Punjab

Sangrur

CC/14/2015

Gulshan Kumar - Complainant(s)

Versus

Union Bank Of India - Opp.Party(s)

Shri Amit Aggarwal

10 Jun 2015

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, SANGRUR.

 

                                                               

                                                Complaint No.    14

                                                Instituted on:      07.01.2015

                                                Decided on:       10.06.2015

 

 

 

1.     Gulshan Kumar son of Desh Raj 2. Ashwani Singla son of Gulshan Kumar, both residents of Ward No.14-B/390, Araya Samaj Block, Dhuri.

                                                        …Complainants

                                Versus

1.             Union Bank of India, Branch Sangrur through its Manager.

2.             Union Bank of India, Regional Office 41/1, Walia Complex, Atma Nagar, Dugri Road, Ludhiana through its Regional Manager.

                                                        …Opposite parties

 

For the complainants   :               Shri Amit Aggarwal,Adv.

For OPs                    :               Shri Rattan Verma, Adv.

 

 

 

Quorum:    Sukhpal Singh Gill, President

                K.C.Sharma, Member

                Sarita Garg, Member

 

 

 

Order by : K.C.Sharma, Member

 

1.             Shri Gulshan Kumar and Ashwani Singla, complainants (referred to as complainant in short) have preferred the present complaint against the opposite parties (referred to as OPs in short) on the ground that in the month of October, 2008 the complainants obtained education loan of Rs.4,00,000/- for the education of complainant number 2 from OP number 1 under account number 355306550007414.  It is further stated that the said loan was to be disbursed to the complainants periodically.  It is further stated that the complainant availed a loan of Rs.3,81,986/- from the OPs in toto out of the sanctioned loan of Rs.4,00,000/-. However, during the said period, the complainants paid certain amounts to the tune of Rs.1,52,918/-.

 

2.             It is further stated that the complainant number 2 completed his education in the month of June, 2012 and after expiry of one year of education, the complainant number 1 approached OP number 1 to know the outstanding of the loan amount, as such OP number 1 advised the complainant to deposit some amount, as such in the month of September, 2013 the complainant deposited an amount of Rs.20,000/-, but the Ops did not provide any statement to the complainants.  It is further averred that the complainants came to know that Government of India announced some benefits in the interest to those students who are economically weaker students and who have taken education loan upto 31.3.2009 which is outstanding as on 31.12.2013 to the extent of outstanding interest in the education loan.  The complainant number 1 then approached OP number 1 in the month of April 2014 and requested it to provide said benefit to him as he also belongs to the economically weaker section, but the OPs did not hear him.  It is further stated that in the month of June, 2014, the complainant number 1 again approached OPs for above mentioned purpose, but to no effect. It is further stated that thereafter the complainant number 1 moved an application under RTI and in response to the said RTI, the OP number 1 provided statement of accounts from the period 17.10.2008 to 30.6.2014. It is further stated that thereafter the complainant number 1 got served a legal notice dated 8.12.2014 upon the OPs, however, in the legal notice the date 17.10.2010 was got typed wrongly  as 17.02.2014 and in reply to the Ops, it was alleged that the account of the complainant became NPA  and further gave a wrong reply.  The Ops also sent a statement of accounts from 3.6.2014 to 30.11.2014 with the said reply.   It is further stated that despite all this, the OPs did not settle the account of the complainant. Thus, alleging deficiency in service on the part of the Ops, the complainants have prayed that the OPs be directed to provide the benefits of interest as announced by the Hon’ble Union Finance Minister, Govt. of India in the interim budget presented on 17.2.2014 for economically weaker students as mentioned above and further to pay compensation and litigation expenses.

 

3.             In reply filed by the Ops, it is stated that the principal amount of loan is repayable after one year of passing of the study of complainant number 2, whereas the amount of interest was required to be paid regularly as agreed by the complainants.  It is further stated that a notice was sent to the complainants on 25.09.2013 and the complainants came to the branch of the OPs on 27.9.2013 and deposited Rs.20,000/- and also gave an application to the Ops  to grant some time to deposit the amount.  It has been admitted that the Govt. gave subsidy on the interest which was not paid by the loanee, but not to those persons who paid interest prior to the announcement of the subsidy, so the complainant was not entitled for any subsidy in the interest as the complainant was not in arrears to pay interest on the loan amount. It has been stated further that the OPs received legal notice from the complainants which was duly replied.  The account of the complainants became NPA on 30.6.2014 and the complainants are not entitled to get any relief in interest and there is no deficiency in service on the part of the OPs.  It is stated further that the complainant is not paying even the principal amount which is outstanding to the tune of Rs.4,88,479/- upto 28.2.2015. Any deficiency in service on the part of the OPs has been denied.

 

4.             The learned counsel for the complainants has produced Ex.C-1 and Ex.C-2 affidavits, Ex.C-3 copy of legal notice, Ex.C-4 to Ex.C-5 postal receipts, Ex.C-6 copy of statement of accounts, Ex.C-7 copy of receipt, Ex.C-8 copy of loan agreement, Ex.C-9 copy of circular of OPs, Ex.C-10 copy of circular of PNB, Ex.C-11 copy of guidelines, Ex.C-12 copy of reply to legal notice, Ex.C-13 copy of statement of accounts, Ex.C-14 to Ex.C-20 copies of Income tax returns, Ex.C-21 copy of circular and closed evidence. On the other hand, the learned counsel for the OPs has produced Ex.OP-1 affidavit, Ex.OP-2 copy of letter, Ex.OP-3 copy of notice, Ex.OP-4 copy of detail regarding interest, Ex.OP-5 copy of accounts statement and closed evidence.

 

5.             We have carefully perused the complaint, version of the opposite parties and heard the arguments of the learned counsel for the parties. In our opinion, the complaint merits acceptance, for these reasons.

 

6.             After hearing the arguments of the learned counsel for the parties and on the perusal of the documents placed on record, we find that the complainants are the consumers of the OPs as they had availed the education loan from the OPs.  The main point of controversy in the present case is with regard to the interest subsidy announced by the Central Government for the education loans disbursed upto 31.03.2009 to the economic weaker sections and whose loan accounts remained outstanding as on 31.12.2013.  The version of the complainants is that the balance outstanding in the loan account as on 31.12.2013 was Rs.4,62,931/- and the principal loan amount availed was only Rs.3,86,981/-, so the amount of interest amounting to Rs.80,945/- is eligible for interest subsidy as per the document Ex.C-10.  With regard to the other criteria that the interest subsidy scheme is for the economic weaker sections the complainants have placed on record the document Ex.C-11, which shows under the head  “6.1 income limit/proof of income : the benefits of the scheme would be applicable to those students belonging to the economically weaker sections, with an annual gross parental/family income upper limit of Rs.4.5 Lacs per year (from all sources) as on date/at the time of availing loan, if available, from the appropriate authorities”  and the Ops vide document Ex.OP-4 have admitted that income of the complainant is as Rs.1.05 Lacs.

 

 7.            We may mention that during the arguments in the interest of justice, the Manager of the OPs was directed to come present along with the complete loan file of the complainants and the Ops produced the copy of loan education agreement, sanctain letters and instruction circular number 9863 dated 12.3.2014.  Ops have taken the plea that “the account became NPA on 30.6.2014.  The complainants are not entitled for any relief in interest.”  But, then the interest subsidy scheme of the Central Govt. was for the loan outstanding as on 31.12.2013 and not for the NPA loans as on 30.6.2014.  The instruction circular number 9863 clearly says that “for cases which are NPAs and outstanding as on 31.12.2013, the interest during the moratorium period (capitalized interest) or the interest outstanding as on 31.12.2013, whichever is less will be eligible for relief”.  So, the account of the complainants even if had been classified as NPA as on 31.12.2014, then also the same falls under the said scheme launched by the Central Govt.

 

8.             Further the Ops have placed on record the document Ex.OP-4 in which only two months period from 1.11.2013 to 31.12.2013 has been taken, but in the guidelines of the Central Govt that the interest subsidy which has not been mentioned with interest applied after the start of the repayment period only is eligible for the interest subsidy.  This type of interpretation of the guidelines is only creation of the brain of the Ops and is not the soul and spirit of the guidelines of the Central Govt.  The Ops have also submitted Annexure-5 along with the circular number 9863, but it seems that the Ops have not been able to understand the guidelines of the Central Govt. and have not even gone through the same themselves.  Further circular number 9863 dated 12.3.2014 of the Ops clearly states that:

“Hon’ble Finance Minister in his budget speech for 2014-15 has proposed interest subsidy for all education loans upto 31.03.2009 and outstanding as on 31.12.2013, the Central Govt. will take over the liability for outstanding interest as on 31.12.2013 and the borrower will have to pay interest for the period thereafter i.e. 1.1.2014 onwards.”  From this it seems that the Ops have not implemented the same in its true spirit.

 

9.             In the present case, the principal amount of education loan disbursed to the complainants from 17.10.2008 was Rs.3,81,986/- and as per the guidelines of the Central Govt, the balance outstanding in the account of the complainant as on 31.12.2013 was Rs.4,62,931/-, so the difference of these two i.e. Rs.80,945/- is nothing else but the amount of interest on the loan amount.   Moreover, the guidelines of the Central Govt. do not say the only interest after start of the repayment should be considered for the interest subsidy as has been done by the Ops in the document Ex.OP-4.  As per the education loan agreement, it was the principal amount which was to be recovered after the completion of course and one year after and not the amount of interest on it.

 

10.            In the light of above discussion, we find that the Ops are deficient in service and accordingly, we allow the complaint and direct the OPs to credit a sum of Rs.80,945/- in the account of the complainants.  We further order the Ops to pay to the complainants an amount of Rs.10,000/- on account of compensation for mental  tension and an amount of Rs.5000/- on account of litigation expenses.

 

11.            This order of ours be complied with within a period of thirty days of its communication. A copy of this order be issued to the parties free of cost. File be consigned to records.

                Pronounced.

                June 10, 2015.

                                                (Sukhpal Singh Gill)

                                                     President

                               

 

                                                   (K.C.Sharma)

                                                        Member

 

 

                                                    (Sarita Garg)

                                                       Member