BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI Dated this the 30th day of November, 2009
Present: SRI.LAIJU RAMAKRISHNAN PRESIDENT SMT.SHEELA JACOB MEMBER SMT.BINDU SOMAN MEMBER
C.C No.128/2009 Between Complainant : Johny Augustine, Thengumpallil House, Ottalloor P.O, Karimkunnam, Idukki District. (By Advs: Jose Thomas & V.C.Sebastian) And Opposite Parties : 1. The Manager, Syndicate Bank, Head Office, Manipal – 576 104. Karnataka State. 2. The Branch Manager, Syndicate Bank, Thodupuzha Branch, Thodupuzha P.O, Idukki District. (Both by Advs: P.J.Kurian & M.M.Lissy)
O R D E R SRI.LAIJU RAMAKRISHNAN(PRESIDENT)
Complainant availed an agricultural loan of Rs.3 lakhs from the opposite party bank on 23.03.2007 for cultivating pineapple as No.SK.CC 19/2007. At the time of availing the loan, the opposite party convinced that the interest for the loan is 7%. But on 12/02/2009 when the complainant repaid Rs.1,11,040/- to the opposite party bank, it is revealed that the interest was calculated as 16%. Not even a single notice was served to the complainant about the increase of the interest rate. The complainant filed an application to the 2nd opposite party stating that the interest recovered by the opposite party is more than 7% as per the details issued on 9.03.2009. But nothing was done after receiving the application by the opposite party. The opposite party unanimously increased the interest rate of the loan availed by the complainant for small scale pineapple cultivation, no notice or information was given to the complainant about the increase of the interest rate, the opposite party assured 7% interest at the time of availing the loan. So the petition is filed against the deficiency in service of the opposite party and also for getting the original sale deed and other documents pledged in the bank at the time of availing the loan.
2. As per the written version of the 2nd opposite party, it is admitted that the opposite party has sanctioned a short term loan(Crop Loan)OD/SKCC–No.SKCC 19/07) of Rs.3 lakhs on 23.03.2007 for pineapple cultivation with a condition to renew every year and close the same within 3 years. The above loan to the complainant was sanctioned as per the guidelines of Reserve Bank of India regarding Short Term Crop Production Credit upto Rs.3 lakhs to farmers at interest rate of 7% per annum with effect from Khariff and Rabbi 2006-2007. Under the above category loan upto Rs.3 lakhs is sanctioned for short term crops to farmers for a maximum period of 3 years and the farmers availing the loan have to bring to credit the loan account once in a year during crop harvesting season and to close the account within 3 years. If a farmer defaults in repaying the amount he is not eligible for the 7% and the bank is entitled to charge interest at the Prime Lending Rate and over due interest at 2% over and above the PLR. At the time of sanctioning the loan, the complainant who is an educated man was well informed about the above conditions and fully agreeing the above conditions, he executed the loan papers. It is mandatory that the farmers availing the loan under the above scheme for eligibility of 7% have to tender application for renewal of agricultural credit under SKCC after repaying the amount with interest every year. In the present case the applicant did not bring to credit his loan account after availing the loan amount and did not file the renewal application required to be filed under the scheme. This fact is clear from the loan account in the name of the complainant. The complainant who is working in a Co-operative bank is fully informed of the SKCC scheme of the opposite party bank and after fully understanding various aspects of the scheme, the complainant executed the loan papers and availed the loan. The amount appearing in the loan account of the complainant as Rs.1,11,040/- as on 12.02.2009 is the amount credited by Agricultural Department to his loan account as subsidy of his pineapple nursery and the actual amount due from him was Rs.3,68,551/-. The bank has charged interest only at the applicable rate and the bank is entitled to charge the above amount as per norms, since the complainant has defaulted in bringing the loan account to credit before 23.03.2008. At the time of issuing letter dated 9.03.2009 by the complainant, more than Rs.2,50,000/- was due from the complainant, there was no whisper regarding payment of the above amount and hence the above letter deserves no reply. In the present case there occurred a mistake in calculating the interest due from the complainant during the period from 23.03.2007 to 31.03.2008. Instead of applying 7% as rate of interest for the above loan during the period from 23.03.2007 to 31.03.2008 interest is calculated at PLR applicable at that time. Finding the mistake the interest for the period 23.03.2007 to 22.03.2008 is recalculated at the rate of 7% and accordingly an amount of Rs.23,388/-is to be deducted from the interest amount apportioned towards loan account of the complainant for the period 23.03.2007 to 22.03.2008. The matter is already intimated to the complainant by the 2nd opposite party by registered letter. However the complainant is bound to pay interest for the loan amount from 23.03.2008 at the PLR prevailing during the above period. From 23.03.2008 onwards the complainant is bound to pay interest at the Prime Lending Rate of banks plus penal interest at 2% over and above the PLR at half yearly rest. He is eligible to get the documents pledged to the bank only on clearing the above dues to the 2nd opposite party. The complainant is a defaulter and more than Rs.2.5 lakhs is due from him under the above loan account. So there is no deficiency in the part of the opposite party and the petition may be dismissed. 3. The point for consideration is whether there was any deficiency in service on the part of the opposite parties, and if so, for what relief the complainant is entitled to ?
4. The evidence consists of the oral testimony of PW1 and Exts.P1 to P4 marked on the side of the complainant and the oral testimony of DW1 and Exts.R1 to R7 marked on the side of the opposite parties. 5. The POINT :- The complainant availed a loan of Rs.3 lakhs from the opposite party bank for the cultivation of pineapple. At the time of availing the loan, the opposite party assured that the interest rate of the loan as 7%. But after that, the opposite party unanimously increased the interest rate to 16% without giving any notice to the complainant. The complainant is examined as PW1. The statement of accounts of the loan is marked as Ext.P1. When the interest rate was unanimously increased by the opposite party, the complainant filed a petition before the opposite party bank and copy of the same is marked as Ext.P2. Ext.P3 is the certificate issued from the opposite party bank stating that the loan amount sanctioned to the complainant is for pineapple nursery. The loan pass book is marked as Ext.P4. PW1 signed all the papers to the bank at the time of availing the loan. PW1 availed crop loan from the opposite party which was through a special scheme from the Krishi Bhavan. PW1 was producing tender pineapple trees. The loan was to be repaid after 3 years. The complainant was not aware of the loan renewal. The opposite party never told to the complainant that the loan was to be renewed in every year. The scheme of the loan was for 3 years. The opposite party was examined as DW1. The circular dated 20.06.2006 issued from the Head Office of the opposite party is marked as Ext.R5. The circular dated 27.12.2003 from the Canara Bank declaring the rate of interest with effect from 1.01.2004 is also produced by the opposite party. Ext.R1 is the loan application of the complainant. Ext.R2 is the interview-cum-Assessment Form for Short Term Loan/Overdraft of the complainant. The application for renewal of agricultural Credit for SKCC is marked as Ext.R4. In Ext.R2, it is written as 7th clause that the loan to the complainant was to be renewed in every year. The renewal form is issuing to every applicant when they comes for the payment. No other intimation is giving by the bank for the renewal of the loan.
The broad guidelines of the Short Term Crop Production Credit upto Rs. 3 lakhs to farmers at interest rate of 7% per annum is written in circular No.129/2007-BC-PSCD-14 dated 13.06.2007 issued from the Head office of the opposite party bank and which is marked as Ext.R6. The summary of interest calculation of the complainant's loan is written in Ext.R7 and which was given to the complainant.
PW1 deposed that he was not aware of the renewal of the loan in every year. At the time of availing the loan the opposite party assured 7% interest for the loan. But they increased the interest rate unanimously because the complainant never renewed the loan after one year. The complainant was not aware of the renewal of the loan but as per the cross examination of the learned counsel for the opposite party, the complainant admitted that he is an Accountant in Co-operative Bank. He has signed in all the papers to the bank at the time of availing the loan. He signed in Ext.R1, application for the loan in which the complainant agreed for all the conditions of the bank in the availed loan. Under the above category loan upto Rs.3 lakhs is sanctioned for short term crops to farmers for a maximum period of 3 years and the farmers availing the loan have to bring to credit the loan account once in a year during crop harvesting season and to close the account within 3 years. If a farmer defaults in repaying the amount he is not eligible for the 7% and the bank is entitled to charge interest at the Prime Lending Rate and over due interest at 2% over and above the PLR. Moreover, the complainant never paid any amount to the opposite party bank after availing the loan. As per the complainant, he has paid Rs.1,11,040/- to the opposite party bank but when cross examined, the complainant admitted that it is a subsidy amount which was entered in the loan account of the complainant. So the complainant is a defaulter of Rs.2,50,000/- in the loan account.
So we think that the complainant who is an Accountant working in a Co-operative Bank and he ought to have enquired about the scheme and repayment conditions of the bank at the time of availing the loan. It is not a reason that the complainant was not aware of the renewal of the loan every year, so he avoided the repayment of the loan. The subsidy issued from the Government has been accounted with the dues of the complainant and the bank is entitled to get nearly 2.5 lakhs from the complainant. The complainant never paid any amount to the opposite party bank after availing the loan and now there is a huge amount is due to the opposite party bank. The complainant is bound to follow the conditions of the loan and there is no deficiency is seen from the part of the opposite party bank.
Hence the petition dismissed. No cost is ordered against the complainant.
Pronounced in the Open Forum on this the 30th day of November, 2009 Sd/- SRI.LAIJU RAMAKRISHNAN(PRESIDENT) Sd/- I agree SMT.SHEELA JACOB(MEMBER) Sd/- I agree SMT.BINDU SOMAN(MEMBER) APPENDIX
Depositions : On the side of Complainant : PW1 - Johny Augustine On the side of Opposite Parties : DW1 - Mathew.M.Mathew Exhibits: On the side of Complainant: Ext.P1 - Statement of Account of loan Ext.P2 - Photocopy of complainant's complaint dated 9.03.2009 addressed to the 2nd opposite party Ext.P3 - Certificate dated 16.01.2009 issued by the 2nd opposite party Ext.P4 - Loan Pass Book On the side of Opposite Parties: Ext.R1 - Photocopy of Loan Application of the complainant Ext.R2 - True copy of Interview-cum-Assessment Form for Short Term Loan/ Overdraft of the complainant Ext.R3 - Photocopy of 2nd opposite party's letter dated 25.09.2009 addressed to the complainant Ext.R4 - Application for renewal of agricultural credit for SKCC Ext.R5 - Photocopy of Circular No.131-2006-BC-PSC dated 20.06.2006 issued by the Head Office of the 2nd opposite party Ext.R6 - Photocopy of Circular No.129-2007-BC-PSCD-14 dated 13.06.2007 issued by the Head Office of the 2nd opposite party Ext.R7 - Photocopy of Summary of Interest calculation of the complainant's loan
| | HONORABLE Sheela Jacob, Member | HONORABLE Laiju Ramakrishnan, PRESIDENT | HONORABLE Bindu Soman, Member | | 
