Haryana

Ambala

CC/214/2015

Harpal Singh - Complainant(s)

Versus

The Manager Citi Bank - Opp.Party(s)

G.S.Sullar

24 Dec 2015

ORDER

BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, AMBALA.

 

Complaint Case No.:214 of 2015

Date of Institution  : 06.08.2015

Date of decision     :  24.12.2015

 

Harpal Singh son of Shri Chanan Singh resident of House No.2052/A, Opposite Gurudwara, Tagore Garden,Naraingarh Road, Ambala City.

 

                                                                                                            ……Complainant

Versus

1.         The Manager Citi Bank, SCo No.132, 133 & 134, Madhya Marg, Sector-9, Chandigarh.

2.         The Managing Director, Citi Bank, N.A., Ground Floor, Club House Road, Chennai-600002.

                                                                                                ……Opposite Parties

Complaint Under Section 12 of the Consumer Protection Act

CORAM:        SH. A.K. SARDANA, PRESIDENT.

                        SH. PUSHPINDER KUMAR, MEMBER.                       

Present:          Sh. G.S. Sullar, Adv. counsel for complainant.

                        Sh. Mehar Singh, Adv. counsel for Ops.

ORDER.

                        Brief facts of the present complaint are that complainant obtained a loan from OP vide loan account No.A4K4986778353 for purchasing  the vehicle  which was registered vide Regn. No.HR01-P-1000 and was under hypothecation with OP Bank. It has been alleged that  complainant cleared all the installments of the above-said loan to the OPs and accordingly, they issued  NOC & Form No.35 on 26.03.2015 to the complainant.  It has been further alleged that  the Ops intentionally & deliberately for harassing the complainant  listed his name in Credit Information Bureau  (India) Ltd. (CIBIL) showing that  the loan of the complainant is still pending.  The complainant submitted a written application to the Ops with a prayer to delete his name  & account number  from the list of loanee as well as to CIBIL  but of no avail which is a deficiency in service & unfair trade practice on the part of Ops.  It has been further contended by the complainant  that he approached State Bank of India, Baldev Nagar, Ambala City for advancing a loan but they showed their inability to advance EDFS loan to him because his name is in CIBIL list.  Thus the complainant has prayed  that the Ops may be directed to delete his name from the list of loanee as well as CIBIL and provide other reliefs as mentioned  in the prayer clause of the complaint.  

2.                     Upon notice, Ops appeared through counsel and filed written statement raising preliminary objections qua non-maintainability of complaint on the ground of suppression of material facts & barred by Law of limitation. On merits, it has been urged that in the month of October 2002, the complainant  started committing defaults in repayment  of the aforesaid loan amount and thereafter till May 2004, he was irregular in making payments of his EMIs despite reminders by the Ops.  However, in the month of May 2004, Ops offered one time settlement to the complainant for closure of his loan account by depositing a sum of Rs.2,96,000/-  in one installment which was duly accepted by the complainant and pursuant to the same, amount of Rs.2,96,00/- was deposited by the complainant in the month of May 2004 qua his loan account with the Ops. Accordingly, on receipt of the said payment from the complainant, his loan account was closed  by the Ops as “Settled Post Write Off” with NIL outstanding.  Furthermore, as desired and requested by the complainant, the Ops also issued NOC alongwith Form 35 in favour of complainant.   It has been further submitted by the Ops that merely because the complainant had settled his loan account with the Ops, his status as a defaulter cannot be changed and as such being a defaulter, complainant cannot allege deficiency in service on the part of Ops and thus his credit records pertaining to the impugned loan account had been updated as “settled post write off’ with the CIBIL and accordingly prayed for dismissal of complaint with costs.

3.                     To prove his case,  complainant tendered his affidavit as Annexure C-X alongwith documents as Annexures C-1 to C-8  in his evidence and closed the same whereas OP’s counsel tendered affidavit of one Jagmohan Singh, authorized  signatory of OP Bank as Annexure R-X and closed evidence on behalf of Ops.

4.                     We have heard learned counsel for the parties and gone through the record very carefully. At the very outset, it is admitted fact on record that  OP Bank itself offered one time settlement to the complainant for closure of his loan account by depositing a sum of Rs.2,96,000/- in one stretch and thereafter, they issued NOC & Form No.35 regarding clear  of loan and deletion of hypothecation respectively   in the R.C. of vehicle No.HR01P-1000 vide documents (Annexures C-3 to C-6) wherein it has been specifically mentioned that “NOC implies that you have cleared all your dues”.  Further perusal of document Anenxure C-2, it reveals that  the complainant approached State Bank of India, Baldev Nagar, Ambala City for EDFS Loan of Rs.72.00 lacs in July 2015 but the bank intimated the complainant that  “they are unable  to process his EDFS loan because  during checking of his CIBIL report, it is observed that status of one of your auto loan for Rs.601277/- opened on 18.09.2002 is shown as Post (WO) settled.”

                        Now, the main grievance of the complainant is that as per Annexure C-7 (CIBIL Consumer Credit Information Report), his name is listed with CIBIL  as a result of which the complainant is suffering a lot  while dealing with other banks which is neither justified nor legal in the eyes of law because  after getting cleared all dues from complainant by the OP Bank, it is not justified from the mouth of Ops that the status  of complainant as defaulter cannot be changed especially  when they have shown NIL outstanding against the Loan Account of complainant in their records. Further, the offer of one time settlement was given by the OP Bank itself and not by the complainant.  So, in these circumstances, putting the name of complainant on CIBIL list by OP Bank is not only an example of unfair trade practice on the part of OP Bank rather a deficiency in service on their part.

                        In view of the facts discussed above and evaluating the documents placed on record, we have come to the conclusion that the Ops are not only deficient in providing proper services to the complainant rather they have played unfair trade practice with him despite clearance of loan by the complainant and thus the OP Bank have wrongly dragged the name of complainant in CIBIL despite NIL outstanding against him resulting into lowering his reputation in the society.  Accordingly, the present complaint is allowed  and Ops are directed to comply with the following directions within thirty days  from the communication of this order:-

1. To get deleted the name of complainant from CIBIL list (Central Information Bureau  (India) Limited).
2. And to pay a sum of Rs.10,000/- on account of compensation for harassment and mental agony.
3. Also to pay a sum of Rs.5,000/- as litigation charges.

 

                                    The aforesaid directions must be complied with by the Ops within the stipulated period otherwise the awarded amounts shall fetch  simple interest @ Rs.12% per annum for the period of default and complainant shall be entitled to invoke the provisions of C.P. Act for implementation of the said order.  Copies of this order be sent to the parties concerned free of costs, as per rules. File after due compliance be consigned to record room.

 

ANNOUNCED: 24.12.2015                                                              Sd/-  

                                                                                                (A.K. SARDANA)

                                 PRESIDENT               

                                                                                              

 

                                                                                                      Sd/-

(PUSHPENDER KUMAR)  

                                                                                                 MEMBER