D.O.F:04/05/2019
D.O.O:28/10/2022
IN THE CONSUMER DISPUTES REDRESSAL COMMISSION KASARAGOD
CC.No.84/2019
Dated this, the 28th day of October 2022
PRESENT:
SRI.KRISHNAN.K :PRESIDENT
SRI.RADHAKRISHNAN NAIR.M : MEMBER
SMT.BEENA.K.G : MEMBER
- Thomas Dsouza,
- Gracy, W/o Thomas Dsouza
Both are R/at “Talent” Seethangoli : Complainants
Ednad Post
Kasaragod Taluk and District
(Adv: M. Mohanan Nambiar)
And
- The Branch Manager
Kerala Gramina Bank : Opposite Party
Puthige Branch.Kasaragod Taluk & Dist.
(Adv:M. Narayana Bhat)
ORDER
SRI.RADHAKRISHNAN NAIR.M : MEMBER
The complaint is filed under section 12 of the Consumer Protection Act, 1986 ( as amended )
The facts of the case in brief is that the complainants obtained a housing loan of Rs.15,00,000/-from Opposite Party in the year 2013, and the above loan amount was disbursed in 3 instalments. At the time of availing loan the complainants have agreed to repay the loan with interest @11.5% per annum by monthly instalments. No other liability has been saddled to them as per the terms of the loan transaction.
On 11.12 2018, the complainant approached the Opposite Party and enquired about the exhorbitant amount charged over and above the amount actually due by them and the Opposite Party bank clerk represented to the complainant that an amount of Rs.27,240/- is charged on various heads like inspection charges, recovery charges and other charges. In fact the complainant did not agree to pay the aforesaid charges and the Opposite Party is not entitled for the same as per law or as per the terms of the loan. The collection of such amount unilaterally is service deficiency on the part of the Opposite Party. Therefore the Opposite Party is liable to refund the above amount of Rs.27,240/- with interest. The complainant approached the Opposite Party and also sent Regd. Registered notice calling upon to refund the above Rs.27,240/-, but the Opposite Party refused to comply with.
Hence this complaint is filed for a direction to the Opposite Party to refund the amount of Rs.27,240/-along with a compensation of Rs.2,00,000/-and costs.
The opposite party entered appearance and filed written Version.
As per the written version of the Opposite Party , the complaint is false, frivolous, vexatious and not maintainable in law or facts and is liable to be dismissed with costs.
The Opposite Party admitted the availing of housing loan of Rs.15,00,000/- by the complainants from the Opposite Party on 26.10.2013 executing necessary agreements and documents as per the loan account No.41715324931813.The complainant have agreed to pay interest at the rate subject to a minimum of 11.5% per annum to be compounded quarterly. They have also agreed to pay overdue interest on the amounts overdue in case of default. The loan amount was agreed to be repaid in monthly instalment of Rs.20,071/- each together with interest at the agreed rate of interest charged to the account to initial repayment holiday of 12 months as shown in the agreement. The first instalment was payable on 26.11.2014 and the subsequent at the same rate on or before the 24 the day of every month. The last instalment shall consist of entire outstanding balance in the loan account. As per the terms of the agreement the Opposite Party is entitled to inspect the property and the progress of the construction and to collect the charges for inspection and other charges and the expenses incurred by the Opposite Party from time to time and the complainants are bound to pay the same to Opposite Party. The Opposite Party is not liable to pay the amount of Rs.27,240/- to the complainants and it was not illegally collected. A sum of Rs.79633/-is due from the complainants in the above loan account as on 08.03.2019. The complainant is also having other loan in the Opposite Party bank and that is also overdue.
There is no service deficiency on the part of the Opposite Party . The complaint is liable to be dismissed with compensatory costs.
The complainant No.1, filed proof affidavit in lieu of chief examination and documents Ext. A 1 to Ext. A 3 are marked . The PW1 was cross examined.
The Ext - A1 is the office copy of the Regd. Notice dated 21-02-2019, Ext - A 2 is the Reply notice dated 22.03.2019, Ext A3 series are 2 Loan ledger extracts dated 27.11.2019.
The opposite party didn't adduce any oral evidence but produced certain documents, which are marked as Ext. B1 to Ext. B7.
Ext B1 is a copy of the Loan Agreement dated 26.10. 2013, Ext.B 2 is a copy of the Stamped Receipt for Rs.4,00,000/- dated 26.11.2013 issued by the complainants. Ext B3 is a copy of the Stamped Receipt for Rs.4,00,000/- dated 04.02.2014 issued by the complainants. Ext B4 is a copy of the Stamped Receipt for Rs.3,00,000/- dated 29.05.2014 issued by the complainants, Ext B5 is a copy of the Acknowledgement of Debt and Security of Borrower/ Co-obligant dated 27.05.2016 signed by the complainants. Ext B6 is a copy of the Acknowledgement of Debt and Security of Borrower/ Co-obligant dated27.06.2018 signed by the complainants, Ext B7 is a copy of the letter of sanction of the loan dated 26.10.2013.
Based on the pleadings and evidence of the rival parties in this case the following issues are framed for consideration.
1. Whether there is any service deficiency on the part of the opposite party?
2. If so, what is the relief?
For convenience, all these issues are considered together.
Here the specific case of the complainants is that they obtained a housing loan of Rs.15,00,000/-from Opposite Party in the year 2013, and the above loan amount was disbursed in 3 instalments. At the time of availing loan the complainants have agree to repay the loan with interest @11.5% per annum by monthly instalments. No other liability has been saddled to them as per the terms of the loan transaction.
But the Opposite Party bank took a total amount of Rs.27,240/- on various heads like inspection charges, recovery charges and other charges. In fact the complainant did not agreed to pay the aforesaid charges and the Opposite Party is not entitled for the same as per law or as per the terms of the loan. The collection of such amount unilaterally is service deficiency on the part of the Opposite Party. Therefore the Opposite Party is liable to refund the above amount of Rs.27,240/- with interest
The Opposite Party submit that as per the terms of the agreement the Opposite Party is entitled to inspect the property and the progress of the construction and to collect the charges for inspection and other charges and the expenses incurred by the Opposite Party from time to time and the complainants are bound to pay the same to Opposite Party. The Opposite Party is not liable to pay the amount of Rs.27,240/- to the complainants and it was not illegally collected. A sum of Rs.79,633/-is due from the complainants in the above loan account as on 08.03.2019. The complainant is also having other loan in the Opposite Party bank and that is also overdue.
The document Ext .B1 is the true copy of the agreement executed and signed by the complainants in favour of the opposite party bank, at the time of availing loan. The clause No.2 of the Ext.B1 reads that “the borrower agrees that the interest shall be calculated on the sum advanced or so much there of that remains unpaid from time to time at the rate of 11.5 % per annum or at such rates as may be fixed by the bank from time to time as per clause 8 hereunder and shall be charged /debited to the loan account at the quarterly rests on 31st March, 30th June 30t September and 31st December in each year. The Borrower further agrees that the interest so charged/debited shall be added to the loan account and shall be treated as principal amount and further interest shall be treated on that sum total”
The clause 8 reads that “(a)Interest, other charges, expenses etc. payable by the borrower/s shall be subject to the changes in the rates of interest, other charges expenses etc. made by the bank from time to time and borrower/s agrees to pay interest ,other charges expenses etc.at such rates fixed by the bank. (b) The notification displayed in the notice board in the bank’s premise regarding change of interest ,other charges expenses etc. from time to time shall be sufficient notice to the borrower and the borrower agrees to pay such interest ,other charges expenses etc.at the rate notified in the Notice board of the bank until all dues are cleared in full and the borrower hereby expressly waives notices of such change/variations.”
The clause 27 of the agreement reads as “The borrower shall allow the Bank’s nominee, servant or agents to inspect the borrower’s house /flat mortgaged/agreed to be mortgaged for ensuring that borrower has duly complied with the terms of advances and also for periodical inspection of property. The bank shall at liberty to furnish to the RBI, National Housing Bank or other financial institution any such information or report in the possession of the bank relating to the loan account”
The opposite party argues that the collection of the amount on various heads like Interest, other charges, expenses etc. from the borrower complainants are not illegal or against the terms and conditions of the loan but it is as agreed by the complainants at the time of availing the loan.
The complainants did not dispute the execution of the agreement at the time of availing the loan and the document Ext.B1 carries the signatures of both of them and it is needless to say that the terms and conditions of the above agreement are binding on them .Therefore the opposite party bank is entitled to collect Interest, other charges, expenses etc. from the borrower complainants as provided by the agreement.
So considering the facts and circumstance of the case, this commission is of the view that the opposite party is dealing with the loan account of the complainant as per terms of the agreement and the complainant failed to establish any service deficiency on the part of opposite parties.
ln the result , the complaint is dismissed without costs.
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
Exhibits
A1- Office copy of the Registered notice Dt: 21/02/2019
A2- Reply Notice – 22/03/2019
A3- Statement of account
B1- Copy of the loan agreement Dt: 26/10/2013
B2 to B4- Copy of Stamped receipts
B5 & B6 - Copy of the Acknowledgment of debt and security borrower/co- obligant
B7- Letter of sanction of the loan dt: 26/10/2013
Witness Examined
Pw1- Thomas Dsouza
Sd/- Sd/- Sd/-
MEMBER MEMBER PRESIDENT
Forwarded by Order
Assistant Registrar
Ps/
