In the Court of the
Consumer Disputes Redressal Forum, Unit -I, Kolkata,
8B, Nelie Sengupta Sarani, Kolkata-700087.
CDF/Unit-I/Case No. 178 / 2009.
1) Mr. Paulose John,
2) Mrs. Susamma Paulose
Both of 44A, Dilkhusa Street, Kolkata-700017. ---------- Complainant
---Versus---
1) The Branch Manager, HDFC Bank Ltd.,
U.N. Brahmachari Street Branch,
Shakespeare Sarani, Kolkata-700017.
2) The Manager, Loan Against Securities Department, HDFC Bank,
Gilnder House, Kolkata-700001.
3) The Chairman, HDFC Bank Limited,
HDFC Bank House, Senapati Bapat Marg,
Lower Parel(West), Mumbai-400013.
4) The Managing Director, HDFC Bank Limited,
HDFC Bank House, Senapati Bapat Marg,
Lower Parel(West), Mumbai-400013.
5) The Manager, Central Processing Unit, HDFC Bank Ltd.,
HDFC Bank House, Narayan Properties,
26A, Chandivili, Saki Naka, Andheri (West), Mumbai-400013.
6) HDFC Bank Limited,
HDFC Bank House, Senapati Bapat Marg,
Lower Parel(West), Mumbai-400013. ---------- Opposite Parties
7) The Branch Manager, Life Insurance Corporation,
City Branch no. 5, of L.I.C.,
24, C.R. Avenue, Kolkata-700072. ------- Proforma Respondent
Present : Sri Sankar Nath Das, President.
Dr. A. B. Chakraborty, Member
Order No. 2 4 Dated 28/03/2012.
Complainants Mr. Paulose John and his wife rs. Susamma Paulose availed themselves of a loan against security with an overdraft limit of Rs.79,000/- from o.p. no.1 which was sanctioned on 23.4.07 and statement of account dt.23.4.07 to 30.4.07 was received by the complainants with a debit note of Rs.787.94 even before availing of such loan, vide annex-A. The loan account no.01052490000069 for which no copy of of agreement or any other document or paper signed by complainants and o.p. no. 1 was supplied to the complainants. As security complainants mortgaged their joint life insurance policy which is supposed to get matured on 11.2.13. And complainants paid total premium of Rs.1,46,280/- since 11.2.1993 without any default. O.p. no.1 took the said policy in original at the time of signing of the loan agreement vide annex-B. On 3.5.07 the complainant withdrew Rs.75,000/- and on 14.5.07 they withdrew Rs.3000/- making a total withdrawal of Rs.78,000/- from their loan account. Thereafter since 1.6.07, complainant started depositing interest regularly keeping an eye to total due as was reflected in the statement of accounts sent by o.ps. vide annex-D collectively. On 22.4.08 complainant paid Rs.5500/- including Rs.500/- as annual maintenance charge and his total due on 1.5.08 was Rs.80,108.89 only. And it is the specific grievance of the complainants that even after receiving Rs.5500/- on 22.4.08, o.p. nos.1 and 2 in connivance with o.p. nos 3 to 6 withou,t taking any permission, whatsoever, surrendered. Complainants joint life insurance policy (Jeevan Saathi – with profit) being no.411197320 only for on 27.5.08 an amount of Rs.1,11,172/- in spite of the fact that complainants paid total premium of Rs.1,46,280/- towards said insurance policy. And the fact remains that o.ps. adjusted their entire principal loan amount of Rs.78,000/- from the surrendered amount of Rs.1,11,172/- of the said LIC policy knowingly well that both the complainants were retired persons and the said policy would have become matured on 11.2.13 for which maturity value would have been around Rs.5,00,000/- and in case of death the amount would have been more. But in reality after adjusting Rs.78,000/- and interest of Rs.2108.89 i.e. total amount of Rs.80,108.89, o.ps. audited complainants account with only Rs.30,144.56. By such arbitrary act of o.ps. complainants became very much frustrated and wrote one letter dt.10.12.08 vide annex-D, received by o.p. no.2 on 12.12.08. But no reply came from o.ps. to complainants. And to their utter surprise, o.ps. went on debiting complainants’ account by Rs.561.8 every month since Dec, 2008 to 20.3.09 regularly and the amount of Rs.30,144.56, which was credited to complainants’ account earlier, came down to Rs.25,098.66 vide annex-D collectively. And complainants again wrote a letter to o.p. no.2 dt.17.12.08 received on 18.12.08. And on 20.12.08 complainants received one reply with the assurance from o.ps’ end that matter was under investigation and within 15 days o.ps. would let him know the result of such investigation. But no further reply reached the complainants. Thereafter, complainants sent one legal notice dt.21.2.09 stating therein that o.ps. were liable to pay Rs.7,50,000/- for all financial loss they have incurred due to o.ps’ such negligent and arbitrary action coupled with unfair trade practice vide annex-E. In reply complainants received from o.ps. one letter dt.21.3.09 whereby they admitted that complainants’ LIC policy was surrendered on 8.5.08 with assurance that officers of the o.ps. would contact the complainants for amicable settlement of the matter vide annex-G. But all went in vain. Only to realize Rs.2108.89 of interest amount and Rs.78,000/- of principal amount of loan, o.ps. surrendered insurance policy of complainants without giving any notice, whatsoever, to the complainants to the utter dismay of the complainants that caused serious financial as well as mental loss and harassment to the complainants. So, filing this instant case, complainants prayed for directions to be given upon o.ps. to compensate them by an amount of rs.7,50,000/-, to pay Rs,.10,000/- as litigation cost along with any other order or orders as the Forum may deem fit and proper. Notices were served upon o.ps. All the o.ps. 1 to 6 appeared and filed their w/v. Also proforma o.p. LIC India appeared and filed w/v. Accordingly, the case was heard on merit.
Decision with reasons:
From para 6(b) of w/v filed by o.p. nos.1 to 6, it is admitted that on 19.4.08 there was a due amount of Rs.84,583.96 vide annex-B. After receiving Rs.5500/- on 2.5.08 there was an amount of Rs.80,170.69 due to be paid by the complainant vide annex-B. And to realize such amount, o.ps. without following the principle of natural justice i.e. without giving any notice to the complainants, simply surrendered their insurance policy for such a lower amount of Rs.1,11,172/-. Again after realizing that Rs.80,170.69 credited complainants’ account with Rs.31,000.31. But they went on charging further upto 20.3.09 with the adjustment of entire amount of Rs.8,170.69. Complainants’ loan account ought to have closed. O.ps. did not have any authority to continue with the loan account which is not only unfair trade practice but also sheer negligence in discharging duties. Ours is a welfare state, here people take an insurance policy not only to cover death risk but also as a proper investment policy which would give them a good amount on maturity that may be utilized during old age. In this particular case, that maturity amount was supposed to be Rs.5000/- more or less and death benefit would have been even more. In para 13, o.ps. have alleged that complainants did not pay any premium for the said policy since 22.2.08 and the policy was in danger of lapsing. But o.p. no.7 LIC never alleged that complainants did not pay any premium after 22.2.08. Accordingly, o.p. nos. 1 to 6’s claim in this regard has got no merit.
Under the above discussed premises, we found o.p. nos.1 to 6 have acted arbitrarily without any lawful basis. O.ps. gave loan and yes, they are entitled to realize the same. But there is law of the land which does not allow o.ps. to act in such a negligent way nor to adopt such unfair trade practice. Accordingly, the case succeeds on merit on contest with cost again o.p. nos.1 to 6 and dismissed against o.p. no.7.
Hence, ordered,
That o.p. nos.1 to 6 are directed to pay an amount of Rs.5,00,000/- (Rupees five lakhs) only as compensation and Rs.5000/- (Rupees five thousand) only as litigation cost within 45 days from the date of communication of this order, i.d. the entire amount will carry an interest @ 10% p.a. till full realization.
Supply certified copy of this order to the parties.
____Sd-_____ ______Sd-______
MEMBER PRESIDENT
