Complaint filed on: 29-10-2021
Disposed on: 16-06-2022
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
#201, 202, 1st Floor, Indian Red Cross Building Complex,
Ashoka Road, Tumakuru-572 101.
CC.No.80/2021
DATED THIS THE 16th DAY OF JUNE, 2022
PRESENT
SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT
SRI.KUMARA.N, B.Sc. (Agri), LLB., MBA., MEMBER
SMT.NIVEDITA RAVISH, B.A., LLB. (Spl)., LADY MEMBER
Sri.R.Parameshwara
S/o late Rudrappa,
Aged about 54 years,
Residing at Sree Veerabhadraswamy
Nilaya, Behind Ganesh Temple,
Nagannanapalya, Sira gate Extension,
Tumakuru city.
……….Complainant
(By Sri.B.N.Rangaswamy, Advocate)
V/s
The Manager,
LIC Housing Finance Ltd., (LHF)
LIC branch-2,
2nd Floor, Near Siddaganga complex,
Tumakuru city.
……….Opposite Party
(By Sri.B.A.Gururaja, Advocate)
:ORDER:
SMT.G.T.VIJAYALAKSHMI - PRESIDENT
This complaint was filed by the complainant under Section 35 of Consumer Protection Act, 2019 to direct the Opposite party (hereinafter called as OP) to repay the amount of Rs.11,800-00 which was collected from the complainant by assuring sanction of loan in favour of complainant as per law interest from the date of payment of said amount till its realization @ 12% p.a. and compensation of Rs.2,00,000-00 towards mental pain, agony, communication and litigation expenses along with interest @ 12% p.m. and grant such other relief as prayed in the complaint.
2. The brief facts of complaint can be stated as under:
The complainant had approached the OP seeking sanction of loan Rs.20,00,000-00 for the purpose of construction of residential house and accordingly the complainant submitted the relevant documents pertains to his property as well as his income tax return etc. On verification of said documents, the OP had assured the complainant for sanction of loan and the complainant had prepared other thins for construction of house and intimated the same to his friends and relatives. Later the OP had accepted the entire records and sought for payment of service charges for prepare the necessary documents and accordingly the complainant had paid a sum of Rs.11,800-00 to the OP by way of cheque vide no.889032 and same was encashed by the OP on 21-6-2021.
2(a) The complainant further submitted that, on 21-6-2021 the OP contacted the complainant over phone to visit their LIC Housing Finance Loan Division, when he visited the OP office, at the time, the OP disclosed as civil point-1 is placed in the name of complainant and hence the OP repudiated the sanction of loan and returned all the property documents to the complainant. Further the complainant demanded to return the amount of Rs.11,800-00 which was paid to the OP towards service charges but the OP denied to return the said amount. The OP without proper reasons denied to sanction of loan and failed to repay the amount paid by the complainant, which is against the law and also breach of trust. The OP has not properly considered the documents properly and flatly rejected the same which is clearly establishes their deficiency in service and negligent act against the sanction of loan. On 23-7-2021 the complainant issued a legal notice to OP calling upon to settle the matter and said notice was duly served to OP, but the OP failed to pay the said amount. Hence, this complaint.
3. After the service of notice, the OP has appeared through its learned counsel and filed written version contending that, the complaint is not maintainable either in law or on facts and it is liable to be dismissed. Further the OP admitted to the extent of payment of service charges of Rs.11,800-00 and other averments of complaint is denied as false and the complainant to put to strict proof of the same. The OP further submitted that, the OP has collected process fee of Rs.10,000-00 + GST of Rs.1,800-00 total fee of Rs.11,800-00 through cheque and same is un-refundable as best know to complainant and the OP system is calculated the rate of interest on based on customer cibil point/score. The Complainant’s cibil score/point is “-1”, hence out system is not able to calculate the rate of interest and the OP not able to sanction of loan to the complainant. The OP further submitted that regarding process fee, since it is non-refundable amount but the OP higher authorities treated and considered the complainant as special case and ready to refund the 50% amount of Rs.5,000-00 out of process fee of Rs.10,000-00 and remaining GST amount of Rs.1,800-00 which is non-refundable and the OP has already paid to the government. After receiving the legal notice, on 11-8-2021 the OP replied to the said legal notice and after receiving reply notice, the complainant remained silent and not comes to OP office for settlement. Hence, there is no deficiency of service on the part of OP and prays to dismiss the complaint.
4. The complainant has filed affidavit evidence and produced Exs.P1 to P17 documents. On behalf of OP one Venkatramaiah Amuri, Area Manager, LIC-HFL, Tumkur has filed his affidavit evidence along with xerox copy of application, original copy of reply of OP dated 11-8-2021 and postal receipt and acknowledgement.
5. We have heard the arguments of the learned counsel for the complainant and OP and also perused the materials on record. The points that would arise for determination are as under:
1. Whether the complainant proves that there is deficiency in service on the part of OP?
2. Is complainant entitled to the reliefs sought for?
6. Our findings aforesaid points are as under:
Point No.1: In the affirmative
Point No.2: As per the final order
:REASONS:
Point Nos.1 and 2:
7. It is not in dispute that, the complainant had approached the OP seeking sanction of loan of Rs.20,00,000/- and accordingly, the complainant submitted the property documents, income tax returns etc. On verification of documents, the op had assured the complainant for sanction of loan. Later, the OP had accepted the entire record and sought for process fee. Accordingly, the complainant had paid a sum of Rs.10,000/- + 1,800 GST) to the OP by way of cheque vide No.889032 and the same was encashed by the OP on 21.06.2021.
8. As per complainant CIBIL score, the OP rejected the sanction of loan and returned all the property documents to the complainant. The complainant demanded to return the amount of Rs.11,800/- which was paid to the OP towards process charges/fees.
9. The contention of the OP is that, the process fee is not refundable as best known to the complainant. The complainant CIBIL score is “-1”, hence OP is not able to sanction loan to the complainant. The OP denied to refund of Rs.11,800/-, but the higher authorities treated and considered the complainant as special case and ready to refund the 50% amount i.e. Rs.5,000/- out of process fees of Rs.10,000/-. Remaining GST amount of Rs.1,800/- is non refundable and OP has already paid to the Government.
10. Generally, the process fee is to be paid along with the loan application itself and is non-refundable even if customers loan is not sanctioned due to any reasons. Banks use the money collected as processing fees charges to verify customer’s documents and complete various loan related formalities. In the instant case, the loan application itself i.e. Ex.P4, it is clearly mentioned that the process fees is non-refundable. But, the OP offered to refund 50% of Rs.5,000/- out of process fees of Rs.10,000/-. The OP’s higher authorities treated and considered the complainant as special case and ready to refund 50% of the process fees of Rs.10,000/- and same was communicated to the complainant in the reply to the complainant’s legal notice on 11th August 2021 (Ex.P3). But the complainant has not come forward to settlement or submitted the documents as required by the OP. Therefore, it is just and proper to direct the OP to pay Rs.5,000/- to the complainant and the complainant is not entitled to claim litigation cost. The complainant is also not entitled to claim compensation of Rs.2,00,000/-, because sanction of loan is prerogative power of the bank and the loan is rejected on the basis of CIBIL score “-1”.
Accordingly, we pass the following order;
-:O R D E R:-
The complaint is allowed in part without cost.
The OP is directed to pay Rs.5,000/- to the complainant with interest @ 8% PA from 21.06.2021( i.e., cheque encashed) till realization.
The OP is further directed to comply the above order within 30 days from the date of receipt/knowledge of the order.
Furnish the copy of order to the complainant and opposite parties at free of cost.
