN PRESIDENT
SMT.BINDHU SOMAN MEMBER
C.C No.109/2011
Between
Complainant : Jayakumar. K.,
Madhathilkulanagara House,
Kompayar P.O.,
Idukki District – 685552.
And
Opposite Parties : 1. The Assistant Secretary (Loans)
Kerala State Housing Board,
Division Office, Kattappana,
Kattappana P.O.,
Idukki District – 685508.
2. The Chief Executive,
Kerala State Housing Board,
Head Office,
Thiruvananthapuram.
O R D E R
SRI. LAIJU RAMAKRISHNAN (PRESIDENT)
The complainant availed a loan of Rs.70,000/- for constructing a house and he has repaid an amount of Rs.20,955/- for the same. On 31.1.2011, the complainant paid Rs.15,000/- for the repayment of the loan, but the opposite party issued a notice on 1.12.2010 stating that the complainant has to pay another amount of Rs.2,62,710/- with interest of 12%. The complainant availed only Rs.70,000/- as loan amount and repaid Rs.36,000/- to the same. The opposite parties are not entitled for such an amount from the complainant because they have charged penal interest and other expenses. So this petition is filed for directing the opposite party to settle the loan account of the complainant with reasonable interest and also for cancelling the notice issued by the opposite party.
2. As per the written version filed by the opposite party, it is admitted that the complainant availed a loan of Rs.70,000/- from the Board in the year 1997 by pledging his land in Sy. No.4/1 of Parathodu Village vide mortgage deed No.2426/1997 at the Sub Registrar Office Udumbanchola. As per the agreement, the loan was to be repaid in 168 equal monthly instalments and the instalment amount
was fixed at Rs.1,030/-. The complainant repaid the loan promptly upto 13.7.2000.
(cont....2)
- 2 -
Thereafter he made a remittance of Rs.1,030/- on 9.12.2002 and then he has paid Rs.15,000/- only on 31.1.2011, after about 10 years of the receipt of the loan. As per the clause 12 of the mortgage deed executed by the complainant with the Board if any instalment or principal is not remitted on the due date, a penal interest at the rate of 18% in addition to the usual rates shall be paid, for the instalment that are not paid on the due date. And a penal interest of 2.5%, default interest of 15.5% also can be charged. The complainant had fully agreed to these terms and conditions of the mortgage deed. Within 12 years, the complainant paid only Rs.1,030/- and it was in the year 2002. So the complainant is having an arrear of Rs.2,62,710/- to the opposite party as on 30.11.2010. So a registered notice was served to the complainant on 2.11.2007 and 17.12.2007 for remitting the loan arrears. He has also served notices on 3.6.2010 and 9.9.2010 for settling the account under OTS scheme, but there was no response from the part of the complainant. So the required amount of Rs.2,62,710/- has to be remitted with 12% interest and RR collection charge. Evenafter initiating revenue recovery steps, he has served notice on 14.2.2011 and 19.4.2011 as per the OTS scheme. After waivement of Rs.1,06,071/-, the balance amount to be remitted by the complainant is Rs.1,54,376/-. As per the scheme, he would have got 100% waivement of penal interest and 70% of default interest. Besides the OTS facility, he was also allowed to remit the arrears in 6 monthly instalments, but he failed to make use of this opportunity. The amount due to the Board as on 30.6.2011 :-
Principal 64,339/-
Interest 60,130/-
Penal interest 19,392/-
Default interest 1,12,959/-
Miscellaneous 1,000/-
1% collection charge 2,627/-
-------------
Total 2,60,447/-
========
Less waivement as per OTS :-
Penal interest (100%) 20,817/- Including remittance
Default interest (70%) 85,254/- made on 31.1.2011
----------
Total waivement under OTS
which is prevailing now 1,06,071/-
Balance to be remitted on
before 30.6.2011 2,60,447/-
----------------
(cont.....3)
- 3 -
Dues if settlement under OTS
scheme on or before 30.6.2011 1,54,376/-
==========
Under RR Action
R.R. Requisition amount as on 30.11.2010 2,62,710/-
12% interest from 1.12.2010 to 30.6.2011 18,311/-
Conveyance and other charges 2,000/-
5% RR collection charge 13,136/-
-------------
Total 2,96,157/-
========
Dues as on 30.6.2011 2,96,157/-
=======
The OTS scheme has been extended upto 30.9.2011. So the complainant can very well avail the OTS benefit even now.
3. The point for consideration is whether there was any deficiency in service on the part of the opposite parties, and if so, for what relief the complainant is entitled to?
4. The evidence consists of oral testimony of PW1 on the side of the complainant and Exts.R1 to R7(series) marked on the side of the opposite parties.
5. The POINT :- The complainant filed affidavit and produced evidence as PW1. PW1 availed loan of Rs.70,000/- from the opposite party and he repaid Rs.20,955/- to the opposite party. But the opposite parties have calculated Rs.5,661/- only in the account and the balance amount were counted in the interest portion. As per the notice issued by the opposite party on 30.6.2011, the opposite party has calculated the principal amount as Rs.64,339/-, interest Rs.60,130/-, penal interest Rs.19,392/-, default interest Rs.12,959/-, other expenses Rs.1,000/- and collection charge Rs.2,627/-. So a total amount of Rs.2,60,447/- has been demanded by the opposite party. In the version, it is stated that apart from the above said amount, an interest after revenue recovery is Rs.18,311/-, other expenses Rs.2,000/- RR collection charge Rs.13,136/- and a total of Rs.2,96,157/- has been demanded by the opposite party. PW1 has repaid upto Rs.64,339/-, which is the principal amount of the loan. As per the cross examination of the learned counsel for the opposite party, the loan agreement has been produced and marked as Ext.R1 and the statement of
(cont.....4)
- 4 -
account of the complainant's loan is also produced and marked as Ext.R2. Ext.R7(series) is the copy of the loan application for the loan of the complainant. Exts. R3 to R5(series) are the notices issued by the opposite party to the complainant. Ext.R6 is the notice issued by the opposite party on 14.2.2011.
As per the complainant, he has availed a loan of Rs.70,000/- from the opposite party, but he already repaid an amount of Rs.20,955/- to the opposite party, but the opposite party charged hike interest and penal interest for the loan and only Rs.5,661/- has counted in the principal amount. Now the opposite party has demanded Rs.2,96,157/- from the complainant which is quite illegal and the complainant is not entitled to pay the same. As per the opposite party, an agreement has created between the complainant and the opposite party at the time of availing the loan which is Ext.R1. As per the clause 12 of the agreement, the opposite party can charge 18% penal interest in addition to the usual interest rate, if the principal amount or interest is not paid promptly. As per the statement of account of the complainant's loan dated 31.7.2011, the complainant has to pay a total amount of Rs.2,63,233.21/- calculated as RR charge. Ext.R2 is the copy of the same. As per the written version of the opposite party, the complainant is having a due of Rs.2,96,157/- and proceeded for RR on 30.6.2011 for the same. But as per the OTS scheme provided by the Government, the opposite parties are ready to waive 100% penal interest, 70% default interest and the complainant may have to pay only an amount of Rs.1,54,376/-. The OTS facility has been extended upto 30.9.2011 and the complainant can avail the benefit even now.
So we think that eventhough the opposite party produced Ext.R1 agreement created between the complainant and the opposite party stating that the opposite party can charge 18% penal interest other than the usual interest rates and the complainant also agreed and signed in the same, but the opposite party never produced any order or circular from the Government or RBI to show that the opposite party can charge such a hike interest from the complainant, or the opposite party has charged the interest as per the instruction of the RBI or the Government. So being it is a Government institution, it is not proper to charge such a hike interest from consumers and it is an unfair trade practice from the part of the opposite party. We think it is proper to charge 12% interest per annum for the due instalments from the date of due for the complainant's loan. But the opposite parties are providing OTS facility to the complainant with 100% waivement of penal interest and 70% waivement of default interest. So the complainant can avail any of these facilities for settling the loan account of the complainant.
(cont.....5)
- 5 -
Hence the petition partially allowed. The opposite parties are directed to settle the housing loan account of the complainant by calculating interest rate as 12% per annum for the due instalments from the date of due or provide OTS facility as per the circular of the Government.
Pronounced in the Open Forum on this the 29th day of August, 2010
Sd/-
SRI. LAIJU RAMAKRISHNAN (PRESIDENT)
Sd/-
SMT. BINDHU SOMAN (MEMBER)
APPENDIX
Depositions :
On the side of the Complainant :
PW1 - Jayakumar. K.
On the side of the Opposite Parties :
Nil.
Exhibits :
On the side of the Complainant :
Nil.
On the side of the Opposite Parties :
Ext.R1 - Copy of the Mortgage Deed dated 20.10.1997.
Ext.R2 - The statement of account of the complainant's loan.
Ext.R3(series) - Copy of the notices issued by the opposite party to the complainant
dated 2.11.2007 and 17.12.2007.
Ext.R4(series) - Copy of the letters issued by the opposite party to the complainant
dated 18.2.2010 and 15.3.2010.
Ext.R5(series) - Copy of the letters issued by the opposite party to the complainant
dated 3.6.2010 and 9.9.2010
Ext.R6(series) - Copy of the letters issued by the opposite party to the complainant
dated 14.2.2011 and 19.4.2011.
Ext.R7(series) - Copy of the loan application for the loan of the complainant.
