DATE OF FILING :16.02.2011
BEFORE THE CONSUMER DISPUTES REDRESSAL FORUM, IDUKKI
Dated this the 31st day of March, 2011
Present:
SRI.LAIJU RAMAKRISHNAN PRESIDENT
SMT.SHEELA JACOB MEMBER
SMT.BINDU SOMAN MEMBER
C.C No.38/2011
Between
Complainant : Jinson S/o Late Lukose Joseph,
Powathu House,
Nedumkandam P.O,
Chakkakkanam,
Idukki District.
(By Adv: Sijimon.K.Augustine)
And
Opposite Parties : 1. The Secretary,
Kerala State Housing Board,
Thiruvananthapuram.
2. The Executive Engineer,
Kerala State Housing Board,
Idukki Division,
Kattappana P.O, Idukki District.
3. The Accounts Officer,
Kerala State Housing Board,
Idukki Division,
Kattappana P.O, Idukki District.
(All by Adv: V.C.Sebastian)
O R D E R
SRI.LAIJU RAMAKRISHNAN(PRESIDENT)
The complainant's father, late Mr.Lukose Joseph availed a loan of Rs.4,00,000/- for constructing a house, from the opposite parties. The complainant's father produced 47 Ares of land in Sy.No.176/6 in Kalkoonhal Village as security for the loan transaction. The opposite parties disbursed the loan amount in three instalments after deducting their service charge etc. The full loan amount was not disbursed to the complainant's father. Due to the destruction of the agricultural crops, the complainant's father failed to remit the EMIs in time. According to the statement of the opposite parties, an amount of Rs.9,79,972/- plus interest and other expenses are due to the opposite party as on 12.01.2011. The amount due to them includes penal interest, default interest and other hidden charges. Due to the illness of his father and his death, the complainant filed an application before the opposite parties to avoid penal interest and default interest and sought for instalments to remit the balance. The complainant also demanded the statement of account of his loan transaction showing details regarding the payment made and also showing the details of interest, penal interest and default interest. The Government of Kerala directed to avoid penal interest and default interest. The complainant is ready to remit the loan instalments if the defaulted and penal interests are avoided by the opposite parties. The complainant personally approached the 2nd opposite party for the benefits of the Govt. scheme. But the opposite parties with ulterior motives avoided to provide the benefits of said scheme to the complainant. Now the opposite parties issued notice for the recovery of loan amount together with penal interest, default interest and other charges from the complainant by the sale of the security property. The complainant has no other property except the security and if it is sold in auction, the complainant and his family has no other means. The complainant has every right to get the benefits of the scheme declared by the Government. Moreover, charging of default interest in addition to penal interest is illegal and hence the complainant is not liable to pay that amount. So the complainant is entitled to get an order restraining the opposite parties from recovery of the entire amount without providing the benefits under the scheme declared by the Government.
2. As per the written version filed by the opposite parties, it is stated that the complainant's father availed a loan of Rs.4,00,000/- after pledging the land in survey No.176/6 of Kalkoonthal Village vide Mortgage Deed No.3469/2000 at SRO, Kattappana. As per the agreement the loan was to be repaid in 108 equal monthly instalments and the instalment amount was Rs.7,055/-. As per the income certificate produced from the Kalkoonthal Village Officer by the loanee, his annual income as on 11.07.2000 was Rs.1,50,000/-. However he repaid only an amount of Rs.50,000/- as on 30.08.2010 as single payment after taken the revenue recovery action against the complainant. He has defaulted an amount of Rs.9,79,972/- as on 31.08.2007 and it was the revenue recovery requisition amount which carries interest @ 12% from 1.09.2007. The loanee is also liable to pay interest @ 12% from 1.09.2007 along with 7.5% R/R collection charges and Rs.10,000/- towards conveyance and notice charges. The Board officials had made several attempts to collect the amount including serving several notices. The OTS benefit was also given to the complainant. But the response of the complainant was not favourable. The Board charges only the interest, penal interest and default interest for the defaulted amount for the defaulted period for remitting instalments as per clause 6 and 12 of mortgaged deed. If the complainant is willing to clear the loan account by availing OTS benefits, which is prevailing now as per the Government scheme he can close the account under such scheme. The details of the amount due to the Board as on 31.03.2011 is shown below :-
Under OTS Scheme
Amount due to the Board as on 31.03.2011 Rs. 12,30,499/-
Less Waivement as per OTS Rs. 91,673/-
Penal Interest 100% Rs. 3,60,797/-
Balance to be remitted before 31.03.2011 Rs. 7,78,029/-
Under R/R Action
R.R Requisition Rs. 9,79,972/-
12% interest 1.09.2007 to 31.03.2011 Rs. 4,21,388/-
Conveyance and other charges Rs. 10,000/-
7.5% R/R collection charges Rs. 73,498/-
--------------------
Total Rs. 14,84,858/-
Less Remitted amount Rs. 50,000/-
---------------------
Due as on 31.03.2011 Rs. 14,34,858/-
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The amount due from the complainant had been complying the conditions laid down by the Board in the mortgage deed without any violation of the rights of the customers. The complainant can avail the OTS benefit. So the petition may be dismissed.
3. The point for consideration is whether there is any deficiency in service on the part of the opposite parties, and if so, for what relief the complainant is entitled to?
4. No oral evidence adduced by both parties. Ext.P1 marked on the side of the complainant and Exts.R1(series) and R2(series) marked on the side of the opposite parties.
5. The POINT :- Heard both sides. As per the complainant, his father availed a loan of Rs.4,00,000/- and the full amount of the loan was not disbursed to his father. Due to the destruction of the agricultural crops, his father was failed to remit the EMIs in time. 47 Ares of land in Survey No.176/6 in Kalkoonthal Village was given as security for the loan. Due to the illness of his father and his death, the complainant filed an application before the opposite parties to avoid penal interest, default interest etc. and also sought for instalment facility to remit the balance payment. According to the opposite party the complainant is entitled to pay Rs.9,79,972/- plus interest and other expenses to the opposite party. The Government of Kerala directed to avoid penal interest and default interest. The complainant is ready to remit the loan instalments if the defaulted and penal interests are avoiding by the opposite parties. So the complainant approached the 2nd opposite party for the same. But they are not ready to do so and issued a notice for the sale of the property of the complainant for the recovery of the loan amount, which is marked as Ext.P1. As per the opposite party, they are charging interest as per clause 6 and 12 of mortgage deed dated 18th September, 2000 made between the complainant and the opposite parties. In clause12 of the Mortgage Deed, it is written that 'if any monthly equated instalment is not remitted on the due dates, the loanee is liable to pay a penal interest at the rate of 2.5% in addition to the usual rate of 16% on such defaulted amount from the due dates till the date of remittance'. The Mortgage Deed is marked as Ext.R1(series). Ext.R2(series) are the notices issued by the opposite party demanding to pay the loan amount on 20.04.2007 as Rs.7,17,943/-, Rs.7,17,943/- on 15.05.2007 and Rs.9,79,972/- on 23.08.2007. An OTS benefit was also intimated to the complainant by the opposite party as per letter dated 7.10.2009. On 27.05.2010 another notice was issued, in which it is stated that the complainant was entitled to pay an amount of Rs.12,27,263/- as on 30.06.2010. But as per OTS scheme they have deducted Rs.3,99,067/- and notice was issued for the same as per Ext.R2(e). Another notice dated 11.02.2011 was issued to the complainant to close the loan before 31.03.2011 stating that there will be a deduction of Rs.4,35,375/- in the loan account and the complainant is entitled to pay Rs.7,88,124/-. The benefit is only extended upto 30.06.2011, copy of the same is marked as Ext.R2(f). The complaint is filed for getting the benefits declared by the Government for the loan availed by the complainant. It is also declared by the Government to avoid penal interest and default interest. As per the opposite party, they are receiving interest as per the agreement created between the complainant and the opposite party, which is the mortgaged deed registered at the SRO, Kattappana. Penal interest is also mentioned in the mortgage deed as Clause 12 that 2.5% for the defaulted instalments. But they are also ready to provide OTS benefit to the complainant. As per the written version, they are ready to close the loan with an amount of Rs.7,78,029/- if the complainant remits the same before 31.03.2011. So we think that there is a specific Government Order No.(MS)14/10/Housing dated 20.04.2010 in which the complainant is entitled to get the benefits as per the scheme of the Government for the penal interest and default interest. That order has been produced before the Forum in several other cases. Hence the opposite party is directed to settle the complainant's loan as per the Government Order.
Hence the petition partially allowed. The opposite parties are directed to settle the complainant's loan as per the order of the Government (MS) No.14/10/Housing dated 20.04.2010 within 30 days of receipt of a copy of this order or as per the written version of the opposite party with OTS facility and the complainant has the right to choose any of the above.
Pronounced in the Open Forum on this the 31st day of March, 2011
Sd/-
SRI. LAIJU RAMAKRISHNAN(PRESIDENT)
Sd/-
SMT. SHEELA JACOB(MEMBER)
Sd/-
SMT. BINDU SOMAN(MEMBER)
APPENDIX
Depositions :
On the side of Complainant :
Nil
On the side of Opposite Parties :
Nil
Exhibits:
On the side of Complainant:
Ext.P1 - Photocopy of Notice issued by the 3rd opposite party for the sale of the property of the complainant for the recovery of the loan amount
On the side of Opposite Parties :
Ext.R1(series) - Photocopy of Mortgage Deed dated 18.09.2000 between the complainant and the opposite parties
Ext.R2(a) }
Ext.R2(b) } - Photocopy of notices issued by the opposite party demanding to
Ext.R2(c) } pay the loan amount on 20.04.2007, 15.05.2007 and 23.08.2007
Ext.R2(d) - Letter dated 7.10.2009 issued by the opposite party regarding the OTS benefit
Ext.R2(e) - Notice dated 27.05.2010 issued by the opposite party
Ext.R2(f) - Notice dated 11.02.2011 issued by the opposite party
