JUDGEMENT

          Complainant by filing this complaint has alleged that he took personal loan from the op vide A/C No. 48253626 for a sum of Rs.4,22,000/- and subject to payment of the same by Equated Monthly Installment (EMI) of Rs.11,190/- by way of top up regularly.  But due to physical illness, recession, a big loss in liquid cash and financial difficulties complainant faced problem in his business and had delayed the repayment of only few EMIs.  So, under such circumstances complainant sent requested through E-mails and other possible mediums to grant him sometime and also requested them to kindly revise the rate of interest and EMI as per guidelines as per the R.B.I. and make settlement and in all times the bank authority assured that they will certainly do the needful but complainant regrets to say that the authority up till date has not taken any step as such.

          Subsequently the bank authorities threatened the complainant for immediate payment of the EMIs and for recovery of the outstanding dues and the op sent so many representatives and collection manager to the place of the complainant and those persons assaulted and misbehaved and openly threatened to kill him and spoil his personal life if he fails to pay the due amount and finding no other alternative the complainant has issued a legal notice to the bank authority through his Ld. Advocate on 29.06.2013 asking the bank authority for immediate settlement of the account along with a the reason behind the misbehavior and harassment created by their men and agents and in the said notice it has been mentioned that the settlement should be made within 7 days of notice but instead of doing that the bank authority had been doing wrong job by making threat calls and accordingly the complainant lodged a Diary before the O.C. Bansdroni P.S. and Joint Commissioner of Police (Crime), Lalbazar and for such sort of misbehave and other cause and for deficiency of service, complainant files this complaint for compensation and for harassment etc.

          On the other hand op by filing written statement submitted that complaint after studying and reading all the terms and conditions of the agreement and before disbursement of the loan executed and signed Loan Customer Confirmation Document and connected documents after fully understanding the meaning and future effect of the same and complainant also received retained copy of the said documents and at all material point of times the complainant was fully conversant and aware of the terms of grant of the said loan.

          Fact remains complainant has admitted that he defaulted to repay the loan for his difficulties.  Further complainant has admitted that he went to settle the matter by decreasing the rate of interest.  But other allegations are completely false because op never deputed any muscle men and never sent any such person to the house of the complainant and by such mere complainant was not assaulted and all those allegations are baseless for which the complaint should be dismissed.

                                                      Decision with reasons

          In this particular case after hearing the Ld. Lawyers of both the parties and also considering the complaint and written version including the documents submitted by the complainant, it is found that it is a personal loan and that was taken prior to 10.05.2011.  But now payable interest rate is noted 20% and complainant has alleged that the interest rate was not noted.  Further as per RBI Guideline, there is no question of 20% interest against any personal loan.  Anyhow the Ld. Lawyer for the op submitted that there is a contract.  Complainant singed it and complainant admitted that he took loan.  He has also admitted that the amount for EMI, he has paid 23 EMIs.  So, he is aware of the bank interest rate was 20%.  But after studying the interest rate as made by the RBI in several account, it is found that for personal loan it must not be above 11% in any case in respect of home loan it must not be more than 10.50%.  Only in commercial loan, interest rate may be raised up to 13.5%.  But as per RBI guideline no bank is entitled to raise any interest @ 20% in respect of any personal loan.

          So, considering that fact, it is clear that the present op bank acted illegally and their act imposing 20% interest over personal loan is completely arbitrary and not as per RBI guideline.  So, to that effect the allegation of the complainant is quite correct.  Fact remains that the private banks though they are being guided by the RBI guideline and rate of interest but in all respect the private banks are collecting interest like the Kabuliwalas and in fact in the present case the interest rate ought to have been 11%, but not more than that.  But anyhow it is the practice of the private banking authorities to collect signature and to handover money to the customer forthwith because they know that subsequently they shall have to put high rate of interest and it shall be charged and they shall have to collect huge amount by giving such type of loan to the customer.  It would be found that interest is paid more than the total loan amount.  In the present case fact remains that the present op bank including Axis Bank and other banks, Indus Bank and other private banks are not giving any chance to the customer to know against what type of interest they are getting such loan.

          But by sweet behavior and convincing lecture sometimes the consumer are allowed.  But after taking loan this sweet behavior is found turned into a bears claws.  It is true that private banking authorities are sending musclemen and they are deputed by giving huge for the purpose of collecting the outstanding amount and in this case FIR was lodged then invariably it is proved that the behavior of the agent or the musclemen of the op was very unsocial and no doubt it has caused some mental pain and agony to the complainant.

          Considering all the above fact and circumstances we find that the manner by which the bankers are giving loan and collecting loan amount is not at all social and moral and the private bankers are employing musclemen regularly violating the process of law and practically private banks are not willing to proceed against the customer through Court or Forum or any Tribunal.  But they are confirmed that they shall have to recover the amount by adopting force, misbehavior, threat etc. and in this case no doubt complainant was assaulted by the muscle men of the op bank for which the FIR was lodged to O.C. Bansdroni P.S. and Joint Commissioner of Police, Lalbazar.

          But fact remains that police are here and there but they are not taking any steps against the banks but they are guided by the private bankers because this private bank is giving different type of gifts to the police and by that way they have got access to depute their musclemen to recover the outstanding amount from the customers.  No doubt this system should be abolished.  But fact remains who shall have to control them because police are not here and there to control this part of activities of the musclemen of the banking authority.  No effort is made to go little help to the masses and fact remains social responsibility of the banker is larger than the bank profit and growth ratio etc.

          So in the above situation we are directing the op to recover loan amount by adopting legal procedure and bank shall not employ gundas to collect any amount from the complainant or any consumer by force.  So the fraudulent activities of the op is no doubt proved because op bank violating the interest rate as fixed for specific purpose noted down 20%  but it is illegal, incorrect, uncalled for and not as per guideline of RBI.  But in the present case complainant’s interest rate would be 11% pa. against the total amount and if any amount has been assessed and collected by the op to that extent over the loan amount by assessing 20% p.a. that shall be rectified and after assessing the loan interest over the loan amount shall be 11% p.a. and to that effect statement shall be prepared by the op bank and sent it to the complainant and thereafter complainant shall have to clear up the dues and if complainant fails to do that op bank shall have to proceed as per law for realization.  But if any complaint is filed by the complainant in future in that case the bank manager should be imposed penalty to Rs.1,00,000/- and if required penal action shall be started against this op bank.

          In view of the above and considering the entire materials and also considering the fate of the dispute we are allowing this complaint directing the op to revise the interest rate @ 11% in place of 20% from the date of granting loan and thereafter assessed the statement of account and after that op shall have to deduct the paid amount that is 23 EMIs and thereafter send statement by replacing the entire present statement within one month from the date of this order and this order is passed on the strength of the verdict of Hon’ble Apex Court passed in Appeal (Civil) 267/2007 on 26.02.2007 arising out of SLP (Crl) No. 15/2007 in the matter Mnager ICICI Bank Ltd –Vs- Prakash Kundu & Other by Hon’ble Justice Dr. A.R. Lakshmana and Justice Altamas Kabir.

          Thus the complaint succeeds.

          Hence, it is

                                                              ORDERED

          That the complaint be and the same is allowed on contest with cost of Rs.2,000/- against the op.

          Op is hereby directed to rectify the interest rate @ 11% p.a. after deleting 20% as noted in the agreement because it was not as per RBI guideline and thereafter prepare fresh statement of account of the complainant’s loan account after that deduct the already paid amount of the complainant which has been paid by the complainant in 23 EMIs @ Rs.11,191/- and thereafter send letter to the complainant for repayment of the same by equal EMIs and that fresh amount of EMI shall be informed to the complainant.

          Op is further directed not to send any muscle men or gundas to the house of the complainant or the business place of the complainant by any means whatsoever for collection of EMIs or outstanding.  If it is reported to any police station at any date in that case the matter shall be dealt with by the Forum as violation of the Forum’s order because this Forum is directing the op to be moral, social and human for running their business otherwise op may leave this business and close down this particular business if they are found engaged in respect of posting gundas, hooligans and mastans because in this case we have gathered that the present op bank’s administration is very much silent about the police case or police complaint etc.  They are very silent about their hooliganism.  But we feel that social and moral responsibility must be there in respect of any banking administration and op bank shall have to follow in future otherwise if any such incident is reported in that case this bank authority shall be imposed heavy fine and even they may be sent to jail for violation of Forum’s order.

          Op is hereby directed to comply the order within one month from the date of this order and compliance order must be submitted before this Forum positively after completion of one month if it is not submitted in that case penal action shall be started against the op as per provision of C.P. Act 1986 and penalty shall be imposed for violation of the Forum’s order.