D.O.F:16/08/2021

                                                                                                     D.O.O:30/11/2023

IN THE CONSUMER DISPUTES  REDRESSAL COMMISSION, KASARAGOD

CC.135/2021

Dated this, the 30^th day of November 2023

PRESENT:

SRI.KRISHNAN.K                          : PRESIDENT

SMT.BEENA.K.G                              : MEMBER

1. Ragi C

D/o Gopalan Pedachi

Chenthatta House, Puthilot

Kodakkat Village

(PO) Kodakkat, Kasaragod Dist.

(PIN) 671310.

2. Gopalan Pedachi

Puthilot, Kodakkat Village

(PO) Kodakkat, Kasaragod Dist.

(PIN) 671310.                                                                                     : Complainants

3. Pushpalatha C

W/o Gopalan Pedachi

Chenthatta House

Puthilot, Kodakkat Village

(PO) Kodakkat, Kasaragod Dist.

(PIN) 671310.

                                                                                    And

The Manager

Canara Bank (e-syndicate)

Pilicode Branch

National Highway

Kalikkadavu

Pilicode (PO), Kasaragod.

(Adv: Mohan Prakash K.)                                                               : Opposite Party

ORDER

SRI.KRISHNAN.K  : PRESIDENT

            The case of the complainant is that the complainant No.1 availed an educational loan of Rs.1,84,700/- from opposite party No.1 bank for assistance to study BSc Nursing course.  Her father is the 2^nd and mother is the 3^rd co-obligent of the borrower father, petitioner No.3 is the mother of the 1^st petitioner.

            Due to Covid-19, loan is not repaid regularly Rs.59,675/- was advised for revenue recovery and RR notice which was processed to petitioner No.2, the only earning member of the family.  RR proceedings dropped on 05/08/2019.  Bank collected penal interest and debited from 23/10/2020 date of One Time Settlement.  Bank added interest thereafter on 31/10/2020, 19/11/2020, 30/11/2020 and 31/12/2020.  Thus there is deficiency in service when OTS scheme is accepted and amount due and shown there is paid, there complainant is entitled to amount paid or collected thereafter.

            The opposite party filed written version.  Bank admits availing of educational loan.  Bank accepted OTS scheme.  The complainant deposited Rs.29,300/-.  A sum of Rs.47,084/- is allowed to be credited to loan account by government as per letter dated 01/03/2021.  Payment was credited on 31/12/2020 after approval.  A sum of Rs.1,370/- was collected towards RR charges and thus complainant is not entitled for any refund.  And prayed for the dismissal of the complaint.

            The complainant filed chief affidavit and cross examined as PW1.  Ext.A1 to A6 documents marked from their side.  Ext.A1 is the consent letter of complainant No.1.  Ext.A2 is the consent letter from complainant No.2.  Ext.A3 is the notice from opposite party.  Ext.A4 is the statement of account.  Ext.A5 is the RR notice.  Ext.A6 is the receipt for payment.

            The opposite party filed chief affidavit.  Ext.B1 to B3 documents marked from their side.  Ext.B1 is the agreement executed by complainants.  Ext.B2 is the guidelines of educational loan and Ext.B3 is the statement of account.

The following points are raised for consideration in the case;

1. Whether there is any deficiency in service from opposite party?
2. Whether complainant is entitled for compensation?  If so, for what reliefs? 

All points considered together for convenience.

The grievance of the complainant is that they are not liable to pay any amount after fixing the liability under OTS scheme.  Amounts are collected after approval of any payments in OTS scheme.  Party paid Rs.29,300/- towards settlement on 23/10/2020, once entire amount due under OTS scheme is paid if any amount is credited by way of government subsidy, party is entitled to get refund of the amount collected in excess of amount due under OTS scheme.

The complainant though claimed refund of interest subsidy by government no pleadings to that end in complaint or evidence available.  Hence claim for interest free subsidy is not for refund by bank and hence claim is rejected.

Admittedly government subsidy of Rs.27,397.44/- is credited on 31/12/2020 by the time no amount is due by complainant bank since entire amount is already paid to bank as per settlement on 23/10/2020.  Of course Rs.1,370/- adjusted towards RR charge is justifiable.  But still complainant is entitled to refund Rs.27,397.44/- claim for refund towards interest collected is rejected.  Thus there is deficiency in service from opposite party bank in not refunding the subsidy amount after payment of entire amount as per OTS scheme for which opposite party is liable to pay compensation.

In the result, complaint is allowed in part.  The opposite party is directed to refund Rs.27,397.44/- (Rupees Twenty Seven thousand Three hundred Ninety Seven and Forty Four paisa only) collected in excess of agreed OTS to complainant with 8% interest from the date of complaint till realization.  And opposite party is also directed to pay RS.5,000/- ( Rupees Five thousand only) for deficiency in service and Rs.3,000/- (Rupees Three thousand only) as cost of litigation within 30 days of the receipt of the order.

Sd/-                                                                                                            Sd/-

MEMBER                                                                                                      PRESIDENT

Exhibits

A1 – Consent letter of complainant No.1

A2 – Consent letter of complainant No.2

A3 – Notices from opposite party

A4 – Statement of account

A5 – RR notice

A6 - Receipt of notice

B1 – Agreement executed by complainants

B2 – Guidelines of Educational loan

B3 – Statement of account

Witness cross-examined

PW1 – Gopalan

     Sd/-                                                                                                                   Sd/-

MEMBER                                                                                                      PRESIDENT

Forwarded by Order

                                                                                    Assistant Registrar

JJ/