DISTRICT CONSUMER DISPUTES REDRESSAL FORUM;BHADRAK

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C.D.Case No.61 of 2015

Sri Birendranath Panigrahi, aged about 68 years

S/o: Late Surendranath Panigrahi

At/PO: Apartibindhar New Colony,

Dist:Bhadrak

                                              …………………………Complainant

                 (Vrs.)

The Chief Manager,

UCO Bank, Bhadrak Branch

Bhadrak

                                              …………………………….Opp.Party

Order No.9 dt.28.10.2015:

            The Complainant has filed this case alleging deficiency in service against the O.P. in calculating rate of interest.

            The case of the Complainant in nut-shell is that for improvement of agricultural crop, he incurred a loan of Rs.99,000/- from O.P.-Bank on 18.03.2013. At the time of availing agricultural loan, it was stipulated in the loan agreement that he shall pay @ 7% interest per annum over the incurred loan. However, after one year, the Complainant deposited Rs.1,00,000/- on 18.03.2014 towards loan and assured to debit the balance interest from his S.B.Account No.46 stands in O.P.-Bank. On 15.03.2015 the Complainant from his loan account No.0430061007241 found that the O.P. has demanded Rs.13,036/- towards interest illegally @ 12.2% violating the agricultural loan scheme and the agreement made between them. The Complainant thereafter requested several times to O.P. to provide him a copy of loan agreement and to calculate interest @ 7% as agreed. As the O.P. remained silent, the Complainant filed this case on20.05.2015 praying for a direction to O.P. to calculate interest @ 7% , to provide the statement of loan account and the copy of loan agreement. The Complainant has also claimed compensation of Rs.50,000/- towards mental agony and harassment from the O.P.

            O.P. filed written version stating therein that the Complainant being a bonafide customer of the O.P.-Bank had applied for loan of Rs.99,000/-. Accordingly, the said loan was sanctioned by O.P. in favour of Complainant with rate of interest 12.45% per annum. The Complainant executed the D.P.Note and the letter of continuity. The Complainant also executed the deed of Hypothecation for the said loan. Nowhere the O.P. has agreed to take the interest from the Complainant @ 7% instead of 12.45%/ The O.P.-Bank is a Nationalized Commercial Bank. O.P.-Bank is operating its business as per the guideline of R.B.I.. So the question of collecting the interest excessively does not arise. There is audit system in the Bank and no excessive amount has been claimed from the Complainant for his loan. The Complainant has filed this case on wrong impression. So the O.P. prayed for dismissal of complaint.

            We have heard the Complainant and the Ld.Counsel appearing for the O.P.. The Complainant has filed Xerox copy of Pass Book No.46 and one statement of account from 30.06.2014 to 31.03.2015 of Bank of India, Bhadrak in his name vide account No.535832110000306, Type of loan: Cash credit Agriculture. Similarly, the O.P.-Bank has filed copy of loan application form of the Complainant, sanction letter of loan, D.P. Note, letter of continuity and hypothecation agreement.

            It is submitted by the Complainant that the O.P. has calculated   interest on the availed agricultural loan @ 12.2% which should have been @ 7%. It has been contended by the O.P.-Bank that sanction was made in favour of the Complainant towards loan of Rs.99,000/- with interest @ 12.45% per annum. So the question of collecting excess interest does not arise. While going through the loan application of the Complainant it is found that the Complainant had applied for term loan of Rs.99,000/- for the purpose of land development in Form No. A-116(Revised)C.P.(application for agricultural credit short-term/term loan) of O.P.-Bank.  Loan sanction letter dt.16.03.2013 of O.P.-Bank reveals that loan of Rs.99,000/- was sanctioned  for the purpose of Agriculture(land development) with interest @ 12.45% per annum, repayable in 12 months.  Similarly, copy of Hypothecation-cum-Agreement for Agricultural Loans of O.P.-Bank clearly indicates that the land measuring A 1.39 dec. was hypothecated against loan of Rs.99,000/- availed for the purpose of land development with interest @ 12.45%. It is also found from above documents that the Complainant has put his signature. It has been alleged by the Complainant that the O.P. called  him to his chamber and obtained signatures in different papers, loan documents with an assurance to process the agricultural loan with 7% interest but subsequently filled up the blank Form in his  own hand writing with higher rate of interest. When the Complainant has put his signature in the loan documents, we have nothing to say in this regard. However, one thing is clear that the Complainant had availed agricultural loan of Rs.99,000/- from the O.P.-Bank. By no stretch of imagination it can be said that the rate of interest of 12.45% is charged in any Nationalized Bank under agricultural loan. The Complainant has filed one statement of account in his name obtained from Bank of India, Bhadrak (A/c.No.535832110000306) which goes to show that lower rate of interest has been charged on agricultural cash credit from the Complainant against the loan sanctioned during July,2014. As such, it would meet the ends of justice if the O.P.-Bank be directed to look into the matter if any mistake has been committed in fixing higher rate of interest under agricultural loan. Accordingly, it is ordered:

                                                  O R D E R

            In the result, we direct the O.P.-Bank to reconsider the case of the Complainant; if any mistake has been committed in fixing higher rate of interest under agricultural loan availed by the Complainant and to communicate the result within 30 days of receipt of this order. Parties to bear their own costs.