IN THE CONSUMER DISPUTES REDRESSAL FORUM, ALAPPUZHA
Thursday the 30th day of March, 2017
Filed on 11.11.2011
Present
- Smt. Elizabeth George (President)
- Sri. Antony Xavier (Member)
- Smt.Jasmine.D. (Member)
in
C.C.No.368/2011
between
Complainant:- Opposite Party:-
Smt. Sheryll Ajith The Manager
Sheryll Gardens Canara Bank
Avalookkunnu P.O. Mullackal, Alappuzha
Alappuzha (By Adv. M.R.Chandralekha)
(By Adv. K.B. Sindhu)
O R D E R
SMT. ELIZABETH GEORGE (PRESIDENT)
This is a remanded matter. The case was once heard and the President of the then Forum passed an order on 30.04.2012 allowing the complaint. Since there was no detailed order, Hon’ble State Commission suomoto taken up the matter and remanded the case for hearing for the purpose of passing a speaking order. After remanded, notices were issued to both parties for hearing the matter.
2. The case of the complainant is as follows:-
The complainant has taken a loan of Rs.2 lakhs from the opposite party. As per the agreement entered between the complainant and opposite party, the loan amount with interest is to be paid in 60 installments. The monthly installment was fixed at Rs.4,110/-. The complainant repaid the entire repayment by June, 2011. The said amounts were recovered from the salary of the complainant from July, 2006 onwards. But opposite party issued a notice dated 22.10.2011 demanding Rs.53,520/- from the complainant as additional interest. Complainant is not liable to pay the said amount. Alleging deficiency in service on the part of the opposite party, the complaint is filed.
2. The version of the opposite party is as follows:-
The repayment condition agreed between the complainant and Bank was that it shall be repaid in 60 installments of Rs.4,110/-. This amount was fixed based on the rate of interest charged at the time of granting the loan (ie; 8.5%). Subsequently the BPLR of the Bank went upward and consequently the monthly installments necessitating the complainant to pay Rs.14,458/- to pay off her liability. Had she repaid the revised installments on account of change in the rate of interest, the account would have closed by July, 2011. The Bank notified such changes on its Notice Board and it is understood and agreed by the complainant as per the Take Delivery Letter signed by her. Complainant repaid 60 installments, but not the entire liability as per revised rate of interest. Complainant has to pay Rs.14,458/- to close the account. There is no deficiency in service on the part of the opposite party.
3. Complainant filed proof affidavit along with 5 documents which marked as Exts.A1 to A5. Opposite party field counter affidavit along with 5 documents which marked as Exts.B1 to B5.
4. The points for consideration are:-
1) Whether there is any deficiency in service on the part of the opposite party?
2) Whether the complainant is entitled to get any relief?
5. According to the complainant she availed a loan of Rs.2 lakhs from the opposite party on a fixed rate of interest ie. 08.5% on 2.3.2006 by way of personal loan. Ext.A2 is the financial terms for various loans between the Canara Bank and BSNL Employees. The opposite party also produced the same document and marked as Ext.B1. As per Ext.B1 for personal loan, the fixed rate of interest is shown as 8.5% per annum. According to the opposite party subsequently the BPLR of the Bank (Benchmark Prime Lending Rate) went upward and consequently the monthly installments necessitating the complainant to pay Rs.14,458/- as liability. It is pertinent to notice that as per Ext.A2 and Ext.B1 for personal loan the rate of interest is fixed @ 8.5% per annum. Ext.B2series (b) is a pro-note in which the rate of interest is clearly stated 8.5%. It is an admitted fact that the loan availed by the complainant is a personal loan. It is also an admitted fact that complainant repaid 60 installments. Since the complainant availed the loan under personal loan category and repaid the loan amount with fixed rate of interest @ 8.5% pr annum, opposite party estopped from claiming additional amount as interest from the complainant. Claiming additional amount from the complainant towards interest amounts to deficiency in service on the part of the opposite party. The impugned notice dated 22.10.2011 by the opposite party claiming interest in contravention of contractual rate shown in Ext.B2 series (b) is illegal, void and unenforceable.
In the result, the complaint is allowed. The opposite party is directed not to demand any further amount towards arrears of interest from the complainant with respect to the loan availed by the complainant. Since the primary relief is granted no further amount as compensation or costs. The order shall be complied within one month from the date of receipt of this order.
Dictated to the Confidential Assistant transcribed by her corrected by me and pronounced in open Forum on this the 30th day of March, 2017. Sd/-Smt. Elizabeth George (President) :
Sd/-Sri. Antony Xavier (Member) :
Sd/-Smt.Jasmine.D. (Member) :
Appendix:-
Evidence of the complainant:-
Ext.A1 - Registered letter dated 22.10.2011
Ext.A2 - Financial terms for various loans of Canara Bank
Ext.A3 - General terms and conditions of loans for BSNL Employees
Ext.A4 - General terms and condition to various retail loan
Ext.A5 - Copy of the statement of a/c for General Advances for the period from 1.6.2006
to 28.4.2011
Evidence of the opposite party :-
Ext.B1 - Copy of the Schedule – II – Annexure –B
Ext.B2 series (a)- Take Delivery Letter to DPN
Ext.B2 series (b)- Copy of the Pro-note
Ext.B3 - True copy of the registered letter dated 22.10.2011
Ext.B4 - True copy of the registered letter dated 22.10.2011
Ext.B5 - Acknowledgement of Debt and Security
// True Copy //
By Order
Senior Superintendent
To
Complainant/Opposite party/S.F.
Typed by:- pr/-
Compared by:-
