Tamil Nadu

North Chennai

CC/13/2015

D.Ranjni,W/o.C.L.Dhanasekaran, C.L.Dhanasekaran,S/o.C.Lokesan, - Complainant(s)

Versus

The Regional Manager, LIC Husing Financee Ltd., - Opp.Party(s)

M/s.K.Ramesh

15 Feb 2022

ORDER

                                                                  Complaint presented on : 04.12.2014

                                                                    Date of disposal            : 15.02.2022

 

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION,

CHENNAI (NORTH)

@ 2^ND Floor, T.N.P.S.C. Road, V.O.C. Nagar, Park Town, Chennai – 600 003.

 

PRESENT: THIRU. J. JUSTIN DAVID, M.A., M.L.      : PRESIDENT

THIRU. S. BALASUBRAMANIAN, M.A., M.L.          : MEMBER

 

C.C. No.13/2015

 

DATED THIS TUESDAY THE 15^th DAY OF FEBRUARY 2022

                                

1.D.Ranjini,

W/o. C.L.Dhanasekaran,

 

2.C.L.Dhanasekaran,

S/o. C.Lokesan

Residing at No.1/2,

Alathur Subramania Street,

1^st Floor, Choolai, Chennai – 600 112.

                                                                                                  .. Complainants.                                                                   ..Vs..

 

1.The Regional Manager,

LIC Housing Finance Ltd.,

Harrington Chambers,

Block ‘C’ No.30/1A,

Abdul Razack 1^st Street,

Saidapet – 600 015.

 

2.The Area Officer,

LIC Housing Finance Ltd.,

Anna Nagar (East),

Chennai – 600 102.

                                                                                        ..  Opposite parties.

 

 

 

Counsel for the complainants                          : M/s.K.Ramesh and another

Counsel for the  opposite parties                   : Mr.S.Kumarswamy

ORDER

THIRU. J. JUSTIN DAVID, PRESIDENT

          This complaint has been filed by the complainant against the opposite parties under section 12 of the Consumer Protection Act, 1986 prays to  pay a sum of Rs.10,00,000/- towards compensation for mental agony  with cost of this complaint.

1.THE COMPLAINT IN BRIEF:

          The complainants had proposed to purchase a vacant piece of land measuring an extent of 1225 sq.ft. situated at Jawahar Nagar, Chennai for a value of Rs.42,00,000/-  and hence also entered into sale agreement with owner of the property on 12.03.2014. The complainants immediately applied for LIC Housing Finance for availing housing loan to the turn of Rs.25,00,000/- at the Anna Nagar Branch with all relevant documents required by LIC Housing Finance LICHF Anna Nagar, Chennai had sanctioned the loan amount subsequent to which a sanctioned  order copy of the loan was sent to the complainants  on 25.03.2014. The LICHF in principle had agreed orally and assured that the loan amount would be released well before 09.06.2014 based on which we had fixed date for registration of the same day and also had settled part of the amount to the original owner during the month of May 2014. The LIC Housing Finance assured that the loan amount would be released on or before 11.06.2014. However, since all the formalities for the registration had already been put in place, the complainants with great difficulty convinced the vendor by issuing cheques for Rs.25,00,000/- dated 11.06.2014 and got the land registered on 09.06.2014 itself. The complainant had issued the cheques to the vendor only because of the assurance given by the agent of LIC Housing Finance that the loan amount would be released well before 11.06.2014 but however, to the dismay of complainants, even on the assured date as mentioned above, the loan amount was not released which had left the complainants in a state of shock and mental agony. The loan amount has not been released nor was there any proper explanation given as to why there was delay in releasing the loan amount in spite of the fact that the same had been sanctioned by the LICHF as early as on 25.03.2014. Having registered the land and having issued a cheque to the vendor for Rs.25,00,000/- dated 11.06.2014, based on the false assurance given LICHF that the loan amount would be released on the above said date, the vendor is putting a lot of pressure on us to settle the balance amount of Rs.10,00,000/- apart for the amount of Rs.15,00,000/- already settled by us by borrowing money from private lenders. Hence, we issued a legal notice dated 06.09.2014 calling upon the opposite party to release the loan amount of Rs.25,00,000/- as sanctioned by LICHF on 25.03.2014 and further pay a compensation of Rs.10,00,000/- to us for the mental agony suffered by us right  through all these days. Hence this complaint.        

2.WRITTEN VERSION FILED BY THE OPPOSITE PARTIES  IN BRIEF:

           At the outset the complaint is not maintainable for two reasons, the first and foremost is that the complaint does not have a cause of action for deficiency in service. The customer had applied for a housing loan on 20.03.2014, for a sum of Rs.25,00,000/- for purchase of plot, for 10 years loan term. The loan has been sanctioned to the customer for Rs.25,00,000/- for the  purchase of plot for 10 years loan term on 25.03.2014. The loan offer was also issued to him. Although the opposite party had issued sanction letter, the opposite party had to follow certain guidelines and norms before disbursement of loan. As per the loan sanction order, terms and condition, the loan is sanctioned subject to clearance of property title verification. The Area Manager had communicated to the Manager Operations dated 10.04.2015 stating that the complainant’s loan cannot be processed further since the title was not clear. The same has been effectively communicated to the customer vide e-mail communication from the opposite party’s customer support dated 06.08.2014, stating that loan amount was not disbursed as there is no legal clearance and the title was not clear. On 20.08.2014 and 22.08.2014 the Consumer Association India had again sent mails to  the complainants. Even after being aware of the actual position the complainant had deliberately without any genuine reason had approached this Hon’ble forum seeking for relief. The complainant as such is not entitled for the relief claimed for in this instant complaint. It is also true that upon scrutinisation of the relevant documents produced by the complainant housing loan was sanctioned by the opposite parties and loan sanction copy was sent to the complainant. Due to the reason that the title to the complainant’s property was not legally clear, as per the guidelines and norms, loan was not disbursed to the complainant. The complainant’s alleged demand notice has been categorically replied and effectively communicated to the complainant on 06.08.2014 through e-mail stating the reasons and circumstances for the non-disbursement of loan and denying about the alleged assurances of the opposite party’s agents with regard to the disbursement of the loan. The complainant is not entitled to the reliefs of this complaint.        

3. POINTS FOR CONSIDERATION:    

1.Whether there is deficiency in service on the part of opposite parties?

2. Whether the complainants  is entitled for compensation and cost?

3. To what other relief, the complainants is entitled?

 

4. POINT NO :1& 2

          It is admitted both parties that the complainants applied for housing loan to the tune of Rs.25,00,000/-  at the Anna Nagar Branch LIC Housing Finance and the LIC Housing  Finance Branch Anna Nagar Sanctioned loan amount of Rs.25,00,000/- on 25.03.2014. Ex.B1 is the copy loan application form dated 20.03.2014 and Ex.A1 is the copy of loan sanctioned order issued by the LIC Housing Finance Limited Anna Nagar Branch.

          05. The case of the complainants is that the LIC Housing Finance agreed to release the loan amount on or before 09.06.2014, but the opposite parties not released the loan till registration of sale deed and the complainants borrowed money from third party and issued cheque of Rs.25,00,000 to the vendor on 11.06.2014  and got the land registered on 09.06.2014 itself, but the loan amount not released by the opposite parties and thereby caused mental agony to the complainants.

          06. The opposite parties contended the loan was sanctioned subject to the clearance of property title verification and the title to the complainant’s property was not legal clear as per guidelines and norms therefore loan was disbursed to the complainants. Therefore, this commission finds out whether the loan was sanctioned subject to the condition of clearance of property title.

          07. The opposite parties filed Ex.B1 copy of loan agreement and condition for new loans. The complainants also signed in the new loan undertaking on 20.03.2014. In which it is clearly stated as follows: 

1.There are three stages of loan processing a. Loan Sanction, b. Legal Clearance and C. Disbursement of  Loan.

2. Disbursement of Loan is Subject to legal scrutiny and approval by  our Panel Advocate.

Therefore loan is sanctioned subject to the condition of legal scrutiny and approval panel advocate. Therefore, the complainants cannot claim  the release of loan amount as a matter of right.

          08. The complainants on 06.07.2014 written a letter through e-mail to the opposite parties stating that there is delay in releasing the loan inspite of repeated request and requested the opposite parties to mention the reason for not releasing the loan. Ex.B4 is the copy of the notice. The opposite parties written a letter on 06.08.2014 stating they are unable to make the disbursement of loan as the legal for the property not clear.  Ex.B4 also contained the reply letter dated on  06.08.2014. Thereafter the complainants sent a complaint to the Customer Association India stating that the procedure sanctioned a loan is to get legal clearance for title of property from the panel advocate and also the report of the value with regard to the value of the property. In this case legal clearance not coming inspite of lapse of several months. The opposite parties written a reply on 12.08.2014 sating that as per guidelines the sanctioned loan of Rs.25,00,000/-  subject to terms and conditions. Ex.A4 is the copy of letter and reply. Thereafter the opposite parties informed to the complainants on 20.08.2014   stating that title of property not clear hence there are unable to make the disbursement and also request the complainants the furnished the documents namely easy for the period from 01.01.1968 to till date, 2. Sale deed 3. Original documents for verification. Hence the loan is not disbursed for want of legal clearance.

          09. The complainants in their proof affidavit admitted on 11.08.2014 legal advisor of LIC Housing Finance sent a mail to the complainants to produce the documents required for sanctioning of loan and ask the complainants to renew the loan application for the further period of three months from 01.06.2014 and thereafter it was renewed. The complainant also admitted the e-mail sent by the legal advisor of the opposite parties on 11.08.2014  the produced some documents.

          10. The complainants are husband and wife. They applied for housing loan to the 2^nd opposite parties and opposite parties sanctioned the loan subject to  legal scrutiny of documents and approval by panel advocate. In this case the documents were not approved by panel advocate and therefore loan amount was not disbursed. The opposite parties not disbursed the loan amount as per the terms and conditions mentioned in the loan sanctioned letter. There is no violation of terms and conditions mentioned in the sanctioned letter by the opposite parties. Under these circumstances there is no deficiency in service on the part of the opposite parties and opposite parties is are not entitled for compensation and cost.

11.POINT NO:3

          Since the opposite parties have not committed any deficiency in service, the complainant is not entitled for any relief as prayed and the complaint is liable to be dismissed.

          In the result, this complaint is dismissed. No costs.    

Dictated  by the President to the Assistant taken down, transcribed and computerized by her, corrected by the President and pronounced by us in the open Commission on this the 15^th day of February 2022.

 

MEMBER – I                                                                PRESIDENT

 

LIST OF DOCUMENTS MARKED ON THE SIDE OF COMPLAINANTS:

Ex.A1 dated 25.03.2014          Sanctioned copy given by LICHF

 

Ex.A2 dated 25.08.2014          Mail sent through Consumer Assn. of India and reply got from LICHF

 

Ex.A3 dated 05.08.2014          Copy of LIC policy cancelled statement

 

Ex.A4 dated 23.08.2014          Copy of another LIC policy cancelled statement

 

Ex.A5 dated 13.08.2014          Jewel pledged receipt

 

Ex.A6 dated 06.09.2014          Legal notice issued by the complainant along with acknowledgement

 

 

LIST OF DOCUMENTS MARKED ON THE SIDE OF OPPOSITE PARTIES

Ex.B1 dated 20.03.2014          Loan application form duly filed and signed by the complainant

 

Ex.B2 dated 20.03.2014          Additional conditions for loan sanction and the new loan undertaking signed by the complainant

 

Ex.B3 dated 24.06.2014                   Time limit extension mail sent by the complainant

 

Ex.B4 dated 06.07.2014          The complainant mail sent by the complainant to the opposite parties

 

Ex.B5 dated 06.08.2014          The Consumer Association of India complaint mail to the opposite party on behalf of the complainant and the reply sent by the opposite party

 

 

MEMBER – I                                                               PRESIDENT