Kerala

Kasaragod

CC/9/2021

Saji P A - Complainant(s)

Versus

V P and Head Retail loan Corporation - Opp.Party(s)

Sunny George

31 Jan 2022

ORDER

C.D.R.C. Kasaragod
Kerala
 
Complaint Case No. CC/9/2021
( Date of Filing : 14 Jan 2021 )
 
1. Saji P A
aged 48 years Residing at Vellarikund, Near Petrol Pump, Malom village, Vellarikundu
Kasaragod
Kerala
...........Complainant(s)
Versus
1. V P and Head Retail loan Corporation
Deevan Housing Finance corporation, 1st Floor, KMM Building Hall, Palarivattam,Kochi 682025
Ernakulam
Kerala
2. Manager
Deevan Finance corporation Ltd, Kannur, D.No.TV 33/363N,2nd Floor,Grand Plaza,Fort Road 670001
Kannur
Kerala
............Opp.Party(s)
 
BEFORE: 
 HON'BLE MR. KRISHNAN K PRESIDENT
 HON'BLE MRS. Beena.K.G. MEMBER
 HON'BLE MR. RadhaKrishnan Nair M MEMBER
 
PRESENT:
 
Dated : 31 Jan 2022
Final Order / Judgement

D.O.F:13/01/2021

                                                                                                  D.O.O:31/01/2022

IN THE CONSUMER DISPUTES REDRESSAL FORUM, KASARAGOD

CC. No. 09/2021

Dated this, the 31th day of January 2022

PRESENT:

SRI.KRISHNAN.K                         :PRESIDENT

SRI.RADHAKRISHNAN NAIR.M : MEMBER

SMT.BEENA.K.G                            : MEMBER

 

Saji.P.A. Aged 48 years

R/at Vellarikundu                                                                 : Complainant

Near Petrol Pump, Malom Village

Vellarikundu Taluk, Kasaragod Dt.

(Adv: Sunny George)

 

                                                            And

 

1. V.P & Head Retail loan Corporation

Deevan HousingFinance Corporation

1st Floor KMM Building Hall,

Palarivattam, Kochi – 682025

                                                                                                : Opposite Parties

2. Manager, Deevan Finance Corporation Ltd

Kannur, D. No. TV 33/363N, 2nd Floor

Grand Plaza . Fort Road, Kannur 670001

 

ORDER

SMT.BEENA.K.G: MEMBER

 

          The complainant is alleging deficiency in service and unfair trade practice on the part of Opposite Party bank as they sanctioned a housing loan of Rs. 41,00,139/- by pledging the 88 cents of property of the complainant to Opposite Party and collected service charge and insurance premium for the full amount.  But the Opposite Party disbursed only 15,00,000/- without any reason. 

     The brief facts of the case is that the complainant approached Opposite Party for a housing loan he pledged 88 cents property in R.S No; 147/7 A of Maloth village.  The complainant submitted all documents required for the housing loan.  The Opposite Party after considering the application and documents sanctioned an amount of Rs. 41,00,139/-  At the time of submitting the loan application complainant has paid an amount of Rs. 32568/- as service charge for the entire loan amount.  After passing the loan Opposite Party demanded a huge amount by way of insurance premium for the security of  loan amount.  Which is not informed to the complainant earlier.  Hence complainant was constrained to pay Rs. 1,00,139/- by way of insurance premium for entire loan amount.  To the utter surprise of the complainant the loan amount is deducted to Rs. 16,00,139/-, without any information to the complainant the complainant is credited only with Rs. 15,00,000/-. Complainant approached Opposite Party many times for getting the balance loan amount already sanctioned.  But they denied to give the balance amount without any reason.  The response of the office staffs towards the complainant was very adamant in front of the other staffs.  The complainant came to know that the balance amount of the loan is to be given based only upon the will and pleasure of Opposite Party.    The plan and estimate is prepared for the full loan amount.  Complainant forced to take huge amount of loan from local money lenders for high interest and also he had to withdraw money from his business to complete the construction of house and there by affected his business and almost cost the same and now is struggling for his family livelihood.  Moreover since the Opposite Party failed to pay the balance amount of loan, there occurred delay in construction caused huge damage due to the hike in construction materials for which also Opposite Parties are liable.  Due to the deficiency in service and unfair trade practice on the part of Opposite Party complainant suffered a lot by physically mentally and financially.  Opposite Parties promised to give a loan amount of Rs. 40,00,000/- but disbursed only Rs. 15,00,000/-.  This illegal act of Opposite Parties constrained the complainant to approached local money renders for high interest and thus somehow he completed the construction work.  Other banks refused to grant loan since the CIBIL records of the complainant shows that he has a housing loan of Rs. 40,00,000/- from Opposite Party bank. Hence the complainant is seeking and order against Opposite Parties for the refund of the service charge of Rs, 32,568/- . along with the insurance policy amount of 1,00,000/- with a compensation of Rs. 3,50,000/- .

            Notice of Opposite Parties served but they did not turned up no version filed name of Opposite Parties called absent set exparte.

            Complainant filed proof affidavit in lieu of chief examination, documents produced are marked as Ext A1 and A2. 

    The main issue raised for consideration as

  1. Whether there is deficiency in service and unfair trade practice on the part of Opposite Parties as alleged in the complaint?
  2. Whether the complainant is entitled for compensation?
  3. If so what is the reliefs?

Issue No: 1

     For convenience issue No: 1,2 and 3 can be discussed together

     The case of the complainant is that he approached Opposite Party for a housing loan after submitting the entire documents for housing loan ops sanctioned loan amount of Rs. 41,00,139/- and collected service charge of Rs. 32,568/- and insurance amount of Rs. 1,00,139/- for the entire loan amount.   The complainant prepared estimate and plan according the loan amount of Rs. 40,00,000/- as the loan amount is already sanctioned.  But ops disbursed only Rs. 15,00.000/- it was insufficient to complete the construction work.

    After the first disbursement of the loan complainant approached op many times for the balance amount but op refused to disburse the balance amount without any reason. Thereafter the complainant completed the construction work somehow he was constrained to approach local money lenders for the balance work and has to pay high interest.  The allegation of complainant is that the higher officials of Opposite Party dragged the disbursement of balance amount expecting huge amount from complainant by way of bribe.  The complainant has produced Ext A1 the welcome letter issued by Opposite Party to the complainant.  Ext A2 is the lawyer notice issued by the complainant to Opposite Party.   Ext A2 contained entire facts of the case.  In the absence of rebuttal evidence complainant case stands proved.  After sanctioning the loan amount of Rs. 40,00,000/- the Opposite Party failed to disburse even half of the loan amount, and it will cause high stress and mental agony and financial loss to the complainant.  The behavior and action of the staff of Opposite Party was also adamant.  All these amount to deficiency in service and unfair trade practice.  These damages caused only due to the deficiency in service and unfair trade practice on the part of Opposite Parties.  Hence we are of the view that there was deficiency in service on the part of Opposite Parties which caused huge loss and severe mental agony to the complainant.  The Complainants loss and agony has to be compensated.  Opposite parties are jointly and severally liable to compensate the loss of the complainant.  

    Complainant is seeking compensation of Rs. 3,50,000/- along with refund of service charge of Rs. 32,568/-and refund of insurance premium of Rs. 1,00,000/- .  Since Opposite Parties already sanctioned and disbursed the loan amount service charge cannot be refunded.  Insurance coverage will provide safety to the newly constructed house.  We carefully gone through the affidavit and documents produced by the complainant, considering the grievance of the complainant and the situation, we are of the view that an amount of Rs. 1,50,000/- is a reasonable compensation in this case.  Complainant is entitled for cost of the proceedings also.

     Therefore complaint is allowed directing Opposite Party No: 2 to pay Rs. 1,50,000/- as compensation with Rs. 5000/- (Rupees Five thousand only) as cost to the complainant.

 The time for compliance is 30 days from the receipt of this judgement.

    Sd/-                                                       Sd/-                                                      Sd/-

MEMBER                                          MEMBER                                          PRESIDENT

Exhibits

A1- Welcome letter

A2- Lawyer Notice

      Sd/-                                                    Sd/-                                           Sd/-

MEMBER                                          MEMBER                              PRESIDENT

 

Forwarded by Order

 

                                                                                    Senior Superintendent

Ps/

 
 
[HON'BLE MR. KRISHNAN K]
PRESIDENT
 
 
[HON'BLE MRS. Beena.K.G.]
MEMBER
 
 
[HON'BLE MR. RadhaKrishnan Nair M]
MEMBER
 

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