Lalit Mohan Gupta complainant has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 requiring the opposite party to issue Clearance Certificate to the complainant relating to his car loan case and to pay Rs.2,00,000/- as damages out of which Rs.1,00,000/- complainant had to pay to the person with whom he had entered into agreement to dispose off his car and Rs.1,00,000/- for harassment and inconvenience besides Rs.5500/- as litigation expenses. <br /> 2. The complainant averred in his complaint that the complainant is the customer of the opposite party bank. He had taken a loan from the opposite party in April-May 2005 for purchasing a new Assent CRDI car. The entire loan have been cleared by the complainant on 27/2/2006. As the car was hypotheticated in the name of the opposite party and as the entire loan was reimbursed so the opposite party was required to issue Form-35/ Clearance Certificate to the complainant. After that the complainant entered into an agreement to sell his car with some one and took Rs.1,00,000/- as earnest money from the vendee. The complainant had bounded himself to get the car released from the hypothetication from the District Transport Officer after getting clearance certificate from the bank. In default the complainant was required to return the amount of Rs.1,00,000/- alongwith Rs.1,00,000/- as damages. The opposite party did not provide the clearance certificate to the complainant despite several visits made by him in person. The complainant not only had to cancel the deal of the car, rather had to pay Rs.1,00,000/- as damages as he could not get the car released within the stipulated period. On 4/12/2006 he again personally requested the opposite party to provide him the clearance certificate but the opposite party did not pay any heed to his request rather used the filthy language to the complainant in the presence of the staff members of the opposite party. Due to which the complainant remained under mental tension and was tortured. The complainant sent a registered notice through his counsel to the opposite party on 4/12/2006 and he received the reply of the same through the counsel of the opposite party but they failed to issue clearance certificate to the complainant. This is clear cut deficiency of service and the complainant face inconvenience and harassment from the hands of the opposite party for which he is entitled for Rs.1,00,000/- as compensation. Hence this complaint. <br /> 3. The counsel for complainant was heard with regard to admission of the complaint and vide order dated 15-1-2007 complaint was admitted and notice was ordered to be issued to the opposite parties. <br /> 4. On receipt of the notice the opposite party appeared through Sh. R.S.Kakkar Advocate and filed written reply taking preliminary objections that the complaint is not maintainable in the present form. The alleged acts of the opposite party are not covered under deficiency of service. The complainant has still not adjusted the loan account as per the agreement executed by him in favour of the opposite party and thus until the unless the account is adjusted as per the agreement the complainant cannot ask for clearance certificate. On merits the opposite party submitted that the complainant is not a customer but a loanee and has not paid anything for any type of service and advancing loan and availing loan is not a service but strictly a commercial transaction. The complainant availed a loan on 26/4/2005 repayable in 35 installments and first installments being due for payment on 1/6/2005 with EMI of Rs.15,725/- by the complainant executing various loan documents in favour of the bank whereby submitting himself to the terms and conditions contained in the security loan documents and also regarding the rates of interest chargeable in this loan account and the modes of repayments. The complainant is yet not entitled for issuance of clearance certificate. The complainant is liable to pay to the bank charges as per para No. 8 of the agreement regarding prepayment that the borrower may repay the entire loan by giving notice in writing. In such event the bank will be entitled to charges extra @ 3% or any other rate which is applicable at that time as per the bank policy. The complainant has failed to abide by the terms and conditions on which the loan was advanced. The complainant was requested to deposit the prepayment charges so that the clearance certificate in his favour may be issued but he did not deposit the same and if the complainant has entered into an agreement to sell the car than the opposite party cannot help him. There is no deficiency of service on the part of the opposite party. Hence the complaint be dismissed with costs. <br /> 5. Both the parties wanted to lead evidence to prove their respective pleadings and proper opportunity was given to them. The complainant tendered in evidence his affidavit Ex.C-1, Statement of account Ex.C-2, copy of RC of car Ex.C-3, affidavit of Vivek Garg Ex.C-4, carbon copy of notice Ex.C-5, reply of notice Ex.C-6 and closed his evidence. <br /> 6. In order to rebut the evidence of the complainant the opposite party tendered in evidence affidavit of Kanwal Paramjit Singh Assistant Manager CBOP, Faridkot Ex.R-1, blank kit Ex.R-2 but they failed to complete their evidence despite several opportunities given to them and ultimately their evidence closed vide order dated 23/8/2007. <br /> 7. We have heard the learned counsel for the parties and have very carefully gone through the affidavits and documents on the file. Our observations and findings are as under.<br /> 8. Learned counsel for the complainant submitted that the opposite party have not issued clearance certificate to the complainant on account of repayment of entire loan amount. Complainant is entitled to damages on account of his mental harassment and torture cause by the opposite party to the complainant alongwith costs of litigation. <br /> 9. Learned counsel for the opposite party submitted that as per terms and conditions of the loan amount complainant even after making payment of entire outstanding loan amount was required to pay repayment charges as per agreement to the opposite party to the tune of Rs.3,000/- for issuance of No Due Certificate. <br /> 10. The complainant admittedly took loan in April-May 2005 for purchasing a new Assent CRDI car. He has repaid outstanding amount on 27/2/2006. Car was hypotheticated in the name of opposite party. So the complainant was entitled for release of the car from hypothetication from the District Transport Officer after getting clearance certificate from the banker of the opposite party. Complainant sent registered notice on 4/12/2006 to the opposite party. <br /> 11. As per the opposite party bank is entitled to the charges etc. @ 3% interest on account of repayment of loan amount prior to the maturity of the loan. <br /> 12. The opposite party have not placed on the file the documents executed by the complainant in favour of the opposite party at the time of taking of the loan and terms and conditions thereof, so the blank proforma Ex.R-2 in the shape of loan for new car documentation Kit relied upon by the opposite party is not helpful to them in any manner. Virtually there is no document on the file to claim any amount from the complainant on account of repayment of the loan amount prior to the maturity of the loan amount. <br /> 13. As per Thukaram Anantha Shet Versus Karnataka Bank Ltd. reported in 2006(1) Consumer Law Today-545 after repayment of the loan amount if title deeds or documents not returned by the bank there is deficiency of service on the part of the opposite party. <br /> 14. As per Punjab National Bank Versus Chaman Kumari and another reported in 2005(3) Consumer Law Today-248 if the loanee has paid entire outstanding amount bank is not entitled to demand interest at the rate of 2% prepayment charges as per circular. Such like circulars amounts to unfair trade practice as no provider of service can prevent the consumer by arm twisting tactics not to shift his bank account if he does not get proper service or he is charged interest more than other banks. <br /> 15. In view of above noted facts and circumstances there is clear cut deficiency of service on the part of the opposite party, so the complaint is accepted. Accordingly the opposite party is directed to issue Clearance Certificate/No Due Certificate to the complainant and to pay Rs.3000/- as compensation for mental tension and harassment and also to pay Rs.500/- as costs of the complaint in total Rs.3500/- to the complainant within one month from the date of the receipt of the copy of this order, failing which the opposite party shall pay interest at the rate of 12% per annum on the amount of Rs.3500/- from the date of the decision of the complaint till the realization of the amount. Copies of the order be sent to the parties free of costs. File be consigned to the record room. <br /> Announced in open Forum:<br /> Dated: 12/9/2007<br /> <br />