By Sri.  A.S. Subhagan,  Member:

          This is a complaint filed under Section 12 of the consumer Protection Act 1986.

          2. Facts of the case in brief:-  The  1^st  Opposite Party is doing banking  service and liable to act as per the guidelines of the government.  The 2^nd   Opposite Party is the controlling   authority of the 1^st  Opposite Party to give instruction and  the Complainant is residing in the jurisdictional area of the 1^st  Opposite  Party.  For the purpose of  starting a unit for the manufacturing bio-gas plant, as a self employment enterprise  under  the “Ente Gramam Scheme”  of the government of  Kerala and as per the sanction No. W3/953/2013 dated 05.03.2013, the Complainant had availed  a loan of Rs.1,80,000/- as per loan Account No.21115125000113 from  the 1^st  Opposite Party bank on 27.05.2013, which was to be repaid in 60 monthly instalments.  Rs.60,000/-  being the margin money,  before getting the  second instalment on 20.09.2013 had  received as per cheque  No.151171 on 06.09.2013 by the  1^st   Opposite Party from the District Office of the  Khadi and Village Industries,  Kalpetta.   The margin money of Rs.60,000/-  was supposed to be kept in a special TDR Account and was to be accounted to the loan account  after two years of  availing the loan.  As per  the direction of the RBI,  interest was  neither to be charged nor paid for the margin money.  But, violating  the  guidelines of the RBI, the 1^st  Opposite Party without keeping the margin money  separately,  charged interest,  penal interest and other charges and on 30.09.2016,  the margin money was accounted in the loan account and  on maturity of the period of loan, the 1^st  Opposite Party  levied  interest on the  total loan of Rs.2,03,076/-  + margin money of Rs.60,000/-  totalling  Rs.2,63,076/-  and on 18.06.2018, the loan account was closed.  The 1^st  Opposite Party has charged Rs.14,605/- by way of interest, compound interest and other charges without crediting the margin money, violating the guidelines of the RBI.  The  Opposite Parties had  no such right to do so.  The Opposite Party has not returned the documents of the property which were given as security for the loan,  to the Complainant.  The 1^st  Opposite Party has not given even a reply to the Complaint given to them by the Complainant nor has  returned the documents, till date.  Moreover,  the  1^st Opposite Party has not refunded the excess amount charged by them.  Hence this complaint with prayers.

1.  To direct the 1^st Opposite Party to refund the excess amount of  Rs.14,605/- charged, with 18% annual interest.
2. To direct the 1^st Opposite Party to return the documents given as security for  the bank loan.
3. To direct the Opposite Parties to pay Rs.50,000/-  as compensation for unfair trade practice/ deficiency in service and
4. To direct the Opposite Parties to pay Rs.10,000/-  as cost of this complaint.

3. Notices were served on the Opposite Parties for appearance.  They appeared

before the  Commission and filed version.

          4. Contents of version in brief:-  The Opposite Party admitted the loan of Rs.1,80,000/-   (with the margin money of  Rs.60,000/-) dated 06.09.2013 availed by the Complainant.  They  have also admitted that as per the norms of the “Ente Gramam Project”,  the margin money of Rs.60,000/- was to be kept apart in a separate account  for two years from the date of  first withdrawal of the  loan and after that,  it could be transferred to the loan account of the Complainant.  But it was able to be transferred to the loan account only after getting intimation from the  Wayanad Khadi & Village Industries Office.  Such  intimation was received by the  Opposite Party only after three years on 30.09.2016 and  on the basis of this intimation, on  30.09.2016 itself, the margin money of Rs.60,000/- was  transferred  to the  loan account.  An amount of Rs.29,610/- charged in respect of the margin money as interest  and penal interest was credited to the  account of the Complainant at the time of closing of the loan.  This  was happened  as the accounts of the  bank were connected to the  computer software and therefore,  at the time of closure of the loan,  the amount of Rs.29,610/-  was credited to the  account of the Complainant. So,  the 1^st  Opposite Party has not charged any amount as interest and penal interest on the margin money of the Complainant.  The 1^st Opposite Party has not charged  any amount without considering the RBI guidelines.  Though the Opposite Party was ready to return the documents,  the Complainant was not ready to receive them.  An amount of Rs.14,605/-  or any other amount have not been  charged  from the  Complainant.  There has not been any deficiency in service on the part of the Opposite Party and therefore,  the Opposite Party is not liable to pay any amount to the Complainant towards compensation, cost or any other item.  Hence, the  Opposite Party submitted  to dismiss the complaint with compensatory cost.

          5. Affidavit was filed by the Complainant,  Exts. A1 to A5 were marked from his  side and he was examined as PW1.   Joint affidavit as filed on behalf of the   1^st and 2^nd  Opposite Parties by the   1^st  Opposite Party,  Exts.B1 and B2 were marked from their side  and  the Branch Manager of the 1^st  Opposite Party was examined as OPW1.  Considering  the complaint, version, affidavits, documents marked, oral evidences adduced by the  parties and the arguments of  counsels of the parties in hearing,  we raised the following points for consideration:-

1.  Whether  there has been deficiency in service on the part of the Opposite Parties?
2. Relief and cost.

6. Point No.1 and 2:-  For  convenience and brevity, both the  points are

considered together:-

          The  date of availing of the loan,  the amount of loan,  margin money,  closure of loan etc are admitted facts.  The allegation of the Complainant is that the Opposite Party bank,  violating the  RBI guidelines,  without crediting the margin money after two years of the  first withdrawal of loan amount to the  loan account,  charged interest and penal interest and thereby caused a loss of Rs.14,605/-   to the  Complainant and did not handed over the documents of the property given as security for the loan to the Complainant, even after closure of the loan.  On the  other hand,  the contention of the 1^st  Opposite Party is that they have not  violated the RBI guidelines.  So as to credit the amount of margin money of Rs.60,000/-  to the loan account of the Complainant on expiry of two years after the  first withdrawal of the loan account,  they  had to get intimation from the  District Office of the  Khadi and Village Industries Office.  They got this intimation only  on 30.09.2016  and  on that day itself they had credited the margin money to the loan account of the loanee.  As the accounts of the Opposite Party were connected  with  computer software,  they had charged Rs. 29,610/-  as interest and penal interest which have been credited  to the account of the Complainant at the time  of closure of the loan account and therefore,  ultimately no excess amount has been levied from the Complainant by way of interest and penal interest and therefore,  there has been no deficiency in service on their part and as such they are not liable to pay compensation, cost etc to the Complainant.  On verification of Ext.A3, it is seen that  “the Existing norms of   “Ente Gramam Scheme”,  interest should not be charged on margin money portion and corresponding loan amount as per  guidelines  of RBI”.  As per  Ext.A3 permission was granted by the  2^nd Opposite Party to the 1^st  Opposite Party to convert the TDR of margin money assistance of the Complainant  as grant on the outstanding loan account.  But Ext.A3 document is seen undated  for which the  both the Opposite Parties are responsible.  In cross  examination of witness,  OPW1 has admitted that “R§Ä¡v  60,000/þ  cq]-bpsS sN¡v 06.09.2013 XobXn sh¨v 06.09.2013 \v R§Ä¡v e`n-¨n-«p-­v.  Fsâ {Kmaw ]²Xn {]Imcw  margin money  Bbn e`n-¡p¶ XpIbv¡v ]eni CuSm-¡mt\m ]eni sImSp-¡mt\m ]mSn-söpw AXv  lien Bbn R§Ä kq£n-t¡-­-Xp-am-Wv.  06.09.2013 \v  tijw A¡u-­n-ep-ff apgp-h³ XpIbv¡pw ]eni IW-¡m-¡n-bn-cp-¶p.  1,80,000/þ \pw 60,000/þ cq]  Ipd-¨p-ff 1,20,000/þ  cq]bv¡pw thtd thtd ]en-i-bm-Wv.  60,000/þ cq] DÄs¸-sS-bp-ff   apgp-h³ XpI-bv¡p-amWv ]ng ]en-ibpw ]en-ibpw IW-¡m-¡n-bn-cn-¡p-¶-Xv.  Ext.A5  {]Imcw Fsâ {Kmaw ]²Xn hy-hØ  A\p-k-cn¨v  margin money  Ipd¨  kwJy IW-¡m     -¡n-bp-ff   calculation statement Dw I¯pw ]cm-Xn-¡m-c³  OP 1 \v \ÂIn-bn-cp-¶p.  AXn\v adp-]-Sn-sbm¶pw R§Ä sImSpt¯m F¶v Adn-bn-Ã.  60,000/þ  cq]  deposit Bbn _m¦n-ep-­v.  AXv lmP-cm-¡nb tcJ-I-fn ImWn-Ã.  Hcp tcJ-bnepw       ImWn-¡msX apgp-h³ XpIbv¡pw ]eni CuSm-¡n-bn-cp-¶p F¶v tNmZn-¨m CuSm-¡n-bn-«p-­v.

          7. Question from the Commission and answer given by  1^st  Opposite Party in  examination of OPW1.

Qu. 1 -   1,80,000/þ  cq]-bv¡mtWm  RBI guideline  {]Imcw  ]eni     CuSm-¡n-bn-

          «p-f-fXv?.

An.       AsX.

Qu. 2 -    Norms A\p-k-cn¨v 1,20,000/þ  cq]bv¡v am{Xta ]eni IW-¡m-¡m-hq?

An.       AsX.

Qu. 3 -    Compound sNbvXmtWm  interest CuSm-¡n-bn-«p-f-f-Xv?

An.        AsX.

Qu. 4 -    AX-S¡-amtWm Xncn-¨p-sIm-Sp-¯n-«p-f-f-Xv?

An.        AsX.

8. The above depositions of the 1^st  Opposite Party is sufficient to prove that there has been deficiency in service/unfair trade practice from the part of the  1^st  Opposite Party.  The fact that the excess amount of Rs.29,610/-  charged by the 1^st  Opposite Party  by  way of interest and penal interest has been returned to the Complainant by crediting it to the  account of the Complainant is a different thing to escape from the deficiency in service/ unfair trade practice committed   by the Opposite Parties  and  hence that contention of the  1^st Opposite Party could not be accepted.

9. Another allegation of the  Complainant is that the 1^st  Opposite Party has not returned the documents  of the property given as security for the bank loan,  to the Complainant.  On the other hand, the contention of the 1^st  Opposite Party is that they were ready to give back the documents,  but the Complainant was not ready to receive them. This contention of the Opposite Party could not be accepted as there  were many options in this regard to the  1^st  Opposite Party.  Either they could send a registered letter intimating the Complainant to accept the documents or they could return the documents,  after closure of the loan by registered post.  None of these options  were utilised by the 1^st  Opposite Party but  withheld the documents of the Complainant  indefinitely  under the custody of the  1^st  Opposite Party which is also deficiency in service.  Being the agency who allotted the margin money to the 1^st  Opposite Party,  the 2^nd  Opposite Party was duty bound to ensure that the margin money allotted to the 1^st  Opposite Party was credited to the loan account as per the RBI guidelines to  safeguard the benefit of the  Complainant.  The 2^nd  Opposite Party has not acted as such,  instead the Ext.A3 document issued by them to the 1^st  Opposite Party was an undated one.  This  inaction  and misaction from  the part of the  2^nd  Opposite Party is  also deficiency in service.  Therefore,  deficiency in service is proved from the part of the 1^st  and 2^nd  Opposite Parties for which they are liable to compensate the complaint.  So, point number one  and two are in favour of the Complainant,  but the compensation and cost claimed by the Complainant are seen  exorbitant.  In our view  the Complainant has a right to get compensation of Rs.12,000/- for  deficiency in service and Rs.6,000/-  as cost of this complaint. 

10. As conflicting  evidences are produced by the Complainant and the 1^st  Opposite Party, regarding the amount of interest and penal interest to the  account  of the Complainant and as the loan account is closed and  credited  the excess amount charged by way  of interest and  penal  interest to the account of the Complainant,   which is evident from Ext.A2 document,  we  are not making any order as to the excess amount charged by the 1^st  Opposite Party.

In the result,  the complaint is partly allowed and the 1^st and  2^nd  Opposite Parties are ordered:-

1. To pay Rs.12,000/-  (Rupees Twelve thousand only) as compensation for deficiency in service to the  Complainant.
2. To pay Rs.6,000/-  as cost of this complaint to the Complainant and
3. To return all the documents submitted before the 1^st  Opposite Party, as security for the loan, to the  Complainant, by the  1^st  Opposite Party, within two weeks of receipt of this order.

The  amounts  ordered  as  compensation  and cost as above shall be paid by  

the 1^st  and 2^nd  Opposite  Parties in the ratio of  2:1 respectively, within one  month from the date of receipt of this order, to the Complainant,  failing which,  the amount will carry interest at the rate of  8% per annum from the date of this order.

          Dictated to the Confidential Assistant, transcribed by him and corrected by me and pronounced in the Open Commission on this the 31^st  day of December 2022.

          Date of filing:12.09.2018.                                                                

                                                                     PRESIDENT (I/C) :  Sd/-

                                                                     MEMBER            :   Sd/-

APPENDIX.

Witness for the complainant:

PW1.                    Babu  P. V.                               Complainant.

Witness for the Opposite Parties:

OPW1.                  Gokulnath Menon. K.              Bank Manager,  KGB, Vakery.

Exhibits for the complainant:

A1.         Loan Pass Book.

A2.         Pass Book.

A3.         Copy of Letter.                   

A4.        Copy of  Letter.                    dt:06.09.2013.

A5.       Copy of Letter.                      dt:04.07.2018.

Exhibits for the Opposite Parties:

B1.      Interest Application Report.

B2.      Account Statement.           

                                                                                                                PRESIDENT (I/C):  Sd/-

                                                                   MEMBER            :  Sd/-