Complaint No: 99 of 2020.

                                                                 Date of Institution: 14.10.2020.

                                                                        Date of order: 01.04.2024.

Prabhjit Singh Inspector Son of Sh. Aman Singh, resident of Shaheed Bhagat Singh Colony, Jail Road, Gurdaspur.

                                                                                                                                                       ....Complainant.  

                                          VERSUS

1.       Hindu Co-operative Bank, Dalhousie Road, Pathankot, through its Branch Manager. 

2.       Sohan Lal Son of Chuni Lal, resident of Sangalpura Mohalla, Gurdaspur, Employee of Hindu Co-operative Bank, Dalhousie Road, Pathankot.  

3.       Ram Lubhaya

4.       Amar Singh 

5.       Aman Mehta 

6.       Tara Chand 

7.       Ravinder Kumar Manager 

8.       Sanjeev Kumar 

9.       Rajiv Kumar

          All Employees of Hindu Co-operative Bank, Dalhousie Road, Pathankot District Pathankot. 

                                                                                                                                                 ….Opposite Parties.

                          Complaint Under section 35 of the Consumer Protection Act. 

Present: For the Complainant: Sh.G.S. Sohal, Advocate.

             For the Opposite Parties No.1 to 3 & 6: Sh.Sanjay Gulati,  Advocate.  

            Opposite Parties No.4,5,7,8 & 9: Given up. 

Quorum: Sh.Lalit Mohan Dogra, President, Sh.Bhagwan Singh Matharu, Member.

ORDER

Lalit Mohan Dogra, President.

          Prabhjit Singh, Complainant (here-in-after referred to as complainant) has filed this complaint under section 35 of the Consumer Protection Act (here-in-after referred to as 'Act') against Hindu Co-operative Bank Etc. (here-in-after referred to as 'opposite parties).  

2.       Briefly stated the case of the complainant is that the complainant is consumer of the opposite parties who availed the housing loan of Rs.22 Lacs which was sanctioned in the year 2012 @ 10% per annum as per RBI rules and regulations. It is pleaded that the loan was sanctioned on dated 28.06.2012 by the opposite parties and return period was of 7 years with the monthly installment @ Rs.32,000/- which was paid regularly by the complainant from his salary account, as the complainant was posted at Pathankot as Traffic Inspector. It is further pleaded that the opposite parties also took 4 blank cheques from the complainant, which they misappropriated and filed a false case of 138 of NI Act against the complainant by putting exaggerated interest amount in the cheque to swindle the complainant. Sometimes the clerk of the opposite party No. 2, resident of Gurdaspur alongwith the opposite parties No. 3 and 4 used to collect installments @ Rs.50,000/- per month from the house of the complainant at Gurdaspur and the complainant in good faith used to give installments to Sohan Lal to deposit it in the loan account of the complainant, but to the utter surprise of the complainant, the opposite party No. 2 cheated the complainant of  Rs.4,00,000/- and did not give any proof of deposit to the complainant despite of many requests and reminders by the complainant to the opposite party No. 6 who pre-passed the loan file of the complainant and the opposite party No. 7 who sanctioned the housing loan of the complainant, but all in vain. It is further pleaded that the complainant regularly paid the EMI’s to the opposite parties, but in the year 2018, the opposite parties with the intention to cheat the complainant misused the blank cheques and filed the amount in words and figures in the cheque No. 905414 and got the cheque dishonored on dated 27.02.2019 by charging an exaggerated interest on the loan amount despite of receipt of Rs.11,50,000/- as regular installments and committed unfair trade practice by filing complaint U/s 138 of NI Act on dated 28.06.2018 of the amount already received from the complainant. That not only this the complainant was put behind the bars for 4 days by the opposite parties during his service time record of which is available with the Jail Superintendent Pathankot.

It is further pleaded that the complainant approached numerous times for the explanation of exaggerated interest put in the blank cheque, but every time the opposite parties used to give lame excuses to the complainant and finally on dated 28.06.2018 they filed the false complaint against the complainant at Pathankot of the amount already received by them without giving any explanation to the complainant which was decided in the year 2020, which is clear cut deficiency in service by the opposite parties. The opposite parties have charged interest over interest from March 2020 during the pandemic of Covid-19 knowing well that there is financial crunch and it is difficult for the complainant to make both the ends meets. It is further pleaded that the opposite parties have swindled the complainant of Rs.11,50,000/- and have charged interest over interest during the pandemic of Covid-19 despite of directions by RBI and moreover CBI enquiry against the employees of Hindu Co-operative Bank is in progress as they have cheated numerous innocent customers like complainant while sanctioning loan and not issuing NOC / Receipt of the installments received by them to the complainant due to which the payment to be deposited by the complainant in appeal pending at Pathankot is getting late and the complainant is frantic as the opposite parties have left no stone unturned to defame him by putting banners of sale in his colony during the pandemic of Covid-19. It is further pleaded that the complainant suffered physical harassment and mental agony at the hands of the opposite parties for which he is entitled to:

• Rs.10,00,000/- (Ten Lacs) as compensation
• Rs.5 Lacs for causing mental agony
• Rs.1 Lac for litigation expenses alongwith
• The exaggerated amount of Rs.11,50,000/- received by them.  

It is further pleaded that the complainant approached the officials of the opposite parties again and again with folded hands and requested them to redress the grievance of the complainant and to admit his genuine claim, but the opposite parties showed reluctance / high headedness attitude and the officials of the opposite parties kept the matter lingered on one pretext or the other and now finally refused to admit the genuine claim of the complainant and they did not pay any heed towards the genuine request of the complainant. Due to this illegal act and conduct of the opposite parties the complainant has suffered great loss and also suffered mental agony, Physical harassment and inconvenience. So, there is a clear cut deficiency in service on the part of the opposite parties.  

        On this backdrop of facts, the complainant has alleged deficiency and negligence in service and unfair trade practice on the part of the opposite parties and prayed that necessary directions may kindly be issued to the opposite parties to issue NOC of the installments of Rs.11,50,000/- received by them against the housing loan of Rs.22 Lacs alongwith blank cheque taken by them at the time of sanctioning of loan in the year 2012 and the record of exaggerated interest @ 18% charged on loan amount of Rs.22 Lacs despite of RBI instructions during the pandemic of Covid-19 not to charge interest over interest from March 2020. The opposite parties have kicked out the law and have caused mental agony and harassment to the complainant for which he is entitled to Rs.15 Lacs as compensation and Rs.1 Lac for causing mental agony alongwith litigation expenses from the opposite parties. Any other order as deems fit by this Hon'ble Commission may also be passed, in the interest of justice alongwith counsel's fee.

3.       Upon notice, the opposite parties No.1, 2, 3 & 6 appeared through counsel and contested the complaint and filing their written reply by taking the preliminary objections that the present complaint is not maintainable. The opposite party No. 1 is a Co-operative Society and the opposite parties No. 2 to 9 are employees of the opposite party No. 1. It is pleaded that The Co-operative Societies are governed by Punjab Co-operative Societies Act 1961. As per the Section 79 of The Co-operative Societies Act 1961, no suit shall be instituted against a Co-operative Society or any of its officers in respect of any act touching the business of society until the expiration of three months’ notice in writing has been delivered to the Registrar or left at his office. No notice till date has been served to the Registrar as such the present complaint is not maintainable and is liable to be dismissed. It is further pleaded that the complainant took a loan of Rs.22 Lacs which was sanctioned in the year 2012, but it is wrong that the rate of interest was 10% per annum, the rate of interest as mentioned in the mortgage deed was/is 12.5% with monthly interest. The mortgage deed and all other documents were signed by the complainant at the time of obtaining the loan. It is pertinent to mention that the complainant undertook to pay penal interest @ 2% in case of default. It is further pleaded that no exaggerated interest has ever been charged. The cheques were given by the complainant of his own free will for the repayment of loan. The complainant has been convicted by the court of Sh. Parinder Singh ACJM Pathankot on 17.02.2020 for offences Under Section 138 of NI Act and it is correct that the complainant remained behind bars for 4 days in a case filed by the bank before the Arbitrator is per The Punjab Co-operative Societies Act 1961. It is further pleaded that the bank never swindled the complainant. It is the complainant who came to the bank to take loan. The interest is being charged as per the agreement and directions of RBI. It is wrong that CBI enquiry against the employees of Hindu Co-operative Bank is in progress. There is no CBI inquiry and the officials of the bank have not cheated its customers. The complainant is not paying any payment to the bank in respect of the loan and hence the bank is left with no option, but to recover its loan under SARFAESI Act and for that the opposite party has to comply with all the provision of Act i.e. putting banner for sale etc. It is further pleaded that the present complaint of the complainant is incorrect and there is no deficiency in service on the part of the opposite parties and no cause of action has arisen in favour of the complainant and complaint of the complainant is liable to be dismissed.

          On merits, the opposite parties No.1, 2, 3 & 6 have reiterated their stand as taken in legal objections and denied all the averments of the complaint and there is no deficiency in service on the part of the opposite parties. In the end, the opposite parties prayed for dismissal of complaint with costs. 

4.       Opposite parties No.4, 5, 7, 8 & 9 given up vide order dated 04.01.2023.

5.       Learned counsel for the complainant has placed on file affidavit of Prabhjit Singh, (Complainant) as Ex.CW-1/A alongwith other documents as Ex.C-1 to Ex.C-8 alongwith complaint.

6.       Learned counsel for the opposite parties No.1, 2, 3 & 6 has placed on file affidavit of Sh. Tara Chand, (Manager, Hindu Co-operative Bank Ltd., Pathankot) as Ex.OP-1 alongwith other documents as Ex.OP-2 to Ex.OP-6 alongwith reply.

7.       Rejoinder not filed by the complainant. 

8.       Written arguments not filed by both the parties.

9.       Counsel for the complainant has argued that complainant had obtained housing loan of Rs.22 Lakh with interest @ 10%. It is further argued that loan was repayable in 7 years with monthly installments of Rs.32,000/-. It is further argued that opposite parties had obtained 4 blank cheques from the complainant and thereafter by misappropriating the same opposite parties have filed complaint u/s 138 of NI Act. It is further argued that opposite party No.2 used to collect the installments of Rs.50,000/- per month from the house of the complainant but to the utter surprise of complainant, opposite party No.2 cheated the complainant of Rs.4,00,000/-. It is further argued that complainant regularly paid EMI to the opposite parties but in the year 2018 opposite parties with intention to cheat the complainant misused the blank cheques and filled the amount and filed criminal complaint u/s 138 of NI Act and thereafter complainant was put behind for 4 days by the opposite parties. It is further argued that opposite parties have swindled the complainant of Rs.11,50,000/- and charged interest over interest during the period of Covid-19 in violation of instructions of the RBI. It is further argued that opposite parties have cheated the complainant and are not issuing NOC and receipts regarding installments received by the opposite parties which amounts to deficiency in service.

10.     On the other hand counsel for the opposite parties No.1 to 3 and 6 has argued that this Commission has no jurisdiction to entertain and try the present complaint and complainant is barred u/s 79 of Co-operative Societies Act 1969. It is further argued that complainant is habitual defaulter of the bank and since the complainant failed to pay the regular EMIs and the cheques were given by the complainant of his own free will for repayment of the loan amount. It is further argued that complainant has already been convicted by the Court of Sh.Parinder Singh the then ACJM, Pathankot vide judgment dated 17.02.2020 and as such there is no deficiency in service as alleged by the complainant.

11.     We have heard the Ld. counsels for the complainant and opposite parties No.1 to 3 and 6 and gone through the record.

12.     Opposite parties No.4,5,7,8 and 9 given up. 

13.     To prove his case complainant has placed on record his duly sworn affidavit Ex.CW-1/A, copy of statement of account Ex.C1, copies of receipts Ex.C2 to Ex.C5, copy of certificate Ex.C6, copy of application Ex.C7 and copy of online instructions regarding RBI loan moratorium Ex.C8 whereas opposite parties No.1 to 3 and 6 have placed on record affidavit of Tara Chand Ex.OP-1, copies of mortgage deeds Ex.OP-2 and Ex.OP-3, copy of agreement Ex.OP-4, copy of pronote Ex.OP-5 and copy of statement of account Ex.OP-6.

14.     Perusal of statement of account Ex.C1 shows that complainant has never been regular in depositing the monthly installments in respect of loan obtained by the complainant and huge amount was outstanding payable by the complainant to the opposite party No.1 bank.

15.     As far as the plea of counsel for the complainant regarding fraud is concerned. This Commission is of the views that consumer commission has no power to deal with cases of fraud, as such cases requires cross and cross-examination of witnesses and competent Court to deal with such like cases is Civil Courts. Copies of mortgage deeds Ex.OP-2 and Ex.OP-3 shows that complainant has obtained loan from the from the bank after executing mortgage deeds which are duly registered with the office of Sub Registrar Gurdaspur and if the bank had filed complaint u/s 138 of NI Act in that case also bank adopted the prescribed due course of law for recovery of the amount and complainant was well within his right to prove his innocence before the court of law where proceedings u/s 138 of NI Act were already pending.

16.     From the facts, evidence on record we are of the opinion that complainant had failed to prove deficiency in service on the part of the opposite parties.

17.     Accordingly, present complaint being without merits is ordered to be dismissed with no order as to costs.

18.     The complaint could not be decided within the stipulated period due to heavy pendency of Court Cases, vacancies in the office and due to pandemic of Covid-19.

19.     Copy of the order be communicated to the parties free of charges. File be consigned.                                                                                                                                                               

            (Lalit Mohan Dogra)

                                                                                      President.  

Announced:                                                   (B.S.Matharu)

April 01, 2024                                                      Member.

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