D.O.F:13/07/2020
D.O.O:16/08/2022
IN THE CONSUMER DISPUTES REDRESSAL COMMISSION KASARAGOD
CC.No.76/2020
Dated this, the 16th day of August 2022
PRESENT:
SRI.KRISHNAN.K :PRESIDENT
SRI.RADHAKRISHNAN NAIR.M : MEMBER
SMT.BEENA.K.G : MEMBER
V. Gopalakrishnan
S/o. Vasu.M
Thottirakkath Puthan Veedu
Kollampara. P.O
Nelliyadukkam, Vellarikundu Taluk : Complainant
And
Manoj Kumar
Syndicate Bank Manager
Parappa Branch
V.V. Shopping Complex : Opposite Party
Parappa P.O, Vellarikund Taluk
Kasaragod Dist.
(Adv: Mohan Prakash.K)
ORDER
SRI.KRISHNAN.K :PRESIDENT
This consumer complaint filed under section 35 of Consumer Protection Act 2019. The averments in the complaint is that he was getting agricultural pension through his account in Opposite Party bank. The manager insisted Kissan card to continue to get pension. And advised to apply for loan and to produce documents relating to his properties. The complainant disclosed pendency of CC 65/2018 and pending AP 118/2020. Then Opposite Party replied that complainant will be provided with loan only after withdrawing these complaints. The Opposite Party rejected his application taking exception of unsatisfactory credit score in CIBIL. Thereby there is deficiency in service and negligence in rejecting request for Kissan Card and claimed compensation.
2. The Opposite Party filed written version. Opposite Party admitted that complainant is beneficiary of Prime Minister Kissan Samanj Nidhi Yojana and he is maintaining SB account with Parappa Branch. It is also admitted that he applied for KCC loan of Rs. 3,00,000/- it is found that CIBIL score is very low, there is an overdue amount of Rs. 1,52,640/- in his auto loan, that credit history is not satisfactory. Hence rejected that loan request. Complainant found not to be eligible for loan and have rightly denied loan request.
Complainant filed chief examination affidavit and cross examined as Pw1 Ext A1 and A2 marked from his side. Ext A1 is letter from Opposite Party Ext A2 is copy of Aadhar . The Opposite Party filed chief affidavit and was cross examination and as Dw1. Ext B1 to B8 documents marked from his side. Ext B1 is loan applications, Ext B2 statement of account, Ext B3 statement of account dated 15/03/2016. Ext B4 extract of CIBIL report, Ext B5 copy of letter dated 07/02/2020, Ext B6 copy of notification , Ext B7 copy of letter from RBI, Ext B8 is loan lending policy of bank.
4. Following points arise for consideration:-
a) Whether the reason in rejecting the request of KCC loan by complainant is in accordance with law?
b) Whether there is deficiency in service from Opposite Party? And whether complainant is entitled for compensation? If so for what reliefs?
The complainant applied for KCC loan is admitted by Opposite Party. The Opposite Party also admits that loan application is received from complainant and it is rejected for want of satisfactory CIBIL score and pending auto loan. Documents produced by Opposite Party also shows that there are certain guidelines /instructions to banks in considering the request for loan including consideration of pending dues with other financial institutions. Complainant availed auto loan is admitted and pending dues.
The Kerala High Court in a recent judgment 2022 Live Law (Ker) 217 held that the CIBIL Scores do not play a role is deciding applications for education loans since the eligibility conditions for sanctioning such priority sector loan should have a nexus with the object sought to be achieved by these loans. Agricultural loan is also priority sector. Court also observed that imposing such conditions would defeat the very purpose of granting such loans. Thereby discouraging banks from doing so. The Nationalized bank and scheduled banks will not be justified framing conditions for scrutinizing of such priority sector loans so as to defeat the very purpose of grant of such loans. The repayment capacity of complainant and property offered as security is not at all considered by the Opposite Party. It is guided only CIBIL score July 3rd 2017.
Master Circular : Kissan credit card (KCC) scheme
The RBI has issued guidelines on Kissan credit card (KCC) scheme from time to time. The Master Circular consolidates the relevant guidelines issued by the bank on Kissan Credit Scheme up t June 30 as listed in the appendix 12.2 security requirements may be as under.
- Hypothecation of crops: for KCC limit up to 2.00 lakh banks are to waive margin security requirements.
- With tie-up for recovery : Banks may consider sanctioning loans on hypothecation of crops up to card limit of Rs. 3 lakh without insisting security
- Collateral security: Collateral security may be obtained at the direction of bank for loan limit above 1 lakh in case of non- tie –up and above Rs. 3,00,000/- in case of tie – up advances.
- Banks have the facility of on line creation of charge on the land records, the same shall be ensured.
Therefore, the complainant allowed in part.The Opposite Party is directed to re- consider the loan request of complainant taking note of his repaying capacity including the production of title deeds of his property, its valuation income derived from their in and such other considerations.Wherein loan under agricultural scheme is in priority scheme.And inform the complainant of the decision of Opposite Party within one month from date of receipt of the order.The complainant has suffered great mental tension, and by the act of Opposite Party.There is deficiency in service and negligence in rejecting the loan application for which complainant is eligible for compensation and also cost of the litigation.
In the result complaint is allowed in part Opposite Party is directed to re-consider the loan request of complainant taking note of his re-paying capacity including the productions of title deeds of his property, its valuation income derived from therein and such other factors to consideration, where in loan under agricultural scheme is in priority scheme and inform the complainant of the decision of Opposite Party in one month from the date of receipt of the order.The Opposite Party is also directed to pay compensation of Rs. 10,000/- (Rupees Ten thousand only) for deficiency in service and Rs. 3000/- (Rupees Three thousand only) as cost of the litigation to the complainant with 30 days of the receipt of the order.
Sd/-Sd/-Sd/-
MEMBERMEMBERPRESIDENT
Exhibits
A1- Letter from Opposite Party
A2- Copy of Aadhar
B1- Loan applications
B2- Statement of account Dt: 14/03/2016
B3- Statement of account Dt: 15/03/2016
B4- Extract of CIBIl report
B5- Copy of letter Dt: 07/02/2020
B6- Copy of Notification
B7- Copy of letter from RBI
B8- Loan lending policy of Bank
Witness Examined
Pw1- V. Gopalakrishnan
Dw1- Manojkumar.P.S
Sd/-Sd/-Sd/-
MEMBERMEMBERPRESIDENT
Forwarded by Order
Assistant Registrar
Ps/
