DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION, PALAKKAD
Dated this the 20th day of April, 2023
Present : Sri. Vinay Menon V., President
: Smt. Vidya A., Member
: Sri. Krishnankutty N.K., Member Date of Filing: 23/11/2020
CC/150/2020
Muhammed Ilyaash A.R.
S/o.V.Abdul Rahman,
1/393, Kalathil, Arampadam,
Tattamangalam, Palakkad - Complainant
(By Adv. N.R.Mahadevan)
Vs
- The Karur Vysya Bank Ltd.,
Krishna Towers, HPO Road,
10/259(9), Vellan Street,
Sultanpet, Palakkad – 678 001
Rep.by its Manager
- The Chairman,
M/s.Karur Vysya Bank Ltd.,
Corporate Office, No.20,
Erode Road,
Vadivel Nagar,
LNS, Karur, Tamilnadu – 639 002 - Opposite parties
(O.P.s by Adv.G.Ananthakrishnan & K.B.Priya)
O R D E R
By Sri. Vinay Menon V., President
- Complaint pleadings, abridged, are that the complainant, a beneficiary of a financial assistance provided by the opposite party bank, settled the financial assistance which was classified as NPA on 5/11/2019. Thereafter no steps were taken by the opposite parties to have the CIBIL score of the complainant altered to reflect closure of loan account. Due to this failure, ICICI Bank refused Financial Assistance for a business venture worth Rs. 2.40 crores, causing huge losses to the complainant. The complainant’s application for loan submitted before ICICI bank was rejected for the sole reason that his score was not updated in the database of CIBIL by the opposite party bank. Aggrieved thereby, this complaint is filed.
- The opposite parties filed version reputing complaint pleadings. They stated that they had taken all steps to communicate the closure of loan account to CIBIL. They strongly contested the allegation that Banks refused to finance the complainant due to non-updation of his loan account details with the CIBIL by the opposite party bank and sought for dismissal of complaint.
- The following issues arise for consideration:
1. Whether the O.P.s had intimated closure of loan account to CIBIL on time?
2. Whether refusal of ICICI Bank to finance the business venture of complainant was due to alleged non-updation of CIBIL score by the O.P.?
3. Whether there is any other deficiency in service or unfair trade practice on the part of the O.P.?
4. Whether the complainant is entitled to any reliefs sought for?
5. Any other Reliefs?
4. (i) Complainant filed proof affidavit and marked Exts. A1 to A11. Marking of Exhibits A2 to A6 were objected on the ground they were e-mail communication unaccompanied by S. 65B certification. Exts. A7 to A9 were objected to on the ground that they were photocopies.
Since this Commission is not bound by the straitjackets of Indian Evidence Act and in the absence of any objection that the said Exhibits, which were objected to, were forged or concocted, said objections are over-ruled and Exhibits are taken in evidence.
(ii) O.P. filed proof affidavit and Exts. B1 to B5 were marked.
5. For easy reference, dates relevant for adjudicating the issues are arranged hereunder in chronological order.
Sl. No. | Date | Particulars | Remarks |
1. | 26/10/2019 | Communication to ICICI Bank | Seeks Financial Assistance(Ext. A7) |
2 | 29/10/2019 | MOU with a 3rd party. | Nil |
3. | 05/11/2019 | Loan closed | Admitted fact |
4. | 30/11/2019 | Loan closure intimation by O.P. to CIBIL | Exts. B3 & B4. |
5. | 20/08/2020 | Complaint before CIBIL | Vide contents of Ext. A2. Complaint is numbered as CDS 28082020002240. Copy of this complaint is not produced. |
6. | 28/08/2020 | Communication from CIBIL | Status not changed (Ext. A2) |
7. | 04/09/2020 | Communication from CIBIL | Status not changed and pending with O.P. (Ext. A3) |
8. | 12/09/2020 | Communication from CIBIL | Status not changed and pending with O.P. (Ext. A4) |
9. | 21/09/2020 | Communication from CIBIL | Status not changed; details of dispute are shown. (Ext. A5) |
10. | 22/09/2020 | Communication from CIBIL | Status not changed; details of dispute are shown. (Ext. A6) |
Issue No.1
6. Admitted case of the parties insofar as it relates to closure of loan account is that the account was closed on 05/11/2019. The only dispute pertains to the date on which the fact of closure was intimated to CIBIL.
7. 1. Complainant relies of Exts. A2 to A6 communications issued from the CIBIL to the complainant to show that the O.P. Bank has failed to update/alter the status of the complainant in the CIBIL records. Contents in Exts. A2 to A6 show that the status of complainant is unaltered and directs the complainant to contact the Credit Institution – Karur Vysya Bank.
Complainant harps that the non-alteration of the status of complainant’s rating relates to non-intimation regarding closure of loan accounts by the O.P.
2. O.P.s stoutly contests these averments and relies on Exts. B3 and B4 communications wherein it is shown that closure of loan was informed to CIBIL as early as 30/11/2019. Ext. B5 goes to prove that at present the CIBIL records show that the loan was closed.
The complainant has not taken any steps to disprove the case of opposite parties evidenced by Exts. B3 to B5.
8. At this juncture it would be relevant to vivisect Exts. A2, A5 and A6. They are communications issued by the CIBIL to the complainant. The gist of the nature of disputes raised by the complainant in each is scheduled hereinbelow:
Sl. No. | Exhibit | Date | Dispute raised before CIBIL | Remarks |
1. | A2 | 28/08/2020 | ‘Does not belong to me’(complainant) | |
2. | A5 | 21/09/2020 | - Amount overdue to be changed to 0.
- Current Balance to be changed to 0.
- Date closed to be changed to 01/11/2019
| Dispute(3) seeks to change date of closure to 01/11/2019 |
3. | A6 | 22/09/2020 | 1. Date closed to be changed to 01/11/2019 2. Current Balance to be changed to 0 3. Amount overdue to be changed to 0. | Dispute (1) seeks to change date of closure to 01/11/2019. |
9. A perusal of Exts. A5 and A6 communications would show that one of the demands of the complainant before CIBIL (and subject matter of dispute in this complaint) was to change date of closure from 05/11/2019 to 01/11/2019.
It is also relevant at this juncture to note that the complainant has not produced his complaint dated 20/08/2020 filed before the CIBIL. This failure on the part of the complainant has forced us to resort to the contents of Exts. A2 to A6 to come to a conclusion regarding the complainant’s plea before the CIBIL.
What the complainant is aggrieved by, as can be perceived by the documents adduced, is the non-alteration of date of closure of loan account from 05/11/2019 to 01/11/2019. The complainant, in his pleadings as well as by marking Ext. A1 on his side to substantiate his case, unequivocally admit that date of closure of the account was 05/11/2019. As per Exts. A5 and A6, the complainant seeks change of date of closure of account to 01/11/2019 from 05/11/2019. When his attempts failed, he turns around and resort to this malicious stand against the O.P.
10. Thus we conclude that the Bank has proved that they had already intimated the actual date of closure, 5/11/2019, to CIBIL as early as 30/11/2019.
Issue No. 2
11. This issue, in view of the findings in Issue no. 1 is only moot. The complainant has not produced any documents to prove the reason for repudiation of application for loan sanction by ICICI Bank. There are no bonafides in the case of the complainant in raising the allegation against the O.P. for losing his business.
This issue also has to be held against the complainant. We do so.
Issue Nos. 3 & 4
12. Apropos the findings above, we hold that there is no deficiency ion service on the part of the O.P. The complainant is not entitled to any of the reliefs sought for.
Issue No.5
13. From the discussions in paragraphs 8 and 9 and the conclusion in paragraph 10, it is clear that the complainant has filed a complaint before the CIBIL seeking change of date of closure of loan account from 05/11/2019 to 01/11/2019. This complaint was numbered as CDS 28082020002240. It can reasonably and safely be presumed that the complainant is not blind to the fact that what he seeks is change of date illegally (Or at least in variance to the actual date of closure as reflected in the documents) and in contradiction to facts wilfully. When such attempt failed to succeed, he has filed this complaint against the O.P. Bank which had dutifully met its end of the deal.
14. We are of the opinion that the conduct of the complainant is illegal and an attempt at unjust enrichment. What the complaint lacks in bonafides, it makes-up in malice and spite.
15. Hence we impose a cost of Rs. 2,00,000/- (Rupees Two lakhs only) on the complainant payable to the O.P.1 Bank.
The complainant is directed to pay this amount within 45 days from the date of receipt of a copy of this order failing which the complainant shall pay a solatium of Rs.250/- per month or part thereof till the date of final payment.
Pronounced in open court on this the 20th day of April, 2023.
Sd/-
Vinay Menon V
President
Sd/-
Vidya.A
Member
Sd/- Krishnankutty N.K.
Member
APPENDIX
Exhibits marked on the side of the complainant :
Ext.A1 – Copy of closure letter dated 6/11/2019
Ext.A2 – E mail communication dated 28/08/2020
Ext.A3 – E mail Communication dated 4/09/2020
Ext.A4 - E mail communication dated 12/9/2020
Ext.A5 – Email Communication dated 21/09/2020
Ext.A6 – Email communication dated 22/9/2020
Ext.A7 – Copy of communication dated 26/10/2019
Ext.A8 – Copy of MOU dated 29/10/2019
Ext.A9 – Copy of sales and purchase contract dated 25/2/2020
Ext.A10 series – Lawyers notice dated 18/9/2020 alongwith postal receipts and AD cards
Ext.A11 – Original reply notice to Ext.A10 notice
Exhibits marked on the side of the opposite party:
Ext.B1 – Copy of Standard Operating Procedure
Ext.B2 – Original of loan closure letter
Ext.B3 – Email communication dated 19/12/2019
Ext.B4 - Email communication dated 12/1/2021
Ext.B5 – Copy of CIBIL report of complainant
Court Exhibit: Nil
Third party documents: Nil
Witness examined on the side of the complainant: Nil
Witness examined on the side of the opposite party: Nil
Court Witness: Nil
NB : Parties are directed to take back all extra set of documents submitted in the proceedings in accordance with Regulation 20(5) of the Consumer Protection (Consumer Commission Procedure) Regulations, 2020 failing which they will be weeded out.
