As per Hon’ble President. Mr. Atul Alshi.

1. The complainant has filed complaint for excessive and arbitrary charging of interest on loan amount without notice and thereby claiming return of excess loan installment paid Rs.37,189/- by complainant and thereby claiming compensation for mental loss   Rs.2,00,000/- and alongwith cost of litigation. 

The complainant is residing at Gondia took loan from OP for construction of house at Tirora. The complainant and his wife was a co-borrower for the loan account bearing no. LBGON00000886300 of Rs.2,00,000/- dt.21.09.2004 as per loan agreement against floating rate of interest 7.25% p.a. for repayment of Rs.2084/- monthly installments of 144. The complainant started paying installment 2138/- from 15.03.2005 to 08.10.2007. The tenure for repayment of loan has not been mentioned as per term and condition. The complainant has paid installments 153 installments instead of 144 and OP’s increased no. of installments without intimation and unlawfully. It is held many cases that it is in incumbent for the bank to inform individually change of interest and option to the used for type of interest. After many request, notices OP failed to correct the statement of account and to excess payment there is deficiency of service. OP liable to refund the excess amount Rs.37,189/- alongwithcompensation and cost.

3. The OP No. 1 & 2 filed reply and submitted that as per loan agreement the complainant agreed and assured to pay principal amount with interest with floating rates and also agreed to pay 24% p.a. interest on their outstanding as per loan agreement. The term of repayment 144 months with equated monthly installment of Rs.2,084/- per month. If the complainant had availed the subject loan on fixed rate of interest the period of repayment 144 months but due to change rule of interest as per Reserve Bank and the no. of installment has been changed and there is no negligence on the part of the OP therefore, present complaint deserves to be dismissed with cost.

4. Both the parties argued the case on merit at length. After hearing of case the following points arose for consideration.

POINTS                                                            FINDINGS

1. Whether the complainant is consumer ?                      Yes.
2. Whether there is deficiency in service on the part of OP?    No.    
3. 3)  What order ?                              As per final order.

                             REASONING

5. Point No. 1 to 3 - The complainant availed loan facility from OP No.2 for Rs.2,00,000/- vide loan a/c no. LBGON00000886300 as per terms and conditions of loan agreement. The initial repayment of loan whether Rs.2084/- equated monthly installment for the period of 12 year i.e. 144 months by calculating fixed rate of 7.75 p.a. The complainant obtained floating rate of interest therefore the rate of interest on loan is being changed as per change of mandatory policy of Reserve Bank of India in respect of interest on loan. The terms and conditions of loan agreement and option opted from complainant as per offer letter therefore there is no negligence on the part of OP in respect of recovery of loan. Therefore, case is dismissed and no order has been passed towards cost.  

ORDER

1. The complaint is dismissed with no order as to cost.
2. Copy of the order shall be given to both the parties, free of cost.