This is an application u/s.12 of the C.P. Act, 1986.

          Complainant by filing this complaint has submitted that complainant for the purpose of his livelihood and to run his family peacefully with his wife intended to purchase a minibus to earn money daily as he was an unemployed, so, a loan was sanctioned by the OP2 i.e. the Branch Manager of Central Bank of India, Beliaghata Branch, under sanctioned letter No.BR/BEK/ADV/42/09-10/11/12 dated 03-12-2009 having a term loan of Rs.8,90,000/-.

          As per said sanctioned order rate of interest was fixed 11.5 percent per annum and repayment must be made by 60 equal monthly instalment and monthly instalment was fixed at Rs.19,350/- but complainant had been paying Rs.20,000/- per month except for the last two months due to his personal cumbersome life and OP’s silence.  But it is peculiar that subsequently it was found that OP has charged interest  at the rate14 percent, 16 percent and without informing the complainant about the increase rate of interest etc. and it is no doubt a deceitful manner of service on the part of the OP and also deficiency on the part of the OP.  Another factor is that OP deducted some amount from the personal account of the complainant without his consent when complainant failed to give one instalment due to his personal problem though complainant performed as a well repayment borrower instead of dealing with humble motive OP2 dealt with such acts which not only wrongful service but violates the banking regulation and a copy of such wrongful transaction is filed by the complainant.  Truth is that OPs are under obligation to deduct the interest as per agreement but they have failed to protect the interest of the complainant by adopting unfair trade practice and wrongful services and against such sort of activity complainant sent notices on 29-05-2012, 24-05-2013, 23-07-2013 and 26-08-2013 in the question of loan account being No.3061715712 but they did not give any answer.

          Another factor is that OP2 forcefully deducted the amount of Rs.15,000/- from the complainant’s savings account though the notice of demand of wrongful act and deficiency in service of OP2 has been served to both the OPs.

          In fact, OPs has deducted higher rate of interest as per agreement and also neglected to give details of the account that is principle amount deducted month by month and interest deducted month by month at the same time OP has not deducted interest as per their letter dated 13-01-2014 being letter No.RO/KOL/N/LW/2013-14/01/18 complainant made several documents for rectification of the same and that has not been done and it is no doubt deficiency in service and negligence manner of service and at the same time OP bank has adopted unfair trade practice for which complainant appear before this Forum.

          On the other hand, OP1 by filing written statement submitted that no doubt complainant is a borrower of the term loan which was sanctioned by Bank Authority in 2009 and that application for term loan dated 16-11-2009 OP sanctioned Rs.8,90,000/- against rate of interest that is BPLR-1 percent to be paid in 60 months of EMIs of Rs.19,350/- under CGTMSE Scheme vide sanctioned letter dated 03-12-2009 and that terms and conditions of the said sanctioned letter was accepted and acknowledged by the complainant/borrower and accordingly, the sanctioned letter was issued and loan was released in favour of the complainant and the borrower availed of the said loan facilities after execution of the loan documents and purchased a minibus and started to enjoy the loan and started to pay the loan and complainant authorized the OPs to collect the EMIS from his savings account maintained in the said Central Bank of India, Beliaghata Branch if he fails to deposit and pay the EMIs.

          During the enjoyment of the said term loan (A/c. No.3061715712) complainant wrote a letter dated 29-05-2012 about the misunderstanding on his part in respect of rate of interest of the term loan, several times OPs met the complainant to make him understand about the Benchmark Prime Lending Rate (BPLR) guided by the Reserve Bank of India on banks, but the complainant failed to understand but replied to the several representation of the complainant, Senior Regional Manager of the OP vide their letter dated 13-01-2014 iniformed about the rate of BPLR from 01-04-2009 to 13-01-2014 and in the said letter it was informed the current rate of interest is 14 percent and that letter is dated 13-01-2014 and in the said letter it was informed the current rate of interest is 14 percent and that letter is dated 13-01-2014.  Fact remains that due to financial difficulties the complainant failed to pay EMIs of consecutive three months and as such the bank debited the amount of EMIs from the Savings Account of the complainant maintained in the said branch.

          Further complainant vide letter dated 11-09-2014 issued by the Advocate Indradip Das made several allegations against the OPs and asked for statement of accounts of the bank and also asked for return of overcharged interest as per his allegation but bank has also served several occasions the statement of account of the said loan account but the defendant failed to understand the bank’s right steps in respect of the charging interest on the said loan account and since no written answer received from the bank about the return of the said interest but deduction of the EMIs from the savings account, the borrower/complainant lodged the instant complaint.  So, in all respect it is the duty of the complainant to prove what type of negligent and deficiency manner of service was rendered by the OP in all respect as per his queries and request but complainant only to avoid payment tried to convince this Forum that interest rate is fixed at 11.5 percent per annum but it was fixed as per BPLR-1 percent.

          Moreover complainant has already authorized to deduct the amount of EMIs if he fails to deposit the amount of EMIs vide his letter dated 20-12-2009.  So, in the above circumstances, present complaint is bad in law and liable to dismiss with cost as OP has no illegality by deducting such amount or charging such interest and in fact complainant failed to pay the EMIs for which he is a defaulter and prayed for dismissal of this case.

Decision with Reasons

On overall assessment of the fact of the complaint and the written version and also the argument as advanced by the Ld. Lawyers of both the parties and further after critical appreciation of the sanctioned letter dated 03-12-2009 upon which complainant also relied on we have gathered that rate of interest was assessed as per BPLR-1 percent and margin is 15 percent.  EMIs was fixed for 60 months.  So, there is no doubt to hold that complainant took loan on the basis of said sanctioned letter and, thereafter, executed bond submitted hypothecation document by hypothecating the vehicle against that loan account and letter of authority to deduct from his savings bank account was also submitted etc.  But question is whether OPs deducted interest properly.  In this regard we have gathered from statement of account from 01-02-2010 to 13-08-2010 that rate of interest was charged 13 percent but at that time BPLR rate was 12 percent and after deduction of 1 percent rate was 11 percent but rate of interest was charged 13 percent but OP has failed to convince for what reason such a rate of 13 percent was deducted when it would be only 11 percent, similarly from the statement of account from 01-07-2011 to 11-06-2012 OP charged interest  at the rate16 percent  but it is found that up to 31-07-2011 interest rate was 13.25 percent and from 01-08-2011 to 30-04-2012 the rate of interest was 14 percent but rate of interest was charged 16 percent.  OP has failed to explain the reason for such charging 16 percent when actually from their letter dated 13-01-2014 it is found that it is only 14 percent or 13.25 percent or 11 percent etc. and considering all the above facts we are convinced that there is major error in assessing interest over the loan amount and no doubt complainant prayed for correction of the same and for deducting excess amount as charged interest but OP was silent however, OPs again and again admitted in their written statement that they tried to convince the complainant and also supplied a letter dated 13-01-2014 about rate of interest but relying upon the OP’s letter we find that OPs deducted the interest not as per their admitted position of interest but at a higher rate.  So, apparently, there is error in charging interest  at the rate13 percent for some period, 16 percent for some period when interest rate was 11 percent or 13.25 percent or 14 percent etc. so, invariably complainant is entitled to get a correct statement on the basis of the letter of OP-1 dated 13-01-2014 and in this regard invariably OP shall have to give in detail about the earlier statement as per interest rate over the loan amount as mentioned in 13-01-2014 letter issued by the OP and in respect of the EMI OP must have to note that what is the principal amount and what is the interest separately and we are sure that if the proper assessment of interest is made for the said loan amount as per interest rate issued by the OP on 13-01-2014 in that case invariably it would be found that the complainant shall have to get some relief because the complainant already paid 48 instalments and thereafter, when the OP charged excess interest over the balance EMIs complainant raised objection and, in fact, OP ought to have rectified the same and sent it but we have gathered that OPs assessed the interest illegally and again their own interest rate as supplied to the complainant on 13-01-2014 upon which OP as also relied and considering all the above facts and circumstances, we are convinced to hold that invariably the assessment of interest by the OP against their own letter dated 13-01-2014 regarding interest rate is erroneous and no doubt complainant has suffered for such erroneous assessment of interest at higher rate and same was done without informing the complainant time to time and to that effect we have gathered that OPs have their fault and practically they have no doubt created much pressure upon the complainant and for which complainant has suffered and deficiency in service and negligence on the part of the OPs is proved well.

In the result, the case succeeds.

Hence,

Ordered

That the case be and the same is allowed on contest with a cost of Rs.5,000/- against the OPs.

          OPs are directed to submit detail account statement with yearwise interest against loan amount and further shall have to submit a detail account of the EMIs paid and in all respect of each EMIs what is the principal paid and what is the interest paid shall be shown separately and thereafter, up to date outstanding balance shall be calculated and a detailed statement shall be submitted to the complainant and also to this Forum within one month from the date of this order and shall have to show the present outstanding of the complainant.

          Complainant is directed to deposit the balance EMI clearing the unpaid EMIs within two months from the date of this order and shall have to continue to pay balance EMIs or if complainant is willing to pay the said balance at a time he may deposit it and OP shall have to receive adjust the same with the loan amount.  After submission of the bank statement as per spirit of this order the entire matter shall be monitored by this Forum or the parties may settle the matter as per spirit of this order but invariably OP shall have to submit the detail statement as per order to the complainant and to this Forum within one month and settle the loan account of the complainant and if it is found that it is not done by the OPs to give that statement in that case such prayer shall be submitted before this Forum by the OPs and final order for payment against the loan account shall be passed by this Forum.  Parties are directed to comply this order and OPs are directed to comply this order within one month from the date of this order failing which a penal damages of Rs.25,000/- shall be imposed upon the OP for non-compliance of the Forum’s order and if it is collected it shall be deposited to this Forum and even penal action may be started against the OPs for which they shall be liable.

          Complainant shall have to deposit the balance EMIs as per spirit of this order in the meantime.