DISTRICT CONSUMER DISPUTES REDRESSAL FORUM PALAKKAD
Dated this the 10th day of August 2012
Present : Smt.Seena H, President
: Smt. Preetha.G. Nair, Member
: Smt.Bhanumathi.A.K. Member Date of filing : 07/01/2012
(C.C.No.7/2012)
Latha Nair,
W/o.Dr.N.G.Nair,
Residing at Revathi,
Venkitesapuram, Puthur,
Palakkad – 678 001 - Complainant
(By Adv.R.Manikandan)
V/s
The Manager,
The State Bank of India,
Agricultural Development Branch,
Railway Station Road,
Palakkad - Opposite party
(By Adv.G.Ananthakrishnan)
O R D E R
By Smt.SEENA.H. PRESIDENT
Brief case of the complaint :
Complainant has availed 4 loans for Rs.2,25,000/-, Rs.1,72,000/-, Rs.72,000/- Rs.2,85,000/- respectively from the opposite party for diary farming on security of equitable mortgage created over 60 cents of lands owned by the complainant. Due to financial crisis complainant could not repay some of the installments and thereby the aforesaid loans were declared as Non Performing Assets with effect from 30/9/2007. By the time, the Govt. introduced Agricultural Debt Waiver & Relief Scheme 2008 in which complainant was also included. As per the scheme 25% of the amount outstanding as on 29/8/2008 was waived and the balance 75% was to be deposited by the complainant on or before 31/12/2009. According to the complainant, after deducting the waiver amount the total amount due to the bank in all the four loans is Rs.1,05,130/- and its simple interest.Complainant approached the opposite party on 31/12/2009 and on other several occasions to clear the debt and also to know the details of payment according to the bank. Complainant was in dire need to release the mortgaged property. Bank was not giving the details stating lame excuses. Complainant preferred complaints to the Banking Ombudsman and also to the officer of SBI on 10/9/10 & 14/12/10 respectively. But they were not prepared to enquire into the matter. On 24/2/11 i.e. 14 months after 30/12/2009, the date of payment of last installment the opposite party asked the complainant to close the accounts by paying Rs.5,69,307/- to the complainant in all the four accounts. According to the complainant she is liable to pay only Rs.1,05,130/- plus interest. Opposite party has directed to pay an excess amount of Rs.4,64,177/-. Complainant by paying the entire dues as stated by the opposite party released the documents as she was in dire need of the same. The grievance of the complainant is that inspite of repeated requests opposite party finally settled the accounts with a delay of 14 months. Further opposite party instead of simple interest claimed compound interest. Again, since the loans were declared NPA on 30/9/2007, opposite party is not entitled to claim interest from the said date. The act of opposite party amounts to clear deficiency in service and hence the complaint. Complainant prays for refund of the excess amount of Rs.4,64,177/- together with compensation of Rs.50,000/-.
Opposite party admits the release of loan amounts for diary farming under various heads. Opposite party contented that complainant is not a consumer as there is only a debtor-creditor relationship between the complainant and opposite party. Further complainant is bad for non joinder of necessary parties since the Central Govt. and RBI is not made a party though the complaint relates to Debt Waiver Scheme of the Central Scheme. As per Section 4(b) of the scheme the eligible amount as far as the complainant is concerned is the installments over due and applicable interest on such installments as on December 31st 2007 and unpaid till February 28, 2008. All other dues are to be repaid as per the terms and conditions of the loan. Complaint coming under the category of other farmer is entitled to get 25% of the eligible amount waived of provided he pays 75% of the eligible amount. With regard to the dispute as to interest according to opposite party they have charged interest as per the agreement executed by the complainant and as per the RBI directions. As per the version of opposite party, complaint was under a mistaken impression that once she pays 75% of the outstanding amount, opposite party will give credit of 25% and thereby account will be closed. Whereas, as per the scheme complainant is entitled to only 25% of the over due installments and its interest and to avail the benefit complainant has to pay 75% of the overdue installments and its interest. On payment of the said dues mortgaged documents were returned to the complainant. Opposite party denies the say of the complainant that there is an inordinate delay in settlement of accounts by the opposite party. According to opposite party there is no deficiency in service on the part of opposite party.
The evidence adduced consists of the chief affidavits of the respective parties. Ext.A1 to A8, B1 to B12 and the testimony of DW1.
Issues for consideration
- Whether there is any deficiency in service and unfair trade practice on the part of opposite party ?
- If so, what is the relief and cost complainant is entitled to ?
Issue No.1
Availing of four loans from the opposite party for diary farming is admitted. Complainant is entitled for 25% Debt relief under the head “other farmer” is also admitted. Complainant has no case that opposite party has not granted the said relief, but inordinate delay in the settlement of the accounts has caused complainant to pay extra interest and also the interest calculations made by the opposite party is not correct. According to the opposite party complainant is entitled to 25% of the eligible amount and not the whole outstanding amount. We find that the difference in calculations by the parties arose from the misinterpretations of the provisions of the Debt Relief scheme. As per the clause 4.1(b) eligible amount is the installments over due and applicable interest on such installments as on December 31st 2007 and unpaid until February 28, 2008. Admittedly complainant has to repay Rs.1,05,130/- plus simple interest as on 31/12/2009. Opposite party has produced agreement executed by the parties which is marked as Ext.B3. No where in Ext.B3, it is stated that only simple interest will be charged. Opposite party on the other hand has provided in the version in detail, the various interest rates charged by the opposite party as per RBI directions. No contrary evidence is produced by the complainant on this behalf. According to the complainant opposite party has collected an excess amount of Rs.4,64,177/- (i.e. Rs.5,69,307/- the amount asked by the opposite party to pay minus Rs.1,05,130/- plus interest.) The amount admitted by the complainant to be repaid. We do not understand without knowing what is the actual interest, how can the complainant derive at such an amount.
Further with respect to claiming of interest since the loans were declared NPA in Ext.A6 which is the letter issued by the opposite party to the complainant it is stated that “accounts became NPA on 30/9/07 and no interest applied till the agricultural debt relief cut off date. But Ext.B9 account statement for the period reveals that interest has been charged for the said period also. As per the clarification provided by the authorities produced by the opposite party, with respect to the Debt relief Scheme, it is stated that “in the case of NPA loans, no interest will be applied from the date when the loan account classified as NPA”. Hence interest on loans classified as NPA for any period after it is so classified can neither be claimed from the Govt. nor from the farmer.
Regarding the inordinate delay in settling the accounts of the complainant, DW1 the branch manager has deposed that “30/12/2009 XnbXn installment AS¨n«v _m¡n F{X complainant ASbv¡m\ps¶v complainant tcJmaqew tNmZn¨ncp¶p. AXn\v adp]Sn sImSp¯Xv 14 amkw Ignªn«mWv F¶v ]dªm icnbÃ. Further states that 14 amk¯n\pÅn complainant\v adp]Sn sImSp¯Xmbn ImWn¡m³ tcJbnÃ. 14 amkhpw _m¦v ]eni CuSm¡nbn«pv. B ]eni 1,60,123/- cq] hcpw. Ext.A4 shows that though the complainant has enquired the details of the balance outstanding dues much earlier, opposite party has provided the same only on 18/2/2011. Had the opposite party provided the same within a reasonable period, complainant would had relieved from payment of interest till February 2011.
From the evidence adduced by the complainant, excess payment of Rs.4,64,177/- is not proved by any cogent evidence. However we find that there is a delay on the part of opposite party in settling the accounts of the complainant and charging of interest after declaration of loan as NPA. To that extent we find opposite party deficient in service. It is settled position that Consumer Forum can only award compensation for the deficiency in service and not for the actual loss. Hence we quantify an amount of Rs.1,00,000/- as compensation for the deficiency in service which we find will meet the ends of justice.
In the result, complaint partly allowed. Opposite party is directed to pay complainant an amount of Rs.1,00,000/- (Rupees One lakh only) as compensation and an amount of Rs.1,000/- (Rupees One thousand only) as cost of the proceedings. Order shall be complied within one month from the date of receipt of order, failing which the whole amount shall carry interest @9% per annum from the date of order till realization.
Pronounced in the open court on this the 10th day of August 2012.
Sd/-
Seena.H
President
Sd/-
Preetha G Nair
Member
Sd/-
Bhanumathi.A.K.
Member
APPENDIX
Exhibits marked on the side of the complainant
Ext.A1 – Copy of Agricultural Debt Waiver & Debt Relief Scheme,2008
Ext.A2 – Copy of letter dated 10/9/10 sent by the complainant to the opposite
party
Ext.A3 – Copy of letter dated 11/1/11 sent by the complainant to the opposite
party’ s office at Thiruvananthapuram
Ext.A4 – Copy of letter dated 24/2/11 sent by the opposite party to
complainant.
Ext.A5 – Copy of letter dated 08/3/11 sent by the complainant to the opposite
party
Ext.A6 – Copy of letter dated 18/3/11 sent by the opposite party to
complainant.
Ext.A7 – Copy of letter dated 21/3/11 sent by the complainant to the opposite
party
Ext.A8 – Copy of letter dated 9/5/11 sent by the complainant to the opposite
Party
Witness examined on the side of the complainant
Nil
Exhibits marked on the side of the opposite party
Ext.B1 – Application form of complainant for Agricultural Credit
Ext.B2 – Loan Sanction letter of opposite party
Ext.B3 –Hypothecation Agreement
Ext.B4 - Application form of complainant for Agricultural Credit
Ext.B5 – Letter of Arrangement
Ext.B6 – Agreement
Ext.B7 - Undertaking
Ext.B8 –Statement of Accounts of A/c No.10396631101
Ext.B9 - Statement of Accounts of A/c No.30043291031
Ext.B10 - Statement of Accounts of A/c No.10396631112
Ext.B11 – Statement of Accounts of A/c No.10396631098
Ext.B12 - Statement of Accounts of A/c No.10396631087
Witness examined on the side of the opposite party
DW1 – Santhoshkumar.M
