Present:  1. Sri.P.K.Sasi, President.

                              2. Smt. Sheena.V.V., Member.

                              3. Sri.M.P.Chandrakumar, Member

28^th day of April 2017

C.C.581/16 filed on 22/09/2016

Complainant    :       Gijo Jose, Tharakan House, Thaikkad,

                                Nenmini P.O., Chavakkad, Thrissur.

                                (By Adv. A.D. Benny, Thrissur)

Opposite Parties :     1) Manager, Magma Fincorp Ltd., 2^nd Floor,

                                    E- Towns, Kizhakke Kotta,

                                    Thrissur – 680 005.

                                2) Magma Fincorp Ltd., Rep. by Managing

                                    Director, P.O. Vyttila, Pin – 682 019.

O R D E R

By  Sri.P.K.Sasi, President

        The case of the complainant is that he has availed a loan of Rs. 35 lakh from the opposite party on 10/6/15 vide No. HL/0157/H/14/000007. That loan was closed on 11/06/16 as per take over by Tata Capital Finance. At the time of closing the loan the opposite parties have charged Rs. 1,34,040.89 as pre closure charge from the complainant. Such an act of the opposite parties is illegal and also amounts to utter deficiency in service as well as unfair trade practice towards the complainant. The complainant has availed a Housing loan upon his individual capacity then collecting for closure charges from the complainant is illegal. Hence a lawyer notice was issued on 8/8/16. The opposite parties sent a reply with false allegations hence, this complaint is filed for getting relief.

        2) On receiving compliant notice was properly sent to both the opposite parties whereas, even after accepting the notice the opposite parties neither appeared before the Forum nor submitted any version. Hence both of them set ex-parte and posted for complainant’s evidence. From the side of complainant he has appeared before the Forum and filed proof affidavit in which he has affirmed and explained all the averments stated in the complaint in detail. He also produced 3 documents which are marked as Ext. P1 to P3. Ext. P1 is the copy of foreclosure termination report; Ext. P2 lawyer notice with postal receipts and Ext. P3 is the reply notice received from the opposite parties. Since there is no contra evidence available before us we are inclined to accept the proof affidavit filed by the complainant. We have gone through the contents of the affidavit and perused the documents produced. We also heard the learned counsel for the complainant in detail.

        3) The case of the complainant is that he has availed a Housing loan from the opposite parties and that was closed by taking over by another firm and at the time of closure the opposite parties have charged Rs.1,34,040.89 as foreclosure charges. The learned counsel argued that the complainant has availed a loan as his individual capacity and that can be seen from the Ext. P1 document. As per Ext. P3 reply notice it is admitted by the opposite parties that as per the circular of NBFC no charges shall be collected as foreclosure/repayment penalties on all floating rate term loans sanctioned, wherein all the borrowers are individuals only. If at all there was any contra evidence for the opposite parties that the loan availed by the complainant is not an individual capacity loan they ought to have appeared before the Forum and submitted their version. Nothing has been done by the opposite parties. Considering the points discussed hereinabove we are of the opinion that the opposite parties have committed deficiency in service as well as unfair trade practice by collecting Rs.1,34,040.89 as foreclosure charges from the complainant.

        In the result, we allow this complaint and the opposite parties are directed to return Rs.1,34,040.89 with 9% interest from 7/6/16 along with Rs.5,000/- as cost of this complaint to the complainant within one month from receiving copy of this order. Failing which, the complainant is entitled to get 12% interest for all those amounts till realization.

        Dictated to the Confidential Assistant, transcribed by her, corrected by me and pronounced in the open Forum this the     28^th day of April 2017.

             Sd/-                                  Sd/-                           Sd/-

M.P.Chandrakumar                 Sheena.V.V.                 P.K.Sasi, Member                                      Member                        President.

Appendix

Complainant’s Exhibits

Ext. P1 copy of foreclosure termination report

Ext. P2 lawyer notice with postal receipts

Ext. P3 reply notice received from the opposite parties.

                                                                                     Id/-

                                                                                President