PRESENT:      Sh.A.K.Sharma, Adv. for complainant

Sh.Ajay Singh Parmar, Adv. for OPs.

                              ---

PER LAKSHMAN SHARMA, PRESIDENT

          Sh.Pritam Singh Meetika  has filed this complaint under section 12 of the Consumer Protection Act, 1986 praying therein that OPs be directed  to  refund the excess amount of interest received by them on the loan amount of Rs.42000/-. The complainant has further prayed that OPs be also directed to pay Rs.50000/- as compensation for harassment and mental agony besides Rs.11000/- as litigation expenses.

2.        In brief, the case of the complainant is that he availed credit card facility of OP-Bank. He also took a loan of Rs.42000/- on 11.02.2006 against the said credit card account. The said loan amount was to be repaid in two years in equated monthly installments of Rs.2065/- per month. According to the complainant, he paid a sum of Rs.50175/- vide receipts (Annexure C-1 to C-14) within 9 months from the date of taking the loan. Thus, he paid interest of Rs.8175/- i.e. @ 42% which is highly excessive and unimaginable.  According to the complainant, he paid a lump sum amount of Rs.31,005/- on 10.11.06 as full and final payment and no amount is due from him. It has further been averred that OPs have received 28% excess interest from him and thus he is entitled to recover the said amount. Subsequently, OPs made repeated telephonic calls to him and raised illegal demand of Rs.19,285.75 P vide demand notice dated 17.12.2008.

          According to the complainant, he wrote a number of letters to OPs for refund of the excess interest. Thereafter, he also served a legal notice dated 28.08.2008 through his counsel upon the OPs seeking refund of excess interest but to no effect. In these circumstances, the present complaint was filed seeking the reliefs mentioned above.

3.        In the reply filed by OPs, it has been pleaded that complainant had taken a credit card bearing no. 00040066610181856 and took a loan of Rs.42000/- on 11.02.2006 which was required to be repaid within 2 years in equated monthly installments of Rs.2065/- per month. It has been pleaded that when OP-Bank has made telephone calls for payment of EMI’s. Thereafter, the complainant deposited EMIS as per the details given below:-

Rs.3000/- on 11/04/2006,

Rs.1330 on 28/04/2006,

Rs.2065/- on 24/05/2006,

Rs.100/- on 25/05/2006,

Rs.2065 on 9/05/2005

Rs.150 on 28/06/2006,

Rs.2165 on 7/07/2006,

Rs.2065 on 12/08/2006,

Rs.2065 on 08/09/2006,

Rs.210 on 05/10/2006,

Rs.2065 on 3/11/2006,

Rs.31005 on 10/11/2006

Total amount Paid : Rs.50175/-

          He paid the above EMIs as per his own convenience. The EMIs were not paid as per the schedule of payment. It has further been pleaded that the payment charges were demanded on the EMIs which were not paid in time or the amount deposited was less than Rs.2065/-. It has further been pleaded that amount of Rs.31005/- deposited by the complainant on 10.11.2006 was adjusted in the loan account of the complainant and the same was not towards full and final settlement of the loan account. It is denied that interest @ 42% interest has been charged. In these circumstances, according to OPs, there is no deficiency in service on its part and the complaint deserves dismissal.

4.        We have heard the learned counsel for the parties and have gone through the entire record including documents, annexures, affidavits etc. 

5.        Admittedly, the credit card bearing No.00040066610181856 was issued to the complainant and the complainant availed a loan of Rs.42000/- on 11.02.2006 which was required to be repaid within 2 years in equated monthly installments of Rs.2065/- each. Thus, the complainant was required to pay a total sum of Rs.49560/- in 2 years which includes the interest for a period of 2 years.

          The complainant paid a sum of Rs.50,175/-  as mentioned above against the amount of Rs.49560/- that too within 9 months required to be paid within 24 months which includes interest also. The amount paid by the complainant is more than the amount required to be paid within 2 years including interest.  The demand of Rs.19285.75 P as late payment charges is not supported by any agreement nor the details of this amount have been given. A sum of Rs.1330/- paid on 28.04.2006 can not be said to be an installment with less amount as a sum of Rs.3000/- was paid on 11.04.2006. A total sum of both these installments is more than the amount due on that day. So the installments, which are of less amount have been paid on 25.05.2006, 28.06.2006 and 05.10.2006 respectively. OP has failed to prove as to how penalty amounting to Rs.19,285.75P for payment of installments with less amount has been worked out.   The copy of the SBI Card Members Agreement has not been placed on record to prove the terms and conditions of the agreement. Furthermore, no statement of account showing as to how the complainant is liable to pay a sum of Rs.19,285.75P in addition to the amount already paid by him has been placed on record.

6.        Admittedly, the complainant has paid a sum of Rs.50,175/-  against the actually payable amount of Rs.49,560/- within a period of 9 months which was actually required to be paid within 24 months which includes the interest also. Thus, the complainant has paid a sum of Rs.615/- in excess to the amount required to be paid in 24 months including the interest. So the complainant is entitled for the refund of the excess amount of Rs.615/-. Not refunding the said amount to the complainant amounts to deficiency in service on the part of OPs.

7.        In view of the above findings, this complaint is allowed with a direction to the OPs to refund a sum of Rs.615/- to the complainant along with Rs.5,000/- as compensation for mental agony and harassment. OPs are also directed to pay a sum of Rs.5,000/- to the complainant as costs of litigation.

8.        This order be complied with by OPs within one month from the date of receipt of its certified copy, failing which OPs shall be liable to refund the aforesaid amount of Rs.5,615/- to the complainant along with penal interest @ 18 p.a. from the date of order till its realization besides costs of litigation.

9.        Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.

Announced

08.01.2010