By Sri. P.Ravindran Member
Brief of the complaint: The Business Executive of the Opposite Party has approached the complainants during November 2003 with tempting promises that their rate of interest is the lowest in the industry and their rate of interest is only 7.5% simple in nature. The complainants have taken a housing loan from Opposite Party and it has disbursed in 2 instalments ie Rs 5,92,064 on 29.11.03 and Rs 1,57,936 on 15.1.04. The rate of interest was 7.5% fixed and the EMI was fixed as Rs 7,914/-. The pre-EMI of Rs 3,701was paid on 31.12.03. Total installments were fixed to 144 months. The complainants have paid EMI till 3.12.07. On 3.12.07 the complainants have enquired about the status of the loan. To the surprise of the complainants it was learned that 143 installments of Rs 7914/- were still there to pay. The Complainants have decided to close the loan. For that they have approached the Union Bank of India Sulthan Bathery branch, which has agreed to take over the loan from Opposite Party. The Union Bank of India also promised to provide education loan to the complainants at the lowest interest rate and to give security to the KSFE Ltd., Sulthan Bathery branch to release the chitty amount to the tune of Rs 12,50,000/-
2. Consequently, the complainants have been required by the Opposite Party to pay a sum of Rs 6,40,000 for the pre-closure of the loan which included Rs 13,290/- as pre-closure charges. Hence the complainants have paid a total sum of Rs 10,27,371/-. The O.P collected 36.9628% of interest on the loan. This is against provisions of loan agreement. Union bank of India Sulthan Bathery Branch sanctioned Rs 6,40,000 /- and the same was paid to Opposite Party on 29-12-07.The Opposite Party was assured that loan documents of the property shall be returned on or before 16.01.08. The Union Bank had advanced the amount of Rs 6,40,000/- on the assurance that the originals will be produced on or before 16.11.08. But the Opposite Party has not returned the property documents on 31.01.08. The Opposite Party was informed that the originals of the documents are lost from their custody and they would recreate those documents. 3. To worsen that situation , the complainants have obtained Rs 2 lakhs from the local money lender in October 2007 for the admission of their son for MBBS course. So the complainants have forced to avail a loan of Rs 6,40,000/- to discharge the liability with Union Bank of India at 10.5% interest rate and Rs 2 lakhs to discharge the liability of local money lender at 13.5% interest rate from Opposite Party. So there is deficiency of service and unfair trade practice committed by Opposite Party. The complainants have issued a lawyer notice to 1st Opposite Party on 10.06.08. Even though the 1st Opposite Party has received the notice he neither replied nor acted upon it. Hence it is prayed to direct Opposite Parties To refund a sum of Rs 52,371/- which is charged as excess interest with 12.5% interest from 29.12.07 till the payment is made.
2. To refund the interest, processing charges and pre-closure amount paid to the Union Bank of India to the tune of Rs 41,288 with 10.5% interest. 3. To pay Rs 7000/- paid to the local money lender 4. To recreate all the title deeds (Except document No: 1704/84) of the property of the complainants after publishing the matter in at least 6 local and National news papers along with a notarized affidavit stating that the ICICI bank is ready to provide all the assistance whenever required. 5. To provide educational loan to the children of the complainants at the lowest rate applicable to the Nationalized bank. Give bank guarantee for the release of the chitty amount Rs 12,50,000/- from KSFE Ltd at the lowest commission rate by 1%. 6. To change 7.5% interest on the existing loan. 7. To allow the complainants to repay the education loan only after 6 months after the completion of the course as done by the nationalized banks. 8. To pay a sum of Rs 8,00,699/- as compensation 9. To pay the cost of the complainant
4. The Opposite Parties entered into appearance and filed version. In the version they stated that the complainants, if they look deep into their own conscience, cannot deny the fact that they have already received more than just and necessary compensation for the fault that occurred on the side of the bank. The Opposite Parties admitted that the documents produced by the complainants were irrecoverably lost. All possible compensatory relief were already enjoyed by the complainants and the bank has offered such relief without any outside pressure or legal intervention. The relief now claimed over and above those offered by the bank are either practically impossible ones or highly excessive or impractical. During November 2003 bank was granting housing loan at the rate of 7.5% per annum. The loan amount was repayable in Equated Monthly Installments(EMI) as per the contract signed by the complainants. Since Nov:2003 there were several revision of interest on housing loan by the Apex Bank and consequently rate of interest of the loan availed by the complainants also had to be revised. Revision of rate of interest has affected not only to the customers of ICICI Bank but the customers of all other financial institutions and banks in this country.
5. Besides paying interest several other charges are also payable by the borrowers of housing loans. The complainants have availed the loan fully knowing about such charges. Apart from those charges special provisions are there for pre-closing of a loan. All charges are imposed on the basis of loan offer letter and loan agreement. The complainant did not have to incur any expenses for availing the special loan of Rs 6,40,000 and Rs 2 lakhs respectively. Waver of the prevailing rate of interest was not with in the powers of the loan sanctioning authority and hence the rate of interest was charged at them on the prevailing rate. The bank was too human with the complainants and readily remedied their grievance. The Opposite Parties strongly deny the allegations regarding deficiency of service. There was no unfair trade practice, on the part of Opposite Parties. Since the rate of interest is flexible any change in the rate of interest made by RBI would reflect in the existing loans also. Rs 6,41,993 was sanctioned at 10.5% interest and Rs 2,00,000/-, was sanctioned , special case, at 13.5 % interest.
6. The Opposite Parties filed two additional versions. In the first additional version the OPs stated that as soon as it was confirmed that the original title deed could not be recovered, offer was made to obtain a certified copy of the lost document and also recreate a fresh document by getting a settlement deed executed by the complainant No.1, in favour of complainant No.2 at the sole expense of the Opposite Parties . In the second additional affidavit filed on 24.10.2009 it is stated that now the original title deed is traced out and produced to the satisfaction of the Forum. Hence it is prayed that the complaint may be dismissed.
7. Considering the complaint and version the following points are to be considered. 1. Whether there is any deficiency in service or unfair trade practice on the part of Opposite Parties? 2. Relief and cost.
8. Point No:1:- To prove complainants case, 1st complainant has filed his proof affidavit. He has also filed Exts.A1 to A22 documents. On verifying the proof affidavit of complaints and evidence of witnesses and the documents produced before the Forum it is clear, that the complainants have availed a loan of Rs 7,50,000/- from Opposite Party. The complainants found that the rate of interest of the Opposite Party is high. So they approached Union Bank of India Sulthan Bathery Branch to take over the present loan from Opposite Party and also for getting education loan for his son’s study. The Union Bank of India Sulthan Bathery branch sanctioned the loan and credited to the loan amount of Opposite Parties with a condition to produce original document of the property pledged before the Opposite Parties. But even though the Opposite Parties accepted the amount they failed to return back the documents to the complainants. Hence they could not produce the same before Union Bank of India. Hence the Union Bank of India demanded the complainants to produce the original documents or to repay the loan amount sanctioned. The complainants tried their level best to get back the documents from Opposite Parties. But the Opposite Parties failed to give back the original documents pledged at the time of availing the loan. At last the complainants were forced to avail loan of Rs 6,41,993/- and Rs 2,00,000/- from Opposite Party. The rate of interest is 12.75%. The Opposite Party has failed to give back the documents produced by the complainant when the loan was closed. It is a deficiency of service on the part of the Opposite Party. Point No.1 is decided accordingly. 9. Point No:2:- It is clear that the complainants were decided to close the loan with Opposite Party because of the rate of interest is so high. So they decided to take loan from Union Bank of India Sulthan Bathery. The Union Bank took over the loan from Opposite Party after paying the entire loan amount to Opposite Parties . The complainants would have got Rs. 6,41,993 at the rate of 8% interest and Rs 2,00,000/- at the rate of 11.75% of interest. Now he has to pay 10.5% and 13.5% respectively. It means that the complainant has to pay nearly One Lakh rupees more to Opposite Party as interest. It is happened only due to the deficiency of service on the part of Opposite Parties. The complainants are entitled to get that amount from Opposite Parties. Since the education loan was not paid by the Union Bank the Complainants have compelled to obtain Rs. 2 Lakhs from the money lender for which they have compelled to pay Rs 7,000/- in addition to the loan amount. They are entitled to get that amount from Opposite Parties. On 24.10.2009 the Opposite Parties. filed an additional affidavit stating that the original title deed is traced out. But failed to trace out other documents which were produced at the time of availing the first loan. So the complainants are entitled to get certified copies of the documents produced at the time of availing the first loan along with a certificate to the effect that the above documents were missing from them. This certificate and documents are to be given at the time of closing the loan by the complainants.
10. It is true that the complainants have suffered a lot for the act of Opposite Parties. So they are entitled to get compensation. We find that the complainants are entitled to get Rs 50,000/- more as compensation and Rs 3000/- as cost of this complaint in addition to Rs.1,00,000/- and Rs.7,000/- towards the variation in interest. Complainant is entitled to get 10% interest for the above amount from the date of filing the complaint till the amount is paid. In the result, the complaint is partly allowed and the opposite parties are directed to pay Rs 1,57,000 (Rupees One Lakh Fifty Seven Thousand only) as compensation and Rs 3,000/- (Rupees Three thousand only) as cost to the complainant. Opposite Parties are also directed to pay 10% interest from the date of filing the complaint till the amount is paid. The order is to be complied within 30 days of receipt of this order. Pronounced in open Forum on this the day of 30th December 2009. PRESIDENT: Sd/-
MEMBER : Sd/-
MEMBER : Sd/-
A P P E N D I X Witnesses for the Complainants: PW1. Alias. Complainant. PW2. Cheriyan. Agriculture, Business. PW3. S. Balan. Manager, Union Bank of India, Sulthan Bathery. Witnesses for the Opposite Parties: OPW1. Biju T.V. Manager, ICICI Bank, Trichur. Exhibits for the Complainants: A1. Copy of Offer Letter. dt:26.11.2003. A2. Copy of Letter. A3. Copy of Letter. A4 (5 sheets) Copy of Statement of Account. dt:21.2.2008. A5 series (10 Pages) Copy of Repayment Schedule. dt:21.4.2008. A6. Certificate dt: 16.10.2007. A7. Certificate dt:25.4.2008. A8. Copy of Documents submitted at Union Bank of India. A9. Certificate. dt:06.10.2007. A10. Copy of Payment Receipt No.O10073941542. A11. Copy of Payment Receipt No.O10074076625 A12. Copy of Letter. dt:31.01.2008. A13. Copy of Letter. dt:03.02.2008. A14. Copy of Letter. dt:22.02.2008. A15. Copy of Letter. dt:26.02.2008. A16. Copy of Letter. dt:14.03.2008. A17. Letter. dt:11.03.2008. A18. Copy of Letter. dt:19.03.2008. A19. Copy of Facility Agreement. A20. Copy of Letter. dt:27.03.2008. A21. Copy of Statement of Account for the period 20.12.2007 to 23.03.2008. dt:24.03.2008. A22. Statement of Account for the period 21.12.2007 to 17.04.2008.
Exhibits for the Opposite Parties: B1. Letter. dt:22.02.2008. B2. Copy of Letter. dt:26.02.2008. B3. Letter. dt:14.03.2008. B4. Copy of Sale Deed B5. Copy of Letter. dt:27.03.2008 B6. Copy of Lawyer Notice. dt:02.04.2008. B7. Copy of Letter. dt:31.03.2008. B8. Copy of Letter. dt:22.04.2008.
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