DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II U.T. CHANDIGARH Complaint Case No.: 1438 of 2009 Date of Inst: : 11.11.2009 Date of Decision:18.11.2010 Prem Kumar Verma s/o Late Sh.Girdhari Lal r/o H.No.3129, Sector 28-D, Chandigarh. ..…Complainant V e r s u s 1. The ICICI Bank Ltd., Regd. Office “Landmark”, Race Course Circle, Vadodra, Gujarat-390007 through its M.D. 2. The ICICI Bank Ltd., Home Loan Branch, SCO No.174-176, Ist Floor, Madhya Marg, Sector 9-D, Chandigarh through its Branch Manager. ..…Opposite Parties QUORUM SHRI LAKSHMAN SHARMA PRESIDENT SMT.URVASHI AGNIHOTRI MEMBER SHRI ASHOK RAJ BHANDARI MEMBER PRESENT: Sh.Vineet Sehgal, Adv. for complainant Sh.Sandeep Suri, Adv. for OPs. --- PER LAKSHMAN SHARMA, PRESIDENT Prem Kumar Verma has filed this complaint under section 12 of the Consumer Protection Act, 1986 seeking the following reliefs:- i) Refund of foreclosure charges of Rs.1,63,170/- along with interest @ 24 p.a. from 14.03.2008 till realization. ii) Rs.50,000/- as compensation for mental torture and harassment etc. iii) Rs.11000/- as litigation expenses. 2. In brief, the case of the complainant is that he availed two house loan for an amount of Rs.75 lacs and Rs.29 lacs vide loan agreement dated 31.01.2004 and 17.02.2005 respectively. He was regularly paying the loan installments without any default. Thereafter, he approached the Bank for prepayment of the loan amount against the said two loan accounts. According to the complainant as per the statement issued by Ops, he was asked to pay the foreclosure charges of Rs.1,14,850.60P and Rs.48,320.48 @ 2.25% (totaling Rs.1,63,170/-) on the outstanding principal amount which were paid by him on 14.03.2008 under protest. According to the complainants, the charging of foreclosure charges @ 2.25% on the outstanding principal amounts is against the terms and conditions of loan agreements and he was not liable to pay the same. The complainant made requests vide letters dated 20.04.2008 and 12.01.2009 for refund of the pre-payment charges but to no effect. Ultimately the complainant served a legal notice dated 12.06.2009 but to no avail. In these circumstances, the present complaint has been filed seeking the reliefs mentioned above. 3. In reply filed by OPs, the factum of advancement of the loan and the schedule of repayment has been admitted. It has further been pleaded that as per the sanction letter, it was agreed between the complainant and the OPs that in case the complainant wishes to close the loan prior to the last date fixed for payment of the last equated monthly installment, the complainant shall pay a prepayment charges of 2% on account prepaid including the amount prepaid in last one year. In these circumstances, the amount of Rs.1,63,170/- as pre-payment charges @ 2.25% towards the loan accounts has been rightly charged from the complainant. So there is no deficiency in service on their part and the complaint deserves dismissal. 4. We have heard the learned counsel for the parties and have gone through the entire record including documents, Annexures, affidavits etc. 5. The only dispute between the parties is with regard to foreclosure charges of Rs1,63,170/- towards the two loan accounts. Annexure C-1 and C-2 are the loan agreements executed between the parties regarding the payment of loan amounts. Clause 2.7 of the said agreement is relevant for the purpose of disposal of the complaint which reads as under:- 2.7: Pre-payment of ICICI Bank LOAN ICICI Bank may, in its sole discretion and on such terms as to pre-payment charges, etc., as it may prescribe, permit prepayment/acceleration in payment of EMIs at the request of the BORROWER, subject that ICICI Bank may specify, from time to time. the minimum amount of prepayment/amounts payable on account of acceleration of EMIs. In the event ICICI Bank permits any prepayment/acceleration, the repayment schedule for the Loan shall be amended/altered by ICICI Bank for giving effect to such prepayment/acceleration, and such amended/altered repayment schedule shall be binding upon the BORROWER. In case if any amount is prepaid by the BORROWER, the same shall be adjusted first towards the incidental charges, additional interest, PEMII. EMI outstanding, EMI of current month and balance towards the principal amount of the ICICI Bank LOAN. In the even! of prepayment, the amortisation schedule shall be effective from first day of the subsequent month. ICICI Bank at its sole discretion may permit swap of the post-dated cheques for re-scheduling of EMI only if such minimum amount, as may be decided by ICICI Bank from time to time is prepared. 6. Relying upon the said clause in the loan agreements, it was argued vehemently by the learned counsel for the OPs that OPs are entitled to charge pre-payment charges @ 2.25% as per the terms and conditions of the loan agreements agreed between the parties. The said terms and conditions regarding pre-payment charges @ 2.25% according to the learned counsel are mentioned in the sanction letter which has been reproduced in para No.1 of the preliminary objections of the written reply. It is pertinent to mention here that that in the loan agreements mentioned above, there is no clause requiring payment of pre-payment charges @ 2.25%. It is well settled law that the contents of the document can be proved only by producing the document itself. Any reference of such terms and conditions in the written statement has no sanctity in the eyes of law. As the sanction letter has not been placed on record, there is nothing on record to prove that any agreement was arrived at between the parties regarding charging of pre-payment charges @ 2.25%. So OPs have illegally charged a sum of Rs.1,14,850.60P and Rs.48,320.48 (totaling Rs.1,63,170/-) from the complainant as pre-payment charges @ 2.25% which amounts to deficiency in service. 7. In view of the above findings, this complaint is allowed with a direction to the OPs to refund total amount of Rs.1,63,170/- charged from the complainant as pre-payment charges @ 2.25% along with interest @ 9 % p.a. from date of deposit i.e. 14.03.2008. The OPs are also directed to pay a sum of Rs.7,000/- to the complainant as litigation expenses. 8. This order be complied with by the OPs within 45 days from the date of receipt of its certified copy, failing which the OPs shall be liable to refund the aforesaid amount i.e. Rs.1,63,170/- to the complainant along with penal interest @ 18% p.a. from the date of its deposit i.e. 14.03.2008 till its realization besides costs of litigation. 9. Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room. Announced 18.11.2010 Sd/- (LAKSHMAN SHARMA) PRESIDENT Sd/- (ASHOK RAJ BHANDARI) MEMBER Sd/- (MADHU MUTNEJA) MEMBER
C.C.No.1438 of 2009 PRESENT: None. --- Arguments heard. The case was reserved for orders. As per separate detailed order of even date, this complaint is allowed. After compliance file be consigned. Announced. 18.11.2010. Member President Member
| | MR. A.R BHANDARI, MEMBER | HONABLE MR. LAKSHMAN SHARMA, PRESIDENT | MRS. MADHU MUTNEJA, MEMBER | | 
