Vishal Verma son of Balbir Kumar aged 20 years resident of House No.B-19/465 near Railway Station Mohalla Bansi Nagar, Hoshiarpur Tehsil and District Hoshiarur.




Complainant


vs.

1. Fullerton India Credit Company Limited, Building No.12 First /Floor Solitaire Corporate Park, Andheri, Ghalkopar Link Road, Chakala Andheri (E) Mumbai-400093 through its Business Head.
2. Fullerton India Credit Company Limited, above HDFC Bank, Chandigarh Road, Hoshiarpur through its Branch Manager.

Opposite parties

Complaint u/s 12 of the Consumer Protection Act, 1986.


Quorum: Sh.P.D.Goel,President,
Sh.A.S.Jauhar,Member.
Mrs.Vandna Choudhary, Member.


Present; Sh Kamaljit Singh, counsel for the complainant.
Sh Y.P.Piplani, counsel for the OPs.



PER P.D.GOEL,PRESIDENT

1. The complainant namely Vishal Verma has filed the present complaint under section 12 of the Consumer Protection Act,1986 (as amended upto date) “hereinafter referred as the Act.”. In short,the facts of the case are that one Vishal Kumar, who was working as agent between the customer and the Company met the complainant in September,2008, and thereafter, the complainant alongwith one Anil Sharma went to the office of OP No.2 for taking personal loan of Rs.34,000/-. The Branch Manager of OP No.2 explained all the formalities and told that the interest @ 12% to 15% on the loan amount will be charged for 2-1/2 years. That the rate of interest will not be enhanced without prior information. The Branch Manager demanded salary certificate and blank cheques from the complainant. It is further the case of the complainant that in the month of October,2008, he visited the office of OP No.2 with salary certificate and 15 blank cheques, having Sr. Nos.028021 to 028035 of Axis Bank, Hoshiarpur.
2. It is the allegation of the complainant that Branch Manager and said Vishal Kumar obtained his signatures on various blank papers and forms. They also took 15 blank cheques duly signed by the complainant. The loan was payable in installments of Rs.1370/- each per month.
3. It is further the allegation of the complainant that on 6.12.2008, the OP No.2 asked him to collect the cheque of loan amount. When the complainant alongwith his friend Neeraj Thakur went to OP No.2, the Branch Manager handed over the cheque of Rs.30793/- instead of Rs.34000/-. The complainant enquired with regard to the balance amount of Rs.3207/-. The Manager of OP No.2 told that the amount of Rs.3207/- has been deducted on account of file charges, insurance and tax etc. from the loan amount. He presented the said cheque to Axis Bank, Hoshiarpur on 8.12.2008.
4. It is further the allegation of the complainant that on 5.1.2009, OP No.2 presented the cheque of Rs 1823/- issued by the complainant to the Axis Bank. It came to light that OP No.2 had charged the interest @ 31% per annum . The complainant went to the office of OP No.2 and inquired with regard to higher rate of interest. The complainant was told by the Branch Manager that his loan case is for 3 years, thus, the installment and EMI amount comes to Rs.1823/-. The OP No.2 has charged higher rate of interest, hence this complaint.
5. OPs filed the joint reply Preliminary objections vis a vis maintainability, jurisdiction and concealment of material facts were raised. On merits, the claim put forth by the complainant has been denied. It is replied that the complainant approached the OPs for availing personal loan to the tune of Rs.34000/- and made a joint application dated 30.10.2008. The father of the complainant,Sh Balbir Kumar joined as co-borrower . They executed a term loan agreement in favour of the OPs. The complainant agreed to pay flat rate of simple interest @ 31%. The loan amount alongwith interest was to be paid in 36 equal installments of Rs.1823/-. The complainant also agreed to pay the documentation charges of Rs.1500/- and also agreed to get the personal insurance cover . The offer made by the complainant was duly considered and the OPs agreed to pay loan amount of Rs.34000/-. The complainant was assisted by Vishal Kumar to complete the necessary formalities.
6. It is further replied that the complainant handed over 12 cheques of Rs.1823/-. The processing charges of Rs.1708/- and insurance charges of Rs.1499/- were deducted from the loan amount , and thereafter, the cheque of Rs.30793/- was issued. The terms and conditions were explained to the complainant, and thereafter, he executed the relevant loan agreement . It is denied that the blank cheques were obtained from the complainant as every cheque pertains to the loan installment.
7. In order to prove the case, the complainant tendered in evidence his affidavits Ex. C-1, C-2, statement of account Mark C-3, payment schedule Mark C-4, bank statement Mark C-5, repayment schedule Mark C-6 and letter dated 7.1.2009 Mark C-7 and closed the evidence.
8. In rebuttal, the opposite parties tendered in evidence affidavit Ex R-1, copy of general power of attorney Ex R-2 co-applicant application form Ex. R-3, processing charges Ex. R-4, loan agreement Ex. R-5, welcome letter Ex. R-6, repayment schedule Ex R-7, application of general insurance Ex. R-8, cover note Ex. R-9 and statement of account Ex. R-10 and closed the evidence,
9. The learned counsel for the parties have filed written arguments. We have gone through the written submissions and record of the file minutely.
10. The grouse of the complainant is that The Branch Manager of OP No.2 agreed to charge the interest @ 12% to 15% on the loan amount for 2-1/2 years and the rate of interest will not be enhanced without prior notice , whereas OP No.2 had charged the interest @ 31% per annum , as such, OP No.2 had charged higher rate of interest. It is further the grouse of the complainant that OP-2 handed over the cheque of Rs.30793/- instead of Rs.34000/-. The complainant enquired with regard to the balance amount of Rs.3207/-and on inquiry, the Manager of OP No.2 told that the amount of Rs.3207/- has been deducted on account of file charges, insurance and tax etc. from the loan amount. The OPs have pleaded that the complainant agreed to pay flat rate of simple interest @ 31%. The loan amount alongwith interest was to be paid in 36 equal installments of Rs.1823/-. The complainant also agreed to pay the documentation charges of Rs.1500/- and also agreed to get the personal insurance cover. It is also admitted that loan amount of Rs.34000/-was sanctioned in favour of the complainant . The processing charges of Rs.1708/- and insurance charges of Rs.1499/- were deducted from the loan amount , and thereafter, the cheque of Rs.30793/- was issued. The terms and conditions were explained to the complainant, and thereafter, he executed the relevant loan agreement .
11. The only point which calls decision from this Court is whether OP No.2 agreed to charge interest @ 12% to 15% on the loan amount for 2-1/2 years ? The answer to this is in the negative.
12. The OPs have raised the defence that terms and conditions were explained to the complainant, and thereafter, he executed the relevant loan agreement . The said plea raised by the OPs has not been controverted by the complainant . Ld. Counsel for the complainant submitted that the complainant is ready to pay interest as per RBI guidelines. Ld. Counsel for the complainant also made a specific reference to Ex. R-5-loan agreement , wherein in the column of rate of interest, 31% flat per annum had been written. The said loan agreement Ex. R-5 is signed by the complainant.
13. The complainant has averred that the Branch Manager of OP No.2 obtained his signatures on various blank papers and forms. The self serving affidavits of complainant Ex. C-1,C-2 are not sufficient to prove that his signatures were obtained on various blank papers and forms and besides this, there is no other evidence to prove that the Branch Manager of OP No.2 obtained his signatures on various blank papers and forms, therefore, the said plea raised by the complainant that his signatures were obtained on various blank papers and forms is not sustainable. The OPs have produced on record the affidavit of Bhupinder Pal Ex OP-1 ,wherein it has been deposed that the complainant agreed to pay flat rate of simple interest @ 31% . The loan amount alongwith interest was to be paid in 36 equal installments of Rs.1823/-. The complainant also agreed to pay the documentation charges of Rs.1500/-, processing charges of Rs.1708/- and personal insurance charges of Rs.99/-. Besides this, the OPs have produced on record a letter dated 20.9.2008 Ex.R-4 with regard to payment of documentation charges of Rs.1500/- and loan processing charges of Rs.20/-, which is signed by the complainant. It is also not the case of the complainant that the terms and conditions of the loan agreement were not explained to him.
14. Now, it is established on record that the complainant executed the loan agreement Ex.R-5 and it bears his signatures. It is not the case of the complainant that the loan agreement, referred to above, does not bear his signatures or his signatures had been obtained by playing fraud. Since the complainant agreed to pay flat rate of simple interest @ 31% , therefore, it does not lie in the mouth of learned counsel for the complainant that the complainant is liable to pay the interest as per RBI guidelines. The complainant has further failed to prove on record that the Branch Manager of OP No.2 agreed to charge the interest @ 12% to 15% on the loan amount . The complainant has also signed the letter dated 30.11.2008 Ex.R-8, wherein he had consented for cover under Group insurance policy and authorized the OPs to deduct the appropriate premium of insurance and service processing fee from loan amount and pay the same to ICICI Insurance or Bajaj Allianz .
15. . As a result of the above discussion, it is held that the OPs have not charged higher rate of interest on the loan amount from the complainant. The complainant has also failed to prove any deficiency in service on the part of the OPs, with the result, the complaint is dismissed. No order as to costs.