District Consumer Disputes Redressal Commission ,Faridabad.
Consumer Complaint No.41/2021.
Date of Institution: 21.01.2021.
Date of Order:21.11.2022.
Blue Stampings and Forgings Limited, Plot NO. 12, Sector-25, Ballabagarh, District Faridabad (Haryana) through its Managing Director.
…….Complainant……..
Versus
1. Hero FinCorp Ltd., registered office at 34, Community Centre, Basant Lok, Vasant Vihar, New Delhi – 110057 through its authorized Officer.
ii) Hero FinCorp Ltd. Corporate office at 9, Basant Lok, Vasant Vihar, New Delhi – 110 057 through its authorized officer.
iii) Hero FinCorp Ltd., A-44, 2nd floor, Mohan Co-operative Industrial Estate, New Delhi – 110044 through its authorized officer.
…Opposite parties……
Complaint under section-12 of Consumer Protection Act, 1986
Now amended Section 34 of Consumer protection Act 2019.
BEFORE: Amit Arora……………..President
Mukesh Sharma…………Member.
Indira Bhadana………….Member.
PRESENT: Sh. Abhishek Pareek, counsel for the complainant.
Ms. Dhreet Bhatia, counsel for opposite parties.
ORDER:
The facts in brief of the complaint are that in the month of August 2017, the authorized representative of the opposite party had approached the complainant at his office as mentioned in the title and body of the complaint and proposed the complainant about their various schemes and plans for providing business loan to carry out business activities. The same meeting further resulted into sanction of loan facility to the complainant vide sanction letter issued by the opposite party through Shri kartik Shrivastava, Ara Sales Manager of the opposite party vide reference No. Facility 1-2289246 & Facility2 0 2289242 dated 31.08.2017. the opposite party had sanctioned facility in the name of Facility he which envisage Machinery Term loan of Rs.2,97,67,500/- and facility 2 which envisage Working Capital demand loan of R.6,00,00,000/-. The opposite party had duly charged huge amount in the name of processing fee at the rate 0.50% of the sanctioned loan amount alongwith service tax at the applicable rate for the time being in force. The opposite party had charged amount of Rs.1,75,629/- over Facility 1 and Rs.3,54,000/- over facility 2 from the complainant as processing fee against sanction of the loan amount. On 20.02.2019 the complainant and the opposite party had convened a meeting which had been attended by the managing director of the complainant and two authorized officials of the opposite party for the closure and settlement of both the loan facilities 1 and 2 as mentioned Supra. In the meeting held on 20.02.2019 the complainant and the opposite party had settled and agreed to close all loan accounts loan accounts on one time payment of full and final amount of Rs.8,25,000/-. In furtherance to the minutes of the meeting held on 20.022019, the complainant through its managing director issued a
letter dated 20.09.2019 to the opposite party with regard to affirming closure of business loan account son payment of amount of Rs.8,25,000/- as full and final. Acting towards settlement of loan accounts at amount of Rs.8,25,000/- the opposite party issued settlement letter dated 18.03.2019 to the complainant. The opposite party submitted its acceptance to the settlement of loan accounts on payment of Rs.8,25,000/- on or before 25.03.2019. The opposite party mentioned that the complainant should make the payment of Rs.8,25,000/- on or before dated 25.03.2019 by means of cheque/demand draft/RTGS/NEFT Fund transfer/TDS Certificates. The complainant adhering to the terms and conditions to the settlement letter dated 18,03,2019 made the payment of Rs.8,25,000/- to the opposite party in the manner. The complainant after making the entire payment of settlement amount of Rs.8,25,000/- to the opposite party issued letter of final settlement dated 19.03.2019 which had been acknowledged by the opposite party vide acknowledgement dated 22.03.2019. Subsequent to the payment of full and final settlement of Rs.8,25,000/- the opposite party refused to hand over the original documents to the complainant despite of receipt of amount of Rs.8,25,000/- which were given at time of sanction of loan. The amount of Rs.8,25,000/- was settled and agreed by the opposite party being the “Amount of Settlement” as the loan accounts stand settled on payment of Rs.8,25,000/- and only after receipt of the amount of settlement the opposite party was under legal obligation to handover the original documents alongwith NO Objection certification to the complainant in adherence to the terms of the settlement agreement. On the arbitrary acts and conducts of the opposite party the complainant again approached the opposite party vide letter dated 27.03.2019 and requested to release the original documents and No Objection Certificate to the
complainant. The aforesaid act of opposite parties amounts to deficiency of service and hence the complaint. The complainant has prayed for directions to the opposite parties to:
a) handover the original letter of Bank of India,
b) issue No Objection Certificate to the effect of closure of loan account.
c) withdraw negative status from CIBIL.
d) pay Rs. 10,00,000/- as compensation for causing mental agony and harassment .
2. Opposite parties put in appearance through counsel and filed written statement wherein Opposite parties refuted claim of the complainant and submitted that on 31.08.2017 the complainant being Blue Stampings & Forgings Ltd. Through its Director Mr. Pawan Mantri alongwith Mrs. Krishna Mantri & Mrs. Nilam Rambilas Mantri approached the opposite party and expressed their wiliness to avail two financial facility in form of Machinery Term Loan and Working Capital demand Loan. Based on the representations givne by the complainant and the C-Borrowers to be true and correct, Opposite party had agreed to grant financial facility-1 of Rs.2,97,67,500/- and Financial Facility-II of Rs.6,00,00,000/- to the complainant and Co-Borrowers, vide Sanction letter bearing Reference No. facility 1 – 2289246 & Facility 2 – 2289242 dated 31.08.2017. Admittedly the complainant approached the opposite party for settlement and a settlement was arrived between the parties on 18.03.2019 as per which the complainant was required to make the payment of Rs.8,25,000/- as full and final settlement of loan accounts. It was also agreed that if the complainant fails to pay the settlement amount of Rs.8,25,000/- on or before 25.03.2019, the opposite party reserves its right to recover the entire outstanding amount as per its original claim as appearing
in the books form the complainant and the settlement on lump sum appearing in the books from the complainant and the settlement on lump sum amount shall stand nullified. Pursuant to the said settlement letter dated 18.03.2019, the complainant deposited a sum of Rs.4,78,548/- on 22.03.2019. However with regards to the balance amount of Rs.3,46,452/- the complainant failed to provide the interest calculation sheet basis which TDS return was filed. The opposite party sent an email dated 26.3.2021 as well as a letter dated 08.04.2019 wherein it was requested to provide interest calculation sheet for Rs.3,46,452/- basis which TDS return had been filed failing which the settlement shall stands cancelled. In response to the said letter dated 08.04.2019, the borrower sent a letter dated 12.04.2019 wherein it was merely said that the TDS certificate was already with the opposite party however the complainant failed to submit the said TDS certificate and meaning thereby the settlement stands cancelled and nullified. Opposite parties denied rest of the allegations leveled in the complaint and prayed for dismissal of the complaint.
3. The parties led evidence in support of their respective versions.
4. We have heard learned counsel for the parties and have gone through the record on the file.
5. In this case the complaint was filed by the complainant against opposite parties– Hero FinCorp Ltd. And Others. with the prayer to: a) handover the original letter of Bank of India, b) issue No Objection Certificate to the effect of closure of loan account. c) withdraw negative status from CIBIL. d) pay Rs. 10,00,000/- as compensation for causing mental agony and harassment .
To establish his case the complainant has led in his evidence,
Ex.CW-1/A – affidavit of Pawan Mantri, son of Shri Rambilas Asaram Mantri, Managing Director of Blue Stampings and Forgings Limited, Plot No.12, Sector-25, Ballabgarh,,Ex.CW-1 – resolution, Ex.CW-2 – Sanction letter, Ex.CW-3 – letter dated 20.02.2019,, Ex.CW-3/1 – postal receipt, Ex.CW-4 – settlement letter, Ex.Cw-5 - letter dated 19.3.2019, Ex.CW-6 – letter dated 27.03.2019, Ex.CW-6/1 – postal receipt, Ex.CW-7 – letter dated 08.04.2019, Ex.CW-8 – letter dated April 12,2019, Ex.CW-8/1 – postal receipt, Ex.CW-9 – letter dated 30.05.2019 (reminder), Ex.CW-9/1 – postal receipt,, Ex.CW-10 - Relationship beyond banking, Ex.CW-11 – Form No.16A,
On the other hand counsel for the opposite parties strongly agitated
and opposed. As per the evidence of the opposite parties, affidavit of Shri Pawan Mantri, son of Shri Rambilas Asaram Mantri, Managing Director of Blue Stampings and Forgings Limited, Plot No.112, Sector-25, Ballabgarh, Faridabad, Ex.R-1 - Resolution, Ex.C-2 – Sanction letter, Ex.R-3 - Settlement letter,, Ex.R-4 – letter dated 08.04.2019,
6. In this complaint, the complaint was filed by the complainant with the prayer to” a) handover the original letter of Bank of India, b)Issue No Objection Certificate to the effect of closure of loan account. c)withdraw negative status from CIBIL. d)pay Rs. 10,00,000/- as compensation for causing mental agony and harassment .
7. As per letter dated 18.03.2019 vide Ex.CW-4 at page No.21 & 22, at the bottom of page 21 it has been mentioned that “ In order to resolve all the disputes between HFCL and the addressee, you, the addressee vide email dated 21.02.2019 and subsequent meetings, have proposed to pay sum of Rs.8,25,000/- as full and final settlement on or before 25.03.2019 by means of cheque/demand
draft favouring Hero FinCorp Limited payable at New Delhi/RTGS/NEFT Fund Transfer/TD Certificate.” As per letter dated 19.03.2019 vide Ex.CW-5 which was duly received by the opposite party on 22.3.2019in which it has been mentioned that “your final settlement offer dated 19.03.2019, we irrevocably and unconditionally accept the contents of your letter and agree to abide by the same and made the following payment to you:
S.No | Particulars | Amount |
1. | RTGS dated 22.03.2019 | 478548.00 |
2. | TDS Certificate No. EWPNJWA (Q1-2018-19) | 153086.00 |
3. | TDS certificate No. QESWEXA (Q2-2018-19) | 113085.00 |
4. | TDS certificate NO. GZVAO1B(Q3-2018-19) | 80281.00 |
| G.Total | 825000.00 |
8. After going through the evidence led by the parties, the Commission is of the opinion that there is nothing balance qua the complainant. Account has been settled as per agreement. Last date was 25.03.2019 to complete the agreement which was duly done by the complainant. In the interest of justice, the complaint is allowed.
9. Opposite parties, jointly & severally, are directed to:
a) handover the original letter of Bank of India to the complainant.
b) issue No Objection Certificate to the effect of closure of loan account.
c) Do the needful for the correction of CIBIL of the complainant.
d) pay Rs.5500/- as compensation on account of mental tension, agony and harassment
e) pay Rs.5500/- as litigation expenses to the complainant.
Compliance of this order be made within 30 days from the date of receipt of copy of order. Copy of this order be given to the parties concerned free of costs and file be consigned to record room.
Announced on: 21.11.2022 (Amit Arora)
President
District Consumer Disputes
Redressal Commission, Faridabad.
(Mukesh Sharma)
Member
District Consumer Disputes
Redressal Commission, Faridabad.
(Indira Bhadana)
Member
District Consumer Disputes
Redressal Commission, Faridabad.
