Punjab

Faridkot

CC/18/98

Satish Kumar - Complainant(s)

Versus

HDFC Finance Co. - Opp.Party(s)

Uma Shankar Sharma

22 Jul 2019

ORDER

   DISTRICT CONSUMER DISPUTES REDRESSAL FORUM, FARIDKOT

 

C. C.   No. :              98 of 2018

Date of Institution:    12.06.2018

Date of Decision :      22.07.2019

 

Satish Kumar aged about 70 years, son of Hari Chand resident of Mehnga Ram Wali Gali, Surgapuri, Kotkapura, Tehsil Kotkapura  District Faridkot.

                                                                              .........Complainant

Versus

1. HDB Finance Company, Faridkot Road, Kotkapura through its Manager.
2. HDFC ERGO General Insurance Company Ltd, Faridkot Road, Kotkapura through its Authorized Signatory.

                                                                           .............OPs

Complaint under Section 12 of the

Consumer Protection Act, 1986.

 

Quorum:  Sh Ajit Aggarwal, President,

                Smt Param Pal Kaur, Member.

 

Present: Sh Uma Shankar, Ld Counsel for Complainant,

            Sh Ashu Mittal, Ld Counsel for OP-1,

            OP-2 Exparte.

ORDER   

(Ajit Aggarwal, President)

                                             Complainant has filed the present complaint under Section 12 of the Consumer Protection Act, 1986 against  OPs seeking directions to OPs to cancel the insurance policy, to refund the amount deposited against said policy and to pay Rs.40,000/- as

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compensation for deficiency in service and harassment alongwith litigation expenses of Rs.25,000/-.

2                                   Briefly stated, the case of the complainant is that complainant took a loan from OP for his domestic use and OP-1 had taken eight blank cheques from complainant as security for repayment against said loan. It is submitted that OP-1 assured complainant to sanction loan worth Rs.1,25,000/-, but they sanctioned loan only for Rs.1,16,142/- and at the time of sanctioning loan, OP-1 took signatures of complainant on various blank forms and also took copies of his identity card and adhar car. It is further submitted that complainant came to know that OP-2 in connivance with OP-1 issued Insurance Policy bearing No.2828 2015 0816 3800 000 dated 27.09.2016 in the name of son of complainant whereas complainant never purchased the said policy. OPs issued the said policy without the consent of complainant and his son and against their wishes and Ops are misusing the cheques given by complainant in his loan case for payment of instalments of loan. No medical examination of son of complainant was conducted and even no medical report is obtained from any concerned doctor. Complainant made several requests to OPs to cancel the said policy and to refund the amount illegally deducted by OPs against said policy, but OPs paid no heed to his genuine requests. Even legal notice dated 3.05.2018, issued by complainant through his counsel to OPs served no purpose. All this act of OPs amounts to deficiency in service and trade mal practice on their part and has caused harassment and mental tension

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to complainant. He has prayed for directing OPs to pay compensation alongwith litigation expenses besides the main relief. Hence, the complaint.

3                                               The counsel for complainant was heard with regard to admission of the complaint and vide order dated 13.06.2018, complaint was admitted and notice was ordered to be issued to the OPs.

4                                               On receipt of the notice, the OP-1 filed written statement wherein they have denied all the allegations of complainant being wrong and incorrect and asserted that there is no deficiency in service on their part. It is asserted that complaint filed by complainant is not maintainable and is liable to be dismissed as OP-1 works only as facilitator between complainant and OP-2 and insurance policy in actual is issued by OP-2. Complaint involves complicated questions of law and facts requiring lengthy evidence, which is not possible in the summary proceedings of this Forum. Moreover, complainant has not come to the Forum with clean hands and has concealed the material facts. Further loan agreement between complainant and answering OP was executed at Bathinda and therefore, this Forum has no jurisdiction to hear and try the present complaint and he has no locus standi to file the present complaint as policy has been issued in the name of son of complainant. It is denied that answering OP took eight blank cheques from him, rather they did not take any cheque

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from complainant in security against loan repayment. It is also averred that complainant applied for loan of Rs.1,25,000/-and same was sanctioned and after deducting charges for processing fee and insurance premiums, remaining amount of Rs.1,16,142/-was paid to him. they never took signatures of complainant on any blank papers. It is further averred the complainant himself took the policy in question in the name of his son Krishan Kumar. Further submitted that at the time of taking loan, complainant took insurance policy Credit Protect Plus Insurance Plan valid from 21.09.2016 to 20.09.2019 and after about one week, complainant again approached them and took health insurance policy in the name of his son Krishan Kumar valid for the period from 27.09.2016 to 26.09.2018. All the other allegations are denied being wrong and incorrect. It is reiterated that there is no deficiency in service on their part and prayed for dismissal of complaint with costs.

 5                                       Notice containing copy of complaint alongwith relevant documents was issued to OP-2 through RC AD, but it did not receive back undelivered. Statutory period expired, but despite repeated calls, nobody appeared in the Forum either in person or through counsel on date fixed. Therefore, vide order dated 21.08.2018, OP-2 was proceeded against exparte.

6                                    Parties were given proper opportunities to prove their respective case. Counsel for complainant tendered in evidence

 

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affidavit of complainant Ex.C-1 and documents Ex C-2 to C-10 and then, closed their evidence.

7                                              To controvert the allegations of complainant, ld counsel for OP-1 tendered in evidence affidavit of Vikas Verma Ex OP-1/1 and then, closed the same on behalf of OP-1.

8                                              We have heard the ld counsel for complainant as well as OP-1 and have carefully gone through evidence and documents placed on record respective parties.

9                                              From the careful perusal of evidence placed on record and from the pleadings of the parties, it is observed that  case of complainant that complainant took a loan from OP-1and OP-1 took eight blank cheques from him in security against said loan and assured complainant to sanction loan worth Rs.1,25,000/-, but they sanctioned loan only for Rs.1,16,142/- and at the time of sanctioning loan, also took signatures of complainant on various blank forms and also took copies of his identity card and adhar car. OP-2 in connivance with OP-1 issued Insurance Policy in question in the name of his son though complainant never purchased any policy. OPs issued the said policy without their consent against their wishes and they are misusing the cheques given by complainant in his loan case for payment of instalments of insurance policy. No medical examination of his son was

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conducted and no medical report is obtained from any concerned doctor. Complainant made several requests to OPs to cancel the said policy and to refund the amount illegally deducted against said, but all in vain. Legal notice issued by complainant also served no purpose. All this amounts to deficiency in service and has caused harassment to him. he has prayed for accepting the present complaint alongwith compensation and litigation expenses besides main relief. On the other hand OP-1 have denied all the allegations being wrong and incorrect and stressed mainly on the point that complainant himself purchased the said policy with his own free will and sternly denied that they  took any cheques from him and also denied that they did not take signatures of complainant on any blank forms. As per OPs, complainant applied for loan of Rs.1,25,000/-and same was sanctioned and after deducting charges for processing fee and insurance premiums, remaining amount of Rs.1,16,142/-was paid to him. All the other allegations are denied being wrong and incorrect. It is reiterated that there is no deficiency in service on their part and prayed for dismissal of complaint with costs.

10                                   To prove his pleadings, ld counsel for complainant has relied upon document Ex C-9 copy of insurance policy issued by Ops to complainant. Ex C-6 copy of policy schedule clears the pleadings of complainant that OPs deducted Rs.10,284/-from the account of complainant against payment of instalment of premium amount. Ex C-5 is copy of letter written by complainant to S.S.P. Faridkot wherein he has narrated his grievance that policy in question

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has been issued to him without his consent and amount of Rs.10,284/-has been illegally debited from his account in clearance of cheque no.484418, which OP-1 took from complainant as security against repayment of his loan amount. It also proves the fact that complainant applied for loan of Rs.1,25,000/-, but they cleared the loan only for Rs.1,16,142/-. Further documents Ex C-2 to Ex C-4 are copies of legal notice and postal stamps that prove the fact that complainant made several requests to OPs to redress his grievance. Through his affidavit Ex C-1 , complainant has reiterated his grievance.

11                                            From the careful perusal of evidence and documents placed on record and pleading made by parties in above discussion, it is observed that there is no dispute regarding loan advanced to complainant by OP-1. Grievance of complainant is that OPs have illegally issued insurance policy in the name of his son without his consent and now they are depositing payment of premiums through the cheques handed over by complainant to OP-1 which they demanded as security in repayment of loan sanctioned to him. From the careful perusal of version of OPs, it is observed that complainant applied for loan of Rs.1,25,000/-and same was sanctioned to him after deducting charges for processing fee and insurance premiums and remaining amount of Rs.1,16,142/-was paid to him. thus, OP-1 has admitted before the Forum that they deducted some amount on account of insurance premium from loan sanctioned to him. Had this thing in the notice of complainant, he would not have filed any application before SSP,

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Faridkot and fate of this complaint would have been different. Ops issued him said policy without his consent and without bring anything regarding said policy in his knowledge and misused the cheques procured from complainant in order to make payment of insurance premium. It amounts to deficiency in service and trade mal practice. On the other hand, OPs have nothing to contradict the pleadings of complainant.

12                                            From the above discussion, we are of the considered opinion that there is deficiency in service on the part of OPs. And therefore, complaint in hand is hereby allowed. Ops are directed to cancel the policy issued to complainant in the name of his son without his consent and refund the amount of Rs.10,283/- illegally debited from his account to make payment of insurance amount against policy in question. OPs are further directed to pay Rs.5,000/-to complainant as consolidated compensation for harassment and mental agony suffered by him as well as for litigation expenses. Compliance of this order be made within 30 days from the date of receipt of order, failing which complainant shall be entitled to proceed under Section 25 and 27 of the Consumer Protection Act. Copy of order be given to parties free of cost. File be consigned to record room.

Announced in Open Forum

Dated : 22.07.2019                 

 

(Parampal Kaur)                      (Ajit Aggarwal)

           Member                                   President