Tamil Nadu

South Chennai

CC/143/2015

T.J.Vijaya Kumar - Complainant(s)

Versus

The Branch Manager, Indian Overseas Bank - Opp.Party(s)

N.Maheshwaraiah

22 Jan 2020

ORDER

                                                                             Date of filing      : 09.04.2015

                                                                               Date of disposal : 22.01.2020

                                                                                  

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, CHENNAI (SOUTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 3.

 

PRESENT: THIRU. M. MONY, B.Sc., L.L.B, M.L.                    : PRESIDENT

TR. R. BASKARKUMARAVEL, B.Sc., L.L.M., BPT., PGDCLP.  : MEMBER

 

C.C. No.143/2015

DATED THIS WEDNESDAY THE 22^ND DAY OF JANUARY 2020

                                 

T.J. Vijayakumar,

S/o. Mr. T.R. Jayaraman,

No.32, Flat No.2, Tholkapier Street,

Santhoshapuram,

Chennai – 600 073.                                                        .. Complainant. 

                                                                                                 ..Versus..

 

1. The Branch Manager,

Indian Overseas Bank,

Velachery Branch,

Velachery,

Chennai – 600 042.

 

2. The General Manager,

Customer Service Department,

Indian Overseas Bank Central Office,

No.763, Anna Salai,

Chennai – 600 001.

 

3. Credit Information Bureau India Ltd.,

Represented by its Secretary,

Hochest House, 6^th Floor,

No.193, Badbay Reclamation,

Nariman Point,

Mumbai – 400 021.                                                ..  Opposite parties.

 

Counsel for the complainant                 : M/s. N. Maheswariah

Counsel for the opposite parties 1 & 2 : M/s. K. Balajee & another

Counsel for the 3^rd opposite party        : M/s. S. Parthasarathy

ORDER

THIRU. M. MONY, PRESIDENT

       This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act, 1986 prays to correct the details of the complainant in the loan account and gender, to pay a sum of Rs.2,350/- which spent by the complainant to obtain the report from the 3^rd opposite party and to pay a sum of Rs.1,00,000/- towards compensation for mental agony and hardship with cost of Rs.10,000/- to the complainant.

1.    The averments of the complaint in brief are as follows:-

The complainant submits that he availed the housing loan of Rs.25,50,000/- on 29.04.2011 as per the Sanction Letter dated:11.04.2011 of the 1^st opposite party.   The complainant’s loan account number is 351100017.  The said loan shall be repaid by way of 243 monthly instalments at the rate of Rs.24,400/-.   The complainant deposited his title deeds in favour of the bank as security.  The complainant submits that while approaching the opposite parties for housing loan he along with his wife Mrs. Subathira has given the particulars and details very correctly and legibly.   But the 1^st opposite party has wrongly noted the Gender as ‘Female’ and the loan is for ‘Two Wheeler’.   The complainant submits that he approached the 3^rd opposite party with regard to the status of the account by the letter dated:09.05.2013 which was mentioned wrongly that the complainant’s Gender was ‘Female’ and the loan was related to ‘Two Wheeler Loan’.   The complainant submits that immediately after receipt of letter, he approached the 1^st opposite party bank and requested for rectification / correction of the mistake.  But the 1^st opposite party assured him to correct the same but failed to do so.   The complainant expended a sum of Rs.2,350/- towards such rectification of defects.  The 3^rd opposite party vide their letter dated:19.09.2013, 11.03.2014, 22.07.2014 & 26.09.2014 attaching the report, wherein, it was also stated that the loan was mentioned as ‘Two Wheeler and his gender as ‘Female’ only. 

2.     The complainant submits that as per the report given by the 3^rd opposite party, it is understand that the 1^st opposite party has not corrected the personal data of the complainant in the loan account though they assured for correction. The act of the 1^st opposite party for non-correction of the personal and loan information in the loan account amounts to deficiency in service.  The complainant submits that he sent a final letter to the 2^nd opposite party on 24.11.2014 by R.P.A.D.  marking copy to the 1^st opposite party.   But till date the opposite parties were not corrected the information regarding the personal details and the name of loan.  The act of the opposite parties 1 to 3 amounts to deficiency in service and unfair trade practice which caused great mental agony.   Hence, the complaint is filed.

3.      The brief averments in the written version filed by opposite parties 1 & 2 is as follows:-

The opposite parties 1 & 2 specifically deny each and every allegations made in the complaint and put the complainant to strict proof of the same.    The opposite parties 1 & 2 state that after receiving the complaint from the complainant regarding the mistaken information revealed in CIBIL, the opposite party took action to rectify the said mistake.   The opposite parties 1 & 2 state that they have already re-submitted the updated information to CIBIL to rectify the same mistakes.  The opposite parties 1 & 2 state that the complainant has not paid any consideration to the opposite party for disclosing the details to CIBIL.   The disclosure of information to CIBIL is an internal activity of the opposite parties.   The opposite parties 1 & 2 state that in CIBIL Report, name of the borrower and the loan amount were correctly mentioned.   The opposite parties 1 & 2 have not committed any deficiency in service and the complaint is liable to be dismissed.

4.      The brief averments in the written version filed by 3^rd opposite party is as follows:-

The 3^rd opposite party specifically denies each and every allegations made in the complaint and put the complainant to strict proof of the same.    The 3^rd opposite party states that the complainant is not a ‘Consumer’ of the 3^rd opposite party under the Consumer Protection Act, 1986 as neither the complainant has availed of any services or products for consideration from the 3^rd opposite party nor has he provided any service(s) or products for consideration to the complainant.   There is no privity of contract between the complainant and the 3^rd opposite party.   The 3^rd opposite party states that he is a company incorporated under the provisions of the Companies Act, 1956 and is engaged in the business of storing, retrieving, compiling, collating, collecting, processing and maintaining a data in the bank for credit information relating to both individuals and entries of all types whether incorporated or not, for the use of banks and the financial institution dealing with the distribution of credit.  The 3^rd opposite party functions as a credit information company in accordance with the provisions of the Credit Information Companies (Regulation) Act, 2005 made under CICRA.   Furnishing of credit information is strictly to a closed user group of members, individuals and the specified users as permitted/ required under the provisions of the CICRA.   But in terms of Section 31 of the CICRA ‘No court or authority shall have or be entitled to exercise any jurisdiction, powers or authority except the Supreme Court or the High Court exercising jurisdiction under Articles 32, 226 & 227 of the Constitution in relation to the matter referred to in the said section (which inter alia includes section 18 of CICRA dealing with settlement of disputes)’. 

5.     The 3^rd opposite party states that in terms of section 18 of the CICRA Act, notwithstanding anything contained in any law for the time being in force, any dispute on matters relating to the business of credit information is required to be settled solely by conciliation or arbitration under the Arbitration and Conciliation Act, 1996.   That credit information is the credit history of previous and current borrowing(s)/ credit(s) availed by both individual and entities like partnership firms, proprietary concerns, private and public limited companies   etc.   This information is applicable on all loan products, credit cards etc.   The 3^rd opposite party issued the Credit Information Report (CIR) in a standard format and it does not create information or provide inputs thereon of its own.   The 3^rd opposite party states that he acts as a repository of credit information.   Any rectification in the data base of credit information or change in the credit information can only be made in accordance with the provisions of the CICRA.   It is submitted after receipt of the complainant’s grievance for the changing the enquiry of the two wheeler loan of Rs.25,00,000/- as Home loan vide his email dated:17.06.2013 and the gender as “Male” from “Female”, the 3^rd opposite party immediately took congnizance of the issue.    The 3^rd opposite party by its emails dated:20.06.2013 & 25.06.2013 advised the complainant that the details of home loan account No.129603351100017 with the opposite parties 1 & 2 were not appearing in its database – which means that the relevant opposite parties 1 & 2 had not reported the data to the 3^rd opposite party and also explained to the complainant that the entries appearing in his “Enquiry” were only enquires made by him and does not mean transactions executed / credit facilities availed by him.  

6.     It is further submitted that immediately upon the complainant raising the issue under the present complaint regarding the error in his personal details i.e. under the tab gender, “Female” appearing in place of “Male” and his home loan account with the opposite parties 1 & 2 not appearing in the CIR, the 3^rd opposite party further investigated the matter and took up the issue with the relevant credit institution to verify the identification details submitted by the credit institution and accordingly upon being satisfied that the error was due to discrepancy in one of the identifiers submitted by a credit institution, rectified the error in the complainant’s credit information and forwarded a fresh CIR dated:11.09.2015. In this regard, it is pertinent to note that any rectification in the data base of credit information or change in the credit information can only be made in accordance with the provisions of the CICRA.   Section 21 of the CICRA deals with alteration of credit information files and credit reports and reads as follows:-

“21. Alteration of credit information files and credit reports-

(3) if a credit information company or specified user or credit institution in possession or control of credit information, has not updated the information maintained by it, a borrower or client may request all or any of them to update the information, whether by making an appropriate correction, or addition or otherwise, and on such request the credit information company or the specified user or the credit institution, as the case may be, shall take appropriate steps to update the credit information within thirty days after being requested to do so:

Provided that the credit information company and the specified user shall make a correction, deletion or addition to the credit information only after such correction, deletion or addition has been certified as correct by the concerned credit institution:

Provided further that no such correction, deletion or addition shall be made in the credit information if any dispute relating to such correction, deletion or addition is pending , before any arbitrator or tribunal or Court and in cases where such dispute is pending, the entries in the books of the concerned credit institution shall be taken into account for the purposes of credit information”.

Hence, it is humbly prayed by the 3^rd opposite party to dismiss the complaint.

7.     To prove the averments in the complaint, the complainant has filed proof affidavit as his evidence and documents Ex.A1 to Ex.A9 are marked.  Proof affidavit of the opposite parties 1 & 2 is filed and no document is marked on the side of the opposite parties 1 & 2.  Proof affidavit of the 3^rd opposite party is filed and documents Ex.B1 to Ex.B4 are marked on the side of the 3^rd opposite party.

8.      The points for consideration is:-

1. Whether the complainant is entitled the relief of correcting the details of the complainant namely; Gender, date of birth and purpose of loan etc as prayed for?

 

2. Whether the complainant is entitled to a sum of Rs.2,350/- expended towards rectification of defects with a compensation of Rs.1,00,000/- for mental agony with cost of Rs.10,000/- as prayed for?

 

 

9.      On point:-

Both parties filed their respective written arguments.  Heard their Counsels also.  Perused the records namely; the complaint, written version, proof affidavits and documents.   The learned Counsel for the complainant would contend that he availed the housing loan of Rs.25,50,000/- on 29.04.2011 as per the Sanction Letter dated:11.04.2011 of the 1^st opposite party as per Ex.A1.   The said loan shall be repaid by way of 243 monthly instalments at the rate of Rs.24,400/-.   The complainant deposited his title deeds and created equitable mortgage.  Further the contention of the complainant is that while approaching the opposite party for housing loan he along with his wife Mrs. Subathira has given the particulars and details very correctly and legibly.   But the 1^st opposite party has wrongly noted the Gender as Female and the loan is for Two Wheeler.  Later, it was found out from the Memo dated:28.11.2018 and enclosures that the complainant’s date of birth also wrongly entered in the loan account which amounts to utter negligence and deficiency in service of the opposite parties.  Further the contention of the complainant is that he approached the 3^rd opposite party with regard to the status of the account by letter dated:09.05.2013 as per Ex.A2 which was mentioned wrongly that the complainant’ Gender as ‘Female’ and the loan was related to ‘Two Wheeler Loan amounts to deficiency in service.   

10.    Further the contention of the complainant is that immediately after the receipt of Ex.A2, letter, he approached the 1^st opposite party bank and requested for rectification / correction of the mistake.  But the opposite party miserably failed to do the same proves deficiency in service.   The complainant expended a sum of Rs.2,350/- towards such rectification of defects.   But the complainant has not produced any receipt for such amount of Rs.2,350/- except Ex.A2 & Ex.A3 for a sum of Rs.804/- each.   Further the contention of the complainant is that even repeated requests and demands and sending letters to the opposite parties 1 to 3, they have not come forwards to rectify the defects which is mandatory.   Hence, the complainant was constrained to file this case claiming compensation of Rs.1,00,000/- with cost of Rs.10,000/- and rectification of such inherent defects created by the opposite parties.   When the case was at the state of arguments, the opposite party filed a Memo stating that they have rectified the defects and enclosed a document to show such rectification.   But on a careful perusal of the enclosure to the Memo which is very clear that the date of birth of the complainant is stated as “16.02.1982” instead of “21.05.1978” proves the deficiency in service.

11.    The learned Counsel appearing for the opposite parties contended that the 3^rd opposite party functions as a credit information company and nothing to do with the information etc.  Section 21 of the CICRA deals with alteration of credit information files and credit reports and reads as follows:

“21. Alteration of credit information files and credit reports-

(3) if a credit information company or specified user or credit institution in possession or control of credit information, has not updated the information maintained by it, a borrower or client may request all or any of them to update the information, whether by making an appropriate correction, or addition or otherwise, and on such request the credit information company or the specified user or the credit institution, as the case may be, shall take appropriate steps to update the credit information within thirty days after being requested to do so:

Provided that the credit information company and the specified user shall make a correction, deletion or addition to the credit information only after such correction, deletion or addition has been certified as correct by the concerned credit institution:

Provided further that no such correction, deletion or addition shall be made in the credit information if any dispute relating to such correction, deletion or addition is pending , before any arbitrator or tribunal or Court and in cases where such dispute is pending, the entries in the books of the concerned credit institution shall be taken into account for the purposes of credit information”.

But in this case, the 3^rd opposite party has not taken any steps to rectify the defects mentioned in the complaint even after repeated requests and demands and letters as per Ex.A2 to Ex.A6 by the opposite parties proves the deficiency in service.  

12.    Further the contention of the opposite parties 1 to 3 is that immediately after receipt of the notice from the complainant and the 3^rd opposite party, the opposite parties 1 & 2 rectified the mistake and resubmitted it to the 3^rd opposite party.   But the Memo filed by the 3^rd opposite party at the time of argument with enclosures showing such defects which has not been rectified proves deficiency in service.  Considering the facts and circumstances of the case, if the defects were not rectified there shall be the mistakes in the details of the loan forever.  The opposite parties 1 to 3 has not rectified the defects properly.   Hence, the opposite parties 1 to 3 are directed to rectify the defects regarding the status of loan account, Gender of the complainant and date of birth within one month and to pay a sum of Rs.2,350/- being amount spent by the complainant for obtaining the report from the 3^rd opposite party and to pay a compensation of Rs.25,000/- for mental agony with cost of Rs.10,000/- to the complainant.

In the result, this complaint is allowed in part.   The opposite parties 1 to 3 are jointly and severally liable to rectify the defects regarding the status of the loan account, Gender of the complainant and date of birth within one month and to pay a sum of Rs.2,350/- (Rupees Two thousand three hundred and fifty only) being amount spent by the complainant for obtaining the report from the 3^rd opposite party and to pay a sum of Rs.25,000/- (Rupees Twenty five thousand only) towards compensation for mental agony with cost of Rs.10,000/- (Rupees Ten thousand only) to the complainant.

The above amounts shall be payable within six weeks from the date of receipt of the copy of this order, failing which, the said amounts shall carry interest at the rate of 9% p.a. to till the date of payment.

Dictated  by the President to the Steno-typist, taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Forum on this the 22^nd day of January 2020. 

 

MEMBER                                                                                PRESIDENT

COMPLAINANT SIDE DOCUMENTS:-

Ex.A1	11.04.2011	Copy of credit sanction advice by the 1st opposite party
Ex.A2	09.05.2013	Copy of report given by the 3rd opposite party
Ex.A3	09.09.2013	Copy of report given by the 3rd opposite party
Ex.A4	11.03.2014	Copy of report given by the 3rd opposite party
Ex.A5	22.07.2014	Copy of report given by the 3rd opposite party
Ex.A6	26.09.2014	Copy of report given by the 3rd opposite party
Ex.A7	24.11.2014	Copy of letter sent by the complainant by RPAD
Ex.A8	18.12.2014	Copy of provisional interest certificate by the 1st opposite party
Ex.A9	02.11.2015	Copy of email correspondence with the complainant and the opposite parties

 

OPPOSITE PARTIES’ 1 & 2 SIDE DOCUMENTS:-  

3^RD OPPOSITE PARTY SIDE DOCUMENTS:-  

Ex.B1	20.06.2013	Copy of email of the 3rd opposite party to complainant
Ex.B2	25.06.2013	Copy of email of the 3rd opposite party to complainant
Ex.B3	28.06.2013	Copy of email of the 3rd opposite party to complainant
Ex.B4	13.11.2013	Copy of letter regarding rectified CIR (Credit Information Report)

 

 

MEMBER                                                                                                                                                    PRESIDENT