Chandigarh

DF-I

CC/147/2024

SUDHA RANI - Complainant(s)

Versus

UNION BANK OF INDIA - Opp.Party(s)

AVNEET SINGH

13 Nov 2024

ORDER

DISTRICT CONSUMER DISPUTES REDRESSAL COMMISSION-I,

U.T. CHANDIGARH

 

                    

Consumer Complaint No.	:	CC/147/2024
Date of Institution	:	2/3/2024
Date of Decision	:	13/11/2024

 

Mrs. Sudha Rani W/o Sh. Subhash Chander Malik Resident of 3137, 2nd Floor, Sector 20 D, Chandigarh.

... Complainant

 

VERSUS

 

1. Union Bank of India (Branch Manager) Branch - SCF 3, Sector -21, UT, Chandigarh

2. Union Bank of India (Chief Manager) SCO 64-65, Bank Square, Sector 17B Chandigarh- 160017

Opposite Parties

 

CORAM :	PAWANJIT SINGH	PRESIDENT
	SURJEET KAUR SURESH KUMAR SARDANA	MEMBER MEMBER

                       

ARGUED BY	:	Sh. Avneet Singh, Advocate for the complainant.
	:	Sh. Ravinder Kumar & Sh. Devinder Kumar, Advocates for OPs.

Per surjeet kaur, Member

     Briefly stated that  in 2019 the complainant had availed loan of Rs 9.30 Lakh from the OPs having floating Interest rate of 8.70%. As per the sanction letter, the loan was to be repaid in 44 equal monthly installments of Rs.24,763/- Per month, commencing from December 2019 which was to end by July, 2023. On reviewing the loan account statement for entire loan term the complainant noticed that 'excess interest' had been charged. Immediately, the complainant visited the OPs and apprised these facts to the concerned authority of the OPs. In this regard the  husband of the complainant had done various correspondence with the OPs but to no avail.  The complainant had pointed out specific transactions in question whereby excess interest was charged. And had requested the respondent to investigate the matter promptly and supply with a detailed explanation of the excess interest charges in question. Moreover, at no point during the entire loan term, the complainant had ever demanded any moratorium from the OPs. Meaning thereby, as decided by the loan agreement, the complainant had paid the total outstanding amount as due, still extra interest was charged due to negligence of OP bank. According to the loan agreement, the complainant had to repay Rs.10,89,572/- i.e. 44 installments of Rs. 24,763/- each per month at interest of 8.70%. However, as the entire country was hit by Covid-19 Pandemic in the year, 2020 the OPs had on its own accord reduced its interest rates but the benefit of reducing Interest rates were not passed to the complainant. It is alleged that as per the interest certificates issued by the OPs, the interest depicted is Rs.1,51,738/- However, as per the loan repayment statement, the OPs have prima face charged excess interest of Rs.7834-19886 Rs.27,720/ without any just and appropriate reason. Moreover, due to the COVID-19 impact, during the period from April 2020 to August 2022, rate of interest was reduced and a moratorium was offered by the banks to give relief in the difficult times. However, as stated above the complainant has never availed this offer and still the OP chose to not deduct any amount for couple of months and later deducted collectively with higher interest. The interest rate was kept constant throughout the loan period by the respondent and hence it has resulted into overpayment of the loan and interest amount in totality. When the grievance of the complainant was not redressed a legal notice was sent but to no avail. Alleging the aforesaid act of Opposite Parties deficiency in service and unfair trade practice on their part, this complaint has been filed.

2. The Opposite Parties in their reply while admitting the factual matrix of the case stated that

the agreed rate of interest was floating rate interest @ 8.70% per annum as per sanction terms and condition duly acknowledged by the complainant, further it was reduced from 8.70% to 7.95% for the period of 01.04.2020 to 31.05.2020 thereafter it was again reduce to 7.95% to 7.55%  for the period of 1.6.2020 to 1.5.2022. Thereafter increased from 7.55% to 7.95% for the period of 11.05.2022 to 11.06.2022, further it was also increased from 8.45% to 8.95% for the period of 11.06.2022 to 01.08.2022, further it was also increased from 31.08.2022 to 01.10.2022, further it was also increase form 8.95% to 9.45% for the period of 11.10.2022 to 01.12.2022. Thereafter it was reduced from 9.45% to 9.40% for the period 21.11.2022 to 01.12.2022. Thereafter it was increased from 9.40% to 9.75% for the period 11.12.2022 to 01.02.2023, further it was also increased from 9.75% to 10.00% for the period 11.02.2023 to 01.062023. It is averred that the OPs charged the interest rate as per the guidelines of the RBI and there is no violation on the part of the OPs. All other allegations made in the complaint has been  denied being wrong.

3. Rejoinder was filed and averments made in the consumer complaint were reiterated.
4. Contesting parties led evidence by way of affidavits and documents.
5. We have heard the learned counsel for the contesting parties and gone through the record of the case.
6. Before coming to conclusion of the case it will be better to understand the meaning of floating rate of interest. In general floating rate is the rate of interest which changes periodically, which moves ups and downs depending upon economic or financial market conditions.
7. Further perusal of Annexure C-1 loan sanction letter, which has been duly accepted and is signed by the complainant reveals that the applicable rate of interest  on the sanctioned loan is floating  rate of interest at the rate of 8.70% , which as per Annexure R-1 placed on record by the OPs was further reduced to 7.95% for the period from 1.4.2020 to 31.5.2020. Thereafter the said interest was increased from 7.55% to 7.95% for the period of 11.05.2022 to 11.06.2022  and further it was also increased from 8.45% to 8.95% for the period of 11.06.2022 to 01.08.2022, further it was also increased from 31.08.2022 to 01.10.2022, further it was also increased from 8.95% to 9.45% for the period of 11.10.2022 to 01.12.2022. Thereafter it was reduced from 9.45% to 9.40% for the period 21.11.2022 to 01.12.2022. Thereafter it was increased from 9.40% to 9.75% for the period 11.12.2022 to 01.02.2023, further it was also increased from 9.75% to 10.00% for the period 11.02.2023 to 01.062023.
8. The OPs have given complete details of rate of interest charged from time to time as is evident from Annexure R-1 the interest statement. Apparently there is no violation on the part of the OPs as  the terms and conditions of the loan were duly informed to the complainant, which were later on acknowledged and agreed upon by her. Hence, the complainant cannot run away from her liability. Hence, no case is made out against the OPs and the complaint being meritless is liable to be dismissed. 
9.      In view of the aforesaid discussion, the present consumer complaint, being devoid of any merit, is hereby dismissed leaving the parties to bear their own costs.
10.      Pending application if any stands dismissed.
11.     Certified copies of this order be sent to the parties free of charge. The file be consigned

			[Pawanjit Singh]
			President
			[Surjeet Kaur] Member
13/11/2024			[Suresh Kumar Sardana]
mp			Member