Order No.  10  dt.  26/08/2019

            The case of the complainant in brief is that the complainant is an Administrative Officer of LICI and is entitled for concessional housing building loan under the staff scheme. LIC has outsourced the process and sanction staff concessional housing building loan to LIC-HFL of few years back. The complainant applied for renovation of his property which was sanctioned by LIC-HFL on 27.4.18. The complainant complied all the formalities and he also paid the processing fees for obtaining such loan. The complainant repeatedly made contact with LIC-HFL asking for releasing the loan, but no reply was provided to the complainant. The complainant, subsequently, came to know that his property documents for 2^nd mortgage with LIC-HFL against his previous loan for Rs.2,50,000/- is missing from their loan docket. The complainant had earlier obtained loan for Rs.7 lakhs for purchasing a ready built two storied house valued at Rs.14 lakhs. The complainant at the time of obtaining 2^nd loan came to learn that the custody of the documents are not with LIC-HFL and the documents are not traceable. The said fact was informed to LIC Zonal Office. The complainant also informed the said fact to CA & FBP, Govt. of West Bengal to solve the issue through mediation, but no fruitful result was achieved, for which the complainant filed this case praying for direction upon o.p. no.1 to sanction the loan against the application no.2119002418 as well as compensation and litigation cost.

                In spite of receipt notice the o.p. no.1 did not contest this case by filing w/v and as such, the case has proceeded ex parte against the o.p. no.1.

                The o.p. no.2 contested this case by filing w/v and denied all the material allegations of the complaint. It was stated that the complainant availed the house building loan from LICI for Rs.3,25,000/- @ 5% interest and Rs.3,75,000/- at the concessional rate given by LIC to its staff members / officials according to their cadre at the time of availing loan on 2.7.07. Thereafter the complainant applied for loan of Rs.2,50,000/- from LIC-HFL on 30.12.07. The complainant was informed by o.p. no.1 that his loan docket / property documents are not available and as such, they are not disbursing the loan to him. It was further stated that the complainant sent an e-mail whereby it was clearly stated that as per C.O. circular dt.31.7.02 it has been clearly mentioned that for disbursing loan by LIC-HFL 2^nd mortgage is to be created and the property / loan documents are to be sent to LIC-HFL. So it is apparent that LIC has sent the loan docket to LIC-HFL. The o.p. no.2 has no control over the day to day work of o.p. no.1. If LIC-HFL lost the loan docket it is the responsibility of o.p. no.1 to find out the documents from their office and o.p. no.2 cannot be held responsible for missing of the documents and o.p. no.2 is not deficient in providing any service to the complainant. The complainant has also in the petition of complainant categorically stated that his property document is missing from the loan docket from LIC-HFL, so the case filed against the LIC is to harass th4e o.p. no.2 without having any cogent reason whatsoever. On the basis of the said fact o.p. no.2 prayed for dismissal of the case.

                On the basis of the pleadings of parties the following points are to be decided:

1. Whether the complainant obtained loan from o.p. no.2 initially?
2. Whether o.p. no.1 granted subsequent loan in favour of the complainant?
3. Whether the documents relating to the mortgage are lying with o.p. no.1?
4. Whether non sanctioning of the loan tantamounts to deficiency in service on the part of o.ps.?
5. Whether the complainant will be entitled to get the relief as prayed for?

Decision with reasons:

                All the points are taken up together for the sake of brevity and avoidance of repetition of facts.

                Ld. lawyer for the complainant argued that the complainant is an Administrative Officer of LICI and is entitled for concessional housing building loan under the staff scheme. LIC has out sourced the process and sanction staff concessional housing building loan to LIC-HFL of few years back. The complainant applied for renovation of his property which was sanctioned by LIC-HFL on 27.4.18. The complainant complied all the formalities and he also paid the processing fees for obtaining such loan. The complainant repeatedly made contact with LIC-HFL asking for releasing the loan, but no reply was provided to the complainant. The complainant, subsequently, came to know that his property documents for 2^nd mortgage with LIC-HFL against his previous loan for Rs.2,50,000/- is missing from their loan docket. The complainant had earlier obtained loan for Rs.7 lakhs for purchasing a ready built two storied house valued at Rs.14 lakhs. The complainant at the time of obtaining 2^nd loan came to learn that the custody of the documents are not with LIC-HFL and the documents are not traceable. The said fact was informed to LIC Zonal Office. The complainant also informed the said fact to CA & FBP, Govt. of West Bengal to solve the issue through mediation, but no fruitful result was achieved, for which the complainant filed this case praying for direction upon o.p. no.1 to sanction the loan against the application no.2119002418 as well as compensation and litigation cost.

                Ld. lawyer for the o.p no.2. argued that the complainant availed the house building loan from LICI for Rs.3,25,000/- @ 5% interest and Rs.3,75,000/- at the concessional rate given by LIC to its staff members / officials according to their cadre at the time of availing loan on 2.7.07. Thereafter the complainant applied for loan of Rs.2,50,000/- from LIC-HFL on 30.12.07. The complainant was informed by o.p. no.1 that his loan docket / property documents are not available and as such, they are not disbursing the loan to him. It was further stated that the complainant sent an e-mail whereby it was clearly stated that as per C.O. circular dt.31.7.02 it has been clearly mentioned that for disbursing loan by LIC-HFL 2^nd mortgage is to be created and the property / loan documents are to be sent to LIC-HFL. So it is apparent that LIC has sent the loan docket to LIC-HFL. The o.p. no.2 has no control over the day to day work of o.p. no.1. If LIC-HFL lost the loan docket it is the responsibility to o.p. no.1 find out the documents from their office and o.p. no.2 cannot be held responsible for missing of the documents and o.p. no.2 is not deficient in providing any service to the complainant. The complainant has also in the petition of complainant categorically stated that his property document is missing from the loan docket from LIC-HFL, so the case filed against the LIC is to harass the o.p. no.2 without having any cogent reason whatsoever. On the basis of the said fact o.p. no.2 prayed for dismissal of the case.

                Considering the submissions of the respective parties it is an admitted fact that the complainant is an officer of o.p. no.2 and he obtained housing building loan from o.p. no.2 for purchasing a house. The complainant availed the maximum loan limit of Rs.7 lakhs and he also further obtained loan from o.p. no.2 on 30.12.07 to the tune of Rs.2,50,000/-. As per the circular being no.HPF/SNG/711 dt.29.01 LIC allowed its staff member to take further loan, if any, from LIC-HFL and in another circular it is clear from the materials on record that vide a circular issued dt.29.7.02 LICI modified its housing loan scheme for different cadre of its employees at concessional rate of interest. The complainant has also in the petition of complaint admitted that LIC-HFL being the 2^nd mortgagee had in possession of the documents relating to the property of the complainant and disbursed the loan of Rs.2,50,000/-. Subsequently it appears that whenever the complainant prayed for further loan amount, LIC-HFL informed the complainant that the documents relating to the said loan are not in the custody of o.p. no.1. The o.p. no.1 did not contest this case and whenever o.p. no.2 categorically stated that the documents were already handed over to LIC-HFL as per the circular dt.29.11.01 and subsequent sanctioning of loan in favour of the complainant to the tune of Rs.2,50,000/- on 30.12.07 clearly established the fact that o.p. no.1 after having such documents and while the documents are in custody of o.p. no.1 the loan was sanctioned in favour of the complainant. Therefore, from the materials on record it is crystal clear that since sanctioning of loan to its employees of o.p. no.2 has already been assigned to o.p. no.1 and as such, o.p. no.1 cannot be held liable for any loss sustained by the complainant. Since the complainant being an officer of LICI and he has failed to get further loan from o.p. no.1 and o.p. no.1 failed to trace out the documents, for which the complainant has suffered and thereby, we hold that there is gross deficiency in service on the part of o.p. no.1 and o.p. no. 1 must disburse the loan in favour of the complainant as well as to pay compensation and litigation cost. Thus all the points are disposed of accordingly.

                Hence, ordered,

                That the CC No.10/2019 is allowed ex parte with cost against the o.p. no.1 and dismisses on contest without cost against the o.p. no.2. The o.p. no.1 is directed to disburse the loan amount of Rs.8,40,000/- (Rupees eight lakhs forty thousand) only in favour of the complainant as well as to pay compensation of Rs.50,000/- (Rupees fifty thousand) only for harassment and mental agony and litigation cost of Rs.5000/- (Rupees five thousand) only within 30 days from the date of communication of this order, i.d. an interest @ 8% p.a. shall accrue over the entire sum due to the credit of the complainant till full realization.