Complaint filed on: 24/08/2023
Disposed on:17 /02/2024
BEFORE THE DISTRICT CONSUMER DISPUTES
REDRESSAL COMMISSION, TUMAKURU
DATED THIS THE 17th DAY OF FEBRUARY 2024
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SMT.G.T.VIJAYALAKSHMI, B.Com., LLM., PRESIDENT
SRI.KUMARA.N, B.Sc. (Agri), LL.B., MBA., MEMBER
SMT.NIVEDITA RAVISH, B.A., LL.B.(Spl)., LADY MEMBER
CONSUMER COMPLAINT NO. 116/2023
Sri.Channabasavaradhya H R
S/o Late H M Revanna,
A/a 72 years, R/o Jetti Agrahara,
C.N.Durga Hobli, Koratagere Taluk.
……….Complainant
(By Sri. H.C.Kumaraswamy, Advocate)
V/s
The Manager,
Kaveri Gramin Bank,
Now Karnataka Gramin Bank,
Koratagere.
……….Opposite Party/s
(By Sri. S.Raghunatha Reddy, Advocate)
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BY SMT.NIVEDITA RAVISH – LADY MEMBER
This complaint is filed by the complainant U/s 35 of Consumer Protection Act, 2019 against the Opposite Party [hereinafter called as OP] to direct the OP to 1)give clearance certificate to complainant 2)cancel registered DTD of complainant’s property and 3)hand over all original documents with regard to loan are named by OP as AGRI TERM LOAN-NON EI ATL – LAND BASED 131670011654 [Account No.42167326001810) and KCC – ST – CONVERTED LOAN MTL – MIDUM TERM LOAN 85010937970 [Account No.42167354001113], further prayed for to direct the OP to pay Rs.1,00,000-00 as a costs of litigation, mental agony and financial loss caused to the complainant.
2. It is the case of the complainant that, the complainant is a small farmer having his landed properties at Jetti, Agrahara Village, C.N.Hobli, Tumkur district. The complainant had availed agricultural loan of Rs.1,25,000-00 [one lakh and twenty five thousand only] from OP by mortgaging his landed properties on 26.05.2010 which was named by OP as AGRI TERM LOAN – NON EI ATL – LAND BASED 13167011654 [Account No.42167326001810) and KCC – ST – CONVERTED LOANS MIL – MEDIUM TERM LOAN 85010937970 [Account No.42167354001113]. Further, the OP has sanctioned loan and deposited the loan amount to complainant’s bank account and the OP did not explain how he had allocated the said loans and it was all done by OP of their bank accounts convenient. Further, the complainant submitted that though after receiving Rs.1,62,917-00 from Government of Karnataka as a loan waiver amount to the loan account of the complainant, the OP did not scarifies the 15% of the book balance of NPAs of the complainant loan account as per Karnataka Government orders No.FD 08 CAM 2018(P), Bengaluru dated:06.09.2018, and dated:14.06.2019. After this loan waiver scheme, the complainant has been continuously approaching the OP to give clearance certificate to his raised loan of Rs.1,25,000-00 and also to execute mortgage cancellation deed and return all his original records of title deeds as per DTD. But the OP officials have been dodging to clear/close complainant’s account and give clearance certificate and to return complainant’s DTD documents. Though issuing the legal notice on 15.06.2023, the OP has not waive up the loan of the complainant as per the Karnataka Government order towards loan waive off, OP has not closed the loan account, not gave clearance certificate and not canceled the registered DTD of complainant’s property. Hence, this complaint.
3. After receiving the notice by this Commission, the OP has appeared before this Commission through his counsel and filed the version. In the version, the OP has admitted that the complainant availed the loan by mortgaging landed properties of the complainant on 26.05.2010. Further admitted about the guidelines on waives of NPA loans under Karnataka Government Loan Waiver Scheme 2018, as per Government order No.F.D.08 CAM 2018(P), Bengaluru dated:06.09.2018, and dated:14.06.2019. But denied all other allegations made by the complainant as false. Further, the OP has submitted that the OP has sanctioned the two loans as per request of the complainant i.e. KCC loan (crop based loan) bearing its account No.85010937970 for Rs.75,000-00 and another loan i.e. land development loan bearing its account No.13167011654 for Rs.50,000-00. The KCC loan account is to be payable by the complainant within one year as per the terms and conditions or within one year the said account is to be renewed. However, the OP has charged interest for KCC loan account at first 7% and then it has charged 11.50% p.a. and for development loan, the rate of interest is charged as 12.50% p.a. Further, the OP has submitted that as per the Government circular for the year’s 2019, the KCC loan account of the complainant is eligible under the waiver scheme and as on 17.07.2019 the KCC loan account of the complainant is due Rs.2,08,716-00. Under waiver scheme interest adjustment by Act based TSCSC payment its No.0719173126842, the Government of Karnataka made payment of Rs.1,62,617-00 and after receipt of the said payment by the Government of Karnataka, the said KCC loan account of the complainant is due Rs.46,199-00. Further, the OP has submitted that since there is provision by the side of OP to sacrifice 15% of Book (bank) balance of NPSs and there is no provision to sacrifice Banks will waive the entire un-debited interest by the Bank. Hence, the OP has not waive the entire amount and as on 17.07.2019, the balance amount of Rs.46,199-00 is due by the complainant. Further, it is submitted that now the outstanding amount of the said KCC loan account is Rs.85,113-00 as on 06.04.2023 and there is a due of Rs.2,30,491-00 towards development loan account bearing No.13167011654 is payable by the complainant to the OP. Hence, the OP has prayed for the dismissal of the complaint filed against the OP.
4. The complainant has filed his affidavit evidence with 06 documents which are marked as Ex.C1 to C6. One Shri. Nikhil .S. Present Manager of OP has filed his affidavit evidence on behalf of OP with 04 documents.
5. The complainant has produced another 05 documents with memo in the time of arguments. Giving several opportunities, the OP has not addressed their arguments. We have heard the arguments of the complainant and points that would arise for determination as follows:
- Whether complainant proves the deficiency of service on the part of OPs?
- Is complainant entitled to the relief sought for?
- Our findings on the aforesaid points are as under:
Point No.1: Partly Affirmative
Point No.2: As per the final order for the following
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POINT NOS. (1) & (2):-
7. Counsel for the complainant has argued that the complainant has availed the agricultural loan of Rs.1,25,000-00 from the OP by mortgaging his landed properties on 26.05.2010, which was named by the OP as AGRI TERM LOAN – NON EI ATL – LAND BASED 13167011654 [Account No.42167326001810] and KCC – ST – CONVERTED LOANS MTL – MEDIUM TERM LOAN 85010937970 (Account No.42167354001113). The OP has admitted in the version that the complainant availed the above types of loans on 26.05.2010 by mortgaging his landed property. Ex.C1/copy of loan account statement produced by the complainant has reflecting that the complainant availed loan by name MIL – MEDIUM TERM LOAN 85010937970 and Ex.C2/copy of the loan account statement establishes that the complainant availed the loan type ATL – LAND BASED by the OP. Further, counsel for the complainant has argued that the OP had sanctioned loan and deposited the loan amount to complainant’s bank account and the OP did not explain how they had allocated the said loans and it was all done by OP for their bank account convenience. But the complainant has not produced any evidence or documents to establish that the OP has allocated the said loans for their bank account convenient. Per-contra, the copies of the loan application forms produced by the OP establishes that the complainant has requested to provide loan in two different types by signing on the loan application forms. Further, counsel for the complainant has argued that the OP has received an amount of Rs.1,62,917-00 by the Karnataka State Government towards loan account of the complainant as per the Karnataka Government crop loan waiver scheme 2018. The OP in the version admitted that they have received Rs.1,62,917-00 towards the complainant’s KCC loan account. Ex.C1 proves that the OP has received Rs.1,62,517-00 by the Act Based TSCSC OPMS F payment 0719173126842 on 17.07.2019. Further counsel for the complainant has contended that, the OP has not sacrifices 15% of the bank balance of loan account of the complainant and not closed the loan account of the complainant as per the Karnataka Government Crop Loan Waiver Scheme 2018, Govt. order No. FD 08 CAM 2018(P) Bengaluru dated:06.09.2018 and dated:14.06.2019. To prove the same the complainant has produced Ex.C6/copy of proceedings of the Government of Karnataka read Government order No.FD 08 CAM 2018(P) Bengaluru dated:06.09.2018 and also produced the copy of same order dated:14.09.2019. Further, complainant produced the Government order copy bearing No.FD 08 CAM 2018(P), Bengaluru 06.09.2018.
8. Per contra, the OP has submitted that the complainant approached and requested to provide agricultural KCC loan (crop based loan) and to provide land development loan by offering his landed properties for security of the loan account. Copies of the applications for the above loans produced by the OP are establishes the same and reflecting that the complainant has requested to provide Rs.50,000-00 as a loan for development loan [short term – mid term] and requested for provide Rs.75,000-00 as a loan for agricultural KCC loan [crop based loan] by offering the complainant’s landed properties Sy.No.14/4, Agrahara, 3.00 acre and Sy.No.13/1 Agrahara, I acre, 01 guntas. Further, the OP has submitted that the OP has sanctioned the land development loan bearing account No.13167011654 for Rs.50,000-00 and KCC loan [crop based loan] bearing No.85010937970 for Rs.75,000-00. Further, the OP has admitted that the Government of Karnataka made payment of Rs.1,62,617-00 towards the KCC loan account of the complainant on 17.07.2019 under the waiver scheme interest adjustment by Act based TSCSC payment its No.0719173126842. But in the same time, the OP has submitted that as on 17.07.2019, the KCC loan account of the complainant is due Rs.2,08,716-00 and after receiving Rs.1,62,617-00 by Government of Karnataka, the KCC loan account of the complainant is due with Rs.46,199-00. Ex.C1/copy of KCC loan account of the complainant reflecting the same. Further, the OP has submitted that since there is provision by the side of OP Bank to sacrifice 15% of the Book(Bank) Balance of NPAS, and there is no provision to sacrifice Banks will waive the entire un-debited interest by the Bank and therefore, the OP has not waive the entire loan amount and as on 17.07.2019 the balance amount of Rs.46,199/- is due by the complainant. Further, the OP has submitted that now the outstanding amount of said KCC loan is Rs.85113/- as on 06.04.2023. Copies of account statement pertaining to KCC loan of the complainant produced by the OP reflecting the same. Further, the OP has submitted that, the Government of Karnataka has not provided any amount to the development loan account of the complainant bearing account No.13167011654 for Rs.50,000-00 in the year 2010 and now said development loan account is due with Rs.2,30,491-00. Further, the OP has submitted that now the complainant is due totally Rs.3,15,604-00 including together KCC loan account and development loan account. Copies of above said loan accounts produced by the OP has reflecting the same.
9. On perusal of the Ex.C6/copy of proceedings of the Government of Karnataka, it is reflecting as in the point number b) of Page No.1 as,
“In case of loans with liability less than Rs.2.00lakh as on 31.12.2017, in case of all RRBs, the Government of Karnataka shall waive 85% book balance as on 31.12.2017 9cut off date0. The bank shall sacrifice 15% of the book balance of NPSs. In addition to this sacrifice banks will also waive the entire un-debited interest by the banks and the banks shall treat the accounts as closed”.
The OP has not raised any objection towards Ex.C6. The above point No.(6) of the loan waiver scheme of Government of Karnataka Government order No.FD(8) CAM 2018(P), Bengaluru dated:14.06.2019 is clearly mentioned that, “In case of loans with liability less than Rs.2.00 lakh as on 31.12.2017. The Ex.C1/copy of KCC loan account statement of the complainant reflecting that the balance of the complainant was Rs.1,62,117-00 as on 19.02.2018. Neither the complainant nor OP has produced the account statement of 31.12.2017. Hence, we have considered that the balance of KCC loan account was Rs.1,62,117-00 as on 31.12.2017, which was less than 2.00 lakhs. Further, point No.(b) of Ex.C6 explaining that “Government of Karnataka shall waive 85% book balance as on 31.12.2017 (cut off date). The bank shall sacrifice 15% of the book balance of NPAs. In addition to this sacrifice banks will also waive the entire un-debited interest by the bank and the bank shall treat the accounts as closed”. As per the provision of the above loan waiver scheme of Karnataka Government, the OP should sacrifice the 15% of the book balance of NPAs. The OP has not submitted or not produced any document to show that the OP has sacrificed the 15% of loan book balance. Further, though the Government of Karnataka has made payment of Rs.1,62,517-00 which is more than balance of Rs.1,62,117/- as on 31.12.2017, the OP has not sacrifice any balance amount. Point No.(b) of Ex.C6 clearly reflecting the direction to all banks as “In addition to 15% of sacrifice, banks will also waive the entire un-debited interest by the banks and banks shall treat the accounts as closed”. Though receiving the loan amount by the Government of Karnataka in the loan waiver scheme 2018, the OP has not waived the entire un-debited interest by the OP and not treated the KCC loan account of the complainant as closed and OP has till maintaining the KCC loan account of the complainant with due of Rs.85,133.17 as on 06.04.2023. This act of the OP is amounts to deficiency in service on the part of the OP. Hence, the OP is liable to close the KCC loan (crop based loan) bearing No.85010937970 (Account No.42167354001113) for Rs.75,000-00 and the OP is also liable to issue the clearance certificate towards the above said KCC loan account of the complainant.
10. Further, the complainant has prayed to direct the OP to cancel registered DTD of complainant’s property, to give the clearance certificate towards AGRI TERM LOAN – NON EI ATL – LAND BASED 13167011654 [Account No.42167326001810] and to hand over all original documents of the complainant. But the Government of Karnataka has not made any payments towards development loan account No.13167011654 new No.42167326001810 in the agricultural loan waiver scheme 2018. Hence, the complainant is liable to repay the due amount towards the above said development loan account. Further, simple mortgage deed pertaining to both loan accounts reflecting that the complainant has mortgaged his same properties for both loans. Hence, though there is closing of the KCC loan account, the mortgaged properties will be remaining with another loan account i.e. developmental loan account. Hence, the complainant has not eligible to get cancellation of registered DTD of complainant’s property and not eligible to receive all original documents of the complainant which are mortgaged with the OP.
11. Further, the complainant has prayed toward Rs.1,00,00-00 as cost of litigation, mental agony and financial loss and inconvenience caused to the complainant. But complainant has not produced any documents to show that he is eligible for award of Rs.1,00,000-00. The OP has not waived up the KCC loan account of the complainant, even though receiving Rs.1,62,617-00 by Government of Karnataka under the loan waives scheme 2018 and maintained the KCC loan account by adding interest as due of Rs.85,133.17 as on 06.04.2023. Hence, the OP is liable to pay compensation of Rs.10,000.00 to the complainant. Being responsible public Institution, the OP has not replied to the Ex.C5/legal notice issued by the complainant on 15.06.2023 and compelled the complainant to approach this Commission. Hence, the OP is liable to pay the litigation cost of Rs.10,000.00 to the complainant. Accordingly, we proceed to pass the following:-
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The complaint filed by the complainant is allowed in part with cost.
It is directed that the OP shall close the KCC-ST-CONVERTED LOANS MTL-MEDIUM TERM LOAN 85010937970[Account No.42167354001113] and issue the clearance certificate pertaining to the above loan of the complainant.
Further, it is directed that the OP shall pay compensation of Rs.10,000-00 and litigation cost of Rs.10,000.00 to the complainant.
Further, the OP is directed to comply the above order within 45 days from the date of receipt/knowledge of the above order.
Furnish copy of this order to both parties at free of costs.
