CC Filed on 03.12.2007<br /> Disposed on 26.03.2008<br /> BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, KOLAR.<br /> <br /> Dated 26.03.2008<br /> <br /> PRESENT:<br /> Sri. G.V.HEGDE, President.<br /> Sri. T.NAGARAJA, Member.<br /> Smt. K.G.SHANTHALA, Member.<br /> ---<br /> <br /> Consumer Complaint No.288/2007<br /> <br /> Between: -<br /> <br /> Smt. Krishnavenamma,<br /> W/o M.Venkatesh,<br /> Aged about 55 years,<br /> Women Enterpriner and<br /> Agriculturist, R/o Thathipalya,<br /> Mulbagal Town,<br /> Kolar District. Complainant <br /> (By Advocate Sri. C.M.Govinda Reddy & Others)<br /> <br /> V/S<br /> The Manager,<br /> Canara Bank,<br /> Mulabagilu Branch,<br /> M.C.Road, <br /> Mulabagal Town,<br /> Kolar District. Opposite Party <br /> (By Advocate Sri. R.A.Mohan & Others)<br /> <br /> ORDERS<br /> <br /> This is a complaint under section 12 of the Consumer Protection Act, 1986 praying for a direction against the opposite party to release the balance amount of Rs.3,60,000/- out of the sanctioned amount of Rs.10,00,000/- and further to direct the opposite party to pay Rs.38,904/- with interest on the said amount which was wrongfully claimed by opposite party and costs etc.,<br /> CC No.288/2007<br /> 2. The material facts required for the disposal of this case may be stated as follows: The complainant applied for loan for Mini Dairy Development. The project cost was estimated at Rs.18,80,000/-. The opposite party agreed to finance to the extent of Rs.10,00,000/-. The complainant was required to invest the balance 47% of project cost by way of margin money. The loan was sanctioned on 05.05.2006. An agreement was entered on 15.06.2006. The opposite party agreed to grant the credit facility as follows: <br /> <br /> a) Rs.1,00,000/- for purchase of equipments valued at Rs.2,00,000/-.<br /> b) Rs.4,00,000/- for purchase of live stock valued at Rs.7,80,000/-.<br /> c) Rs.5,00,000/- for construction of structures.<br /> <br /> The rate of interest was 11.75% per annum with overdue interest at 2% per annum payable once in six months. The project was to be completed within December-2006. Entire loan was repayable in 67 months, at the rate of Rs.16,600/- per month for the first 60 months and at the rate of Rs.4,000/- for the remaining 7 months with effect from January-2007. Interest should be paid as and when became due. Six months holiday period was allowed from the date of completion of project. For purchase of live stock, loan amount was to the disbursed in stages depending upon gestation period / dry period and for construction of structure to the extent of work done. <br /> <br /> The opposite party released the loan as follows: For infrastructure – Rs.1,20,000/- on 20.06.2006, Rs.1,90,000/- on 22.07.2006 and Rs.1,35,000/- on 30.10.2006 totally amounting to Rs.4,45,000/- and for purchase of 10 cows Rs.1,60,000/- on 16.04.2007. <br /> <br /> <br /> <br /> <br /> CC No.288/2007<br /> The infrastructure could not be completed within December-2006 for one or other reason by the complainant. He requested to postpone the holiday period till June-2007 and requested to release the amount for purchase of 10 cows. Accordingly Rs.1,60,000/- was released on 16.04.2007. <br /> <br /> 3. The complainant alleged that entire loan for purchase of cows was not released by the opposite party thereby she could not repay the interest and installments from June-2007. The opposite party contended that as installments and interest which became due were not paid, the balance amount for purchase of cows was not released. Further it contended that for release of the amount of Rs.1,00,000/- for purchase of equipments the required procedure was not fulfilled by complainant. <br /> <br /> 4. The parties filed affidavits in support of their respective contentions. We heard the arguments. The parties also filed written arguments. We perused the records.<br /> <br /> 5. The main contention of complainant is that without release of entire amount for purchase of cows the opposite party cannot claim repayment of interest and installments. The opposite party contended that as per the guidelines of the bank and also NABARD, the loan amount for purchase of cows is to be disbursed in staged depending upon gestation period / dry period, to keep uniform production of milk throughout the year. <br /> <br /> <br /> <br /> <br /> <br /> CC No.288/2007<br /> 6. The opposite party produced NABARD guidelines which supports its contention regarding release of loan for purchase of cows in installments. It appears to have uniformity in the production of milk throughout year this system is to be followed. Therefore we think the complainant is not right in contending that the entire loan was to be released at once for purchase of cows. <br /> <br /> 7. The complainant has already invested huge amount for development of mini dairy. Though she had not fulfilled the terms of loan by repaying the interest and installments, we think some relief may be granted to her readjusting the payment of installments and interest that became due. The complainant has not paid any amount towards interest or installments that became due till now. The interest due up to the end March-2008 may come to Rs.1,00,000/- and odd. The complainant submitted that she had already purchased the equipments worth Rs.2,00,000/- without the aid of opposite party. <br /> <br /> In the above circumstances we think the opposite party may be directed to release the balance sanctioned amount towards purchase of equipment and cows after deducting the interest that became due till the end of March-2008 at the agreed rate of Rs.11.75% per annum and the complainant may be directed to pay the installments as agreed with effect from July-2008 and to pay the interest as and when it falls due subsequent to March-2008. We think this rescheduling of payment is <br /> <br /> <br /> <br /> <br /> <br /> <br /> CC No.288/2007<br /> necessary in interest of complainant as well as opposite party. Hence we pass the following:<br /> O R D E R <br /> <br /> The complaint is partly allowed. The opposite party shall release Rs.3,40,000/- the balance sanctioned amount towards purchase of equipment and cows after deducting the interest that became due till the end of March-2008 at the agreed rate of Rs.11.75% per annum, on furnishing the required documents and details by complainant for release of balance loan amount and the complainant shall pay the installments as agreed with effect from July-2008 and shall pay the interest as and when it falls due subsequent to March-2008. The parties shall bear their own costs.<br /> <br /> Dictated to the Stenographer, corrected and pronounced in open Forum this the 26th day of March 2008.<br /> <br /> <br /> MEMBER MEMBER PRESIDENT<br /> <br /> <br /> <br /> <br />