BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM<br /> VAZHUTHACAUD : THIRUVANANTHAPURAM<br /> <br /> PRESENT :<br /> <br /> SHRI. G. SIVAPRASAD : PRESIDENT<br /> SMT. BEENA KUMARI .A : MEMBER<br /> SMT. S.K. SREELA : MEMBER<br /> <br /> O.P.No. 19/2003 <br /> Dated: 30..07..2008<br /> Complainant:<br /> <br /> N. Sreeraman Potty, Palottu Madom, Thekkevila – P.O., Kollam – 691 016.<br /> <br /> (By Adv. Sri. R. Gireesh Babu)<br /> <br /> Opposite parties:<br /> <br /> 1. The Branch Manager, Ind Bank Housing Ltd., PB No.209, TC.No.26/190, 1st Floor, Home Links Buildings, Thiruvananthapuram – 695 001.<br /> <br /> 2. The Company Secretary, Ind Bank Housing Ltd., Corporate Office, 480 11nd Floor, Annasalai, Nandavan, Chennai – 600 031.<br /> <br /> (By Adv. Sri. P. Krishnankutty Nair)<br /> <br /> This complaint is disposed of after the period so specified under the Consumer Protection Act, 1986. Though the case was taken up for orders by the predecessors of this Forum on 18..08..2004 the order was not prepared accordingly. This Forum assumed office on 08..02..2008 and re-heard the complaint. This O.P having been heard on 15..07..2008, the Forum on 30..07..2008 delivered the following:<br /> <br /> ORDER<br /> <br /> SHRI. G. SIVAPRASAD,PRESIDENT :<br /> <br /> The facts leading to the filing of the complaint are that complainant availed a housing loan from the 1st opposite party for an amount of Rs. 72,000/- on 08..06..1992. The said loan has to be repaid with interest at the rate of 16% per annum in 108 monthly installments of Rs.1,282/- each. Complainant had paid the installments regularly and a total amount of Rs. 1,37,976/- has been remitted. Meanwhile, 2nd opposite party demanded the complainant to pay insurance premium amount of Rs. 279/-. Complainant remitted the said premium amount on 09..06..1997. Complainant had remitted the entire loan amount in 108 installments and approached the 1st opposite party to get back the documents pledged with the opposite parties, but the opposite parties insisted the complainant to remit one more installment to which complainant heeded and paid. Even after remitting the said amount the 1st opposite party neglected to release the title deeds to the complainant. Finally on enquiry opposite parties intimated the complainant that opposite parties have been debited insurance premium to complainant's account from the year 1992 – 2000 amounting to Rs. 2,431/-. Opposite parties did not inform the complainant about the insurance premium earlier. Opposite parties did not realise the insurance premium for the year 1992 - 1996 from the complainant. Opposite parties were responsible to keep complete account of the customer, opposite parties never sent any notice to the complainant for realising insurance premium. Opposite parties never released the title deeds deposited by the complainant even after the repayment of the entire loan amount. Hence this complaint claiming refund of 109th installment of Rs.1,282/-, Rs.279/- towards insurance premium, the release of title deeds deposited by the complainant in connection with the said loan, compensation of Rs. 15,000/- and cost of the complaint.<br /> <br /> 2. Opposite parties entered appearance and filed version contending that complainant availed housing loan of Rs.72,000/- from the 1st opposite party branch of the 2nd opposite party on executing loan document, hypothecation agreement, demand promissory note and by deposit of original title deeds in respect of the property. The said loan amount with interest at the rate of 16% per annum at an equated monthly installments of Rs. 1,282/- commencing from the date shown in the loan documents for 108 months has to be paid regularly without any default on due dates. Besides payment of equated monthly installments, the borrower has to insure the building for the beneficial interest of the opposite parties. And on failure thereof opposite parties are to insure the building at the expense to be claimed and realised from the complainant, as per the agreement executed by the complainant in favour of opposite parties. It is true that the complainant paid 108 installments but defaulted installments attracted interest to be realised from the defaulter. Complainant did not arrange for insurance of building that he mortgaged with the opposite parties. Opposite parties having insured the building, the premium so paid by the opposite parties has to be borne and paid to the opposite parties by the complainant. Additional amount of Rs. 279/- is related to payment of insurance premium that resulted due to the failure of the complainant in not insuring the building and in fact the complainant did not pay 109th installment as averred in the complaint. The said amount was paid towards over due interest and insurance premium. Now an amount of Rs.2,152/- is to be paid by the complainant towards loan account which is inclusive of unpaid insurance amount. All allegations in the complaint are denied. The loan transaction is purely a contract in nature and hence only Civil Court has jurisdiction to entertain the complaint of the present nature. Hence the title deed in respect of the mortgaged property shall be returned only on payment of the balance amount together with cost of this proceedings being incurred by the opposite parties.<br /> <br /> 3. The points that would arise for consideration are:<br /> <br /> (i) Whether complainant is entitled for refund of Rs.1,561/- (Rs. 1,282 + Rs. 279) from the opposite parties?<br /> <br /> (ii) Whether complainant is entitled to get released the title deeds from the opposite parties?<br /> <br /> (iii)Whether there has been deficiency in service on the part of opposite parties?<br /> <br /> (iv) Reliefs and Costs?<br /> <br /> 4. To support the contention in the complaint, complainant has filed an affidavit of himself as PW1 in lieu of examination in chief and marked 12 documents as Exts. P1 to P12. On behalf of opposite parties, Branch Manager, Kumara Pillai has filed an affidavit. Opposite parties did not file any document. <br /> 5. Points (i) to (iv): Admittedly, the complainant availed housing loan of Rs. 72,000/- from the 1st opposite party branch of the 2nd opposite party company. Ext.P3 is the copy of the letter dated 08..06..1992 issued by the opposite parties to the complainant. As per Ext. P3 a loan of Rs.72,000/- was sanctioned by the opposite parties to the complainant. The said loan with interest at the rate of 16% per annum would be repayable in 108 equated monthly installments (9 years) of Rs.1,282/- without any default on due dates. Submission by the complainant was that complainant had already paid installments regularly and a total amount of Rs. 1,37,976/- had remitted. In the meantime 2nd opposite party demanded the complainant to pay insurance premium amounting to Rs. 279/-, which was seen remitted by the complainant on 09..06..1997 as per Ext. P1. The grievance of the complainant is that after remitting the entire 108 installments, complainant approached the 1st opposite party to get back the documents pledged by the complainant but opposite parties insisted the complainant to remit one more installment which the complainant paid on 09.10..2001 by way of Ext. P2. Submission by the complainant is that opposite parties collected 109 installments from him instead of 108 and even after the remittance of 109th installment, opposite parties did not release the documents pledged by the complainant. Narrating this complainant sent a letter dated 26..11..2001 to 2nd opposite party which is marked as Ext. P4. Ext. P5 is the letter dated 29..11..2001 issued by the 2nd opposite party acknowledging the receipt of Ext. P4. As per Ext.P6 letter dated 21..01..2002 issued by the 1st opposite party, 1st opposite party requested the complainant to call on him in person during office hours for further discussions. As per Ext.P7 letter dated 16..02..2002 2nd opposite party requested the complainant to settle the balance outstanding as informed by the 1st opposite party. Again on 12..02..2002 complainant sent a letter to 2nd opposite party by way of Ext. P8 requesting him to instruct the 1st opposite party to release the pledged documents. Ext.P9 is the copy of another letter dated 25..02..2002 addressed to 2nd opposite party informing him that the matter would be taken up with the Consumer Forum if the documents pledged not released. The 2nd opposite party in its letter dated 27..02..2002 marked as Ext. P10 again requested the complainant to settle the balance outstanding so as to enable the 1st opposite party to proceed further on complainant's request. In response to Ext.P10 complainant sent a letter dated 06..03..2002 by Ext.P11 requesting 1st opposite party to inform the outstanding balance in the account with details for further proceedings in the matter. In response to Ext.P11, 1st opposite party informed the complainant that by Ext.P12 dated 09..03..2002 1st opposite party had debited insurance premium to complainant's account from the year 1992 to 2000 amounting to Rs. 2,431/- out of which 1st opposite party had received only Rs.279/-. In this regard, 1st opposite party requested the complainant to remit the outstanding amount of insurance premium with up-to-date interest to enable the 1st opposite party to close the account and release the documents. At this juncture, it is pertinent to note that, complainant had already remitted the loan amount with interest, the amount still to be remitted as claimed by opposite parties is with regard to insurance premium. Submission by opposite parties is that the complainant availed housing loan of Rs. 72,000/- from 1st opposite party on executing loan agreement, hypothecation agreement, demand promissory note and by deposit of original title deeds in respect of property. Opposite parties did not produce the loan agreement to substantiate their claim with regard to the insurance premium, nor did send any notice to the complainant for realising insurance premium. Further, submission by the complainant is that the opposite parties did not realise the insurance premium for the year 1992 – 1996 from the complainant. It was only in the year 1997, as per Ext.P1 opposite parties charged Rs. 279/- towards insurance premium. Though the said amount of Rs. 279/- was remitted in the year 1997, complainant never challenged the same till the filing of this complaint. After the lapse of 6 years from the date of remittance of Rs. 279/- towards insurance premium, complainant claimed the refund of the said premium amount remitted, which is time barred. Complainant claims to have remitted 109th installment as per Ext.P2, but nowhere in Ext.P2 is it mentioned as 109th installment. Hence the complainant cannot claim the refund of Rs.1,282/- remitted as per Ext. P2, first point is found against the complainant. Loan amount already paid by the complainant. No notice is seen issued by opposite parties demanding insurance premium from the complainant from 1992 to 2001, nor housing loan agreement produced by the opposite parties before this Forum to substantiate the claim with regard to insurance premium. No material on record to show that opposite parties have remitted insurance premium of the complainant. In the absence of evidence on record, demand of insurance premium by the opposite parties is illegal and improper. It is established that the title deeds were given to the bank in good faith for taking loan from it and considering the bank would be the safest place for keeping such title deeds. The said title deeds was not returned to the complainant. Release of title deeds cannot be withheld by opposite parties when entire loan amount repaid by the complainant. Opposite parties are liable to return the title deeds to the complainant. Delay in releasing the title deeds even after the repayment of the entire loan amount would amount to deficiency in service on the part of opposite parties. Deficiency in service is proved.<br /> <br /> In the result, complaint is allowed in part. Opposite parties are directed to return the title deeds deposited by the complainant in connection with housing loan. Opposite parties shall pay an amount of Rs.2,000/- (Rupees two thousand only) towards compensation for deficiency in service and Rs. 1,000/- (Rupees One thousand only) towards cost to the complainant. Opposite parties shall comply the order within two months from the date of this order, failing which the above said amounts shall carry interest at the rate of 12%.<br /> <br /> <br /> A copy of this order as per the statutory requirements be forwarded to the parties free of charge and thereafter the file be consigned to the record room.<br /> <br /> Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the open Forum, this the 30th day of July, 2008.<br /> <br /> <br /> G. SIVAPRASAD, PRESIDENT.<br /> <br /> BEENA KUMARI. A : MEMBER<br /> <br /> <br /> S.K. SREELA : MEMBER<br /> <br /> <br /> <br /> ad.<br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> O.P.No.19/2003<br /> <br /> APPENDIX<br /> <br /> I. Complainant's witness: NIL<br /> <br /> II. Complainant's documents: <br /> <br /> P1 : Photocopy of receipt No.45952 dated 09..06..1997 issued by the opposite party. <br /> P2 : Photocopy of receipt No.000747 dated 9.10.2001 issued by the 1st opposite party.<br /> P3 : Photocopy of letter dated 8.6.1992 issued by the 1st opposite party.<br /> P4 : Photocopy of letter dated 26..11..2001 issued by the complainant to the 2nd opposite party P5 : Photocopy of letter dated 29..11..2001 issued by the 2nd opposite party. P6 : Photocopy of letter dated 21..1..2002 issued by the 1st opposite party. P7 : Photocopy of letter dated 18.2.2002 issued by the 2nd opposite party. P8 : Photocopy of letter dated 12..2..2002 issued by the complainant to the 2nd opposite party. P9 : Photocopy of letter dated 25.02.2002 issued by the mplainant to the 2nd opposite party<br /> <br /> P10 : Photocopy of letter dated 27.02.2002 issued by the 2nd opposite party. P11 : Photocopy of letter dated 6.3.2002 issued by the complaiannt to the 1st opposite party. P12 : Photocopy of letter dated 9.3.2002 issued by the 1st opposite party.<br /> <br /> III. Opposite parties' witness: NIL<br /> <br /> IV. Opposite parties' documents: NIL PRESIDENT.<br />