Karnataka

Gadag

CC/6/2016

Basappa.K.Bellad - Complainant(s)

Versus

The Manager, KVG Bank - Opp.Party(s)

B.B.Maagdi

21 Jan 2017

ORDER

JUDGEMENT DELIVERED BY

SMT.C.H.SAMIUNNISA ABRAR, PRESIDENT:

The complainant has filed this Complaint against the Opposite Parties (herein after referred in short as OPs) u/s 12 of Consumer Protection Act, 1986 seeking direction to OP to refund the excess amount in a sum of Rs.82,222/- from 15.07.2015 with interest at 18% p.a., till realization, Rs.4,00,000/- towards mental agony and physical agony, cost of litigation and other reliefs deems fit under the circumstances of the case.

 

2.    The brief fact of the case is that the Complainant is permanent resident of Gadag and he owns agricultural land at Jantli Shirur village, Tq: Mundaragi, Dist: Gadag. He was having a financial transaction with OP No.1. On 18.07.2007, he availed an agricultural loan of Rs.2,00,000/- from OP No.1 bearing Account No.VKCC-89003479690. OP No.1 converted agricultural loan of the Complainant which bears the account No.890364849932 without informing the Complainant, the Complainant had not signed agreement for the conversion of loan account. The Complainant had regularly repaid the loan amount for existing loan account number, but on 21.07.2008, the OP No.1 had received an amount of Rs.82,554/- credited to converted loan account, totally OP No.1 had received Rs.3,14,222/- towards the loan.

 

3.      At the time of sanction of the loan, the OP had agreed an interest at the rate of 4% p.a. but the OP No.1 had collected the interest at the rate of 14% p.a. The Complainant had alleged that the OP No.1 had collected an excess amount from the Complainant illegally by which Complainant had faced mental and physical problems. Hence, Complainant had claimed Rs.2,00,000/- towards mental agony and excess amount collected by OP along with interest at the rate of 18% p.a. 

 

4.      After receipt of notice, OP No.1 has appeared before this Forum through his counsel and filed Written Version. OP No.2 has not appeared even after sufficient time was given he remained absent.

Brief facts of the Written Version of OP No.1:

The OP No.1 had denied that complaint is not maintainable either in law or on facts of the case. The OP No.1 had alleged that the agricultural loan is a special loan wherein bank charges 04% interest p.a., subjected to the payment of loan amount within a stipulated period of one year. If the entire loan amount is paid within a period of one year, the Government will pay 03% p.a. interest as subsidy, in case of failure, the Borrower has to pay 14% interest p.a. as per the terms and condition of the Agreement.

 

5.      Further, OP submitted that the Complainant failed to repay the loan amount within the stipulated time of one year for that the Complainant is not entitled for the special benefit granted by the Union Government, the OP had collected normal (12% + 2% O.D.) is = 14% interest p.a. from the Complainant, as he is defaulter in terms of repayment of special agricultural scheme.

 

6.      Further, OP submits that in case of failure of repayment of loan within a stipulated period the OP reserve his right to convert the loan account, vide Circular of NABARD. The loan has been converted into crop loan, the Complainant had breach the conditions of agreement hence the Complainant is not entitled for any benefits as alleged in the Complaint. Hence, OP prays to dismiss the case with costs. 

7.      By way of evidence, the complainant has filed his affidavit and filed 22 documents which are marked as EX C1 to C22 in support of his case. The documents are as follows:

EX C1	Certified copy of Loan Agreement,
EX C2	Certified copy of Statement of Account No.VKCC 89003479690,
EX C3 & C4	Certified copy of converted crop loan Statement Account No.89036484932
EX C5	Certified copy of Deed of Guarantee,
EX C6	Certified copy of Annexure
EX C7 & C8	Certified copy of Declaration
EX C9	Certified copy of Application for Crop Loan,
EX C10 & C11	Certified copy of particulars of loan
EX C12	Certified copy of Schedule
EX C13	Certified copy of Particulars of Tools/Machinery,
EX C14 to C16	Certified copy of Property Extract (RTC)
EX C17	Certified copy of Gram Namuna – 8 (A),
EX C18 & C19	Certified copy of Declaration,
EX C20	Copy of Legal Notice,
EX C21	Two Postal Receipt and Two Postal Acknowledgement,
EX C22	Reply Notice issued by Ops

  

 On the other hand, OP1 filed his affidavit of The Manager, Sri.Pundalik Pai by way of evidence and filed one document Circular in respect of guidelines to Agricultural Loan which is marked as EX OP1. Another document which had been produced by the OP during his argument i.e. Intimation Letter.

8.      On the basis of above said pleading, oral and documentary evidence, the following points arises for adjudications are as follows:   

1.   2.	Whether the Complainant proves that OPs have made un-trade practice?   Whether the Complainant is entitled for the reliefs as sought?
3.	What Order?

 

Our Answer to the above points are:-

Point No.1 –  Negative,

Point No.2 –  Negative,

Point No.3 – As per the final order.

                

R E A S O N S

     9.  POINT NO.1 and 2:  Since both the points are inter-link and identical, we proceed with both the points together.

 

          10.    The Complainant availed an agricultural loan of Rs.2,00,000/- from OP No.1 on 18.07.2011. The Complainant had alleged that the OP No1 had converted the said loan to crop loan for which OP received an interest at the rate 12% p.a. This is an undisputed fact the same had been admitted by the OP No.1. After carefully scanning the documents produced by the OP, in his bank statement it is clear that the Complainant had failed to repay the loan amount with interest within a stipulated period.

 

          11.    As per the Circular of the NABARD, Agricultural loan is a special loan with subsidized interest subjected to the condition that the entire loan amount along with the subsidized interest should be paid within a stipulated period of one year. Otherwise, the loan will be converted into crop loan which carries a normal interest at the rate of 12% p.a. plus O.D. 2% p.a. As such the Complainant had failed to repay the entire loan amount within a stipulated time of one year. As such, the OP had converted the agricultural loan of the Complainant to crop loan and collected the normal interest @ of 12% p.a. and 02% O.D. interest. Such being the fact, the Complainant is not entitled for subsidized interest at the rate of 03% p.a. because the Union Government which pay 03% interest p.a. subsidy interest for the prompt repayment. Even the Complainant had agreed the condition while availing the loan on 18.07.2011 and signed an agreement as such Complainant had breach the terms and condition of the agreement. Hence, the Complainant is not entitled for any relief. Hence, we answer the Point No.1 and 2 in negative.   

 

12.   POINT NO.3: For the reasons and discussion made above and finding on the above points, we proceed to pass a following:  

//ORDER//

1. This Complaint is dismissed. No order on cost.
2. Send the copies of this Order to the parties free of cost.

 (Dictated to the Stenographer, transcribed by him, corrected and then pronounced by me in the Open Court 21^st day of January, 2017)

                       

 

Member

President