BEFORE THE DISTRICT CONSUMER DISPUTES REDRESSAL FORUM ::

KADAPA Y.S.R DISTRICT

PRESENT SRI V.C. GUNNAIAH, B.Com., M.L., PRESIDENT

    SMT. K. SIREESHA, B.L., LADY MEMBER

                                                                             SRI M.V.R. SHARMA, B.A. MEMBER                               

Monday, 22^nd August 2016

CONSUMER COMPLAINT No. 97 / 2015

Veeraboyna Parasu Ramudu, S/o V. Venkataiah,

Hindu, aged about 56 years, residing at D.No. 1/2585,

LIG, APHB Colony, Kadapa City YSR  District.                         ….. Complainant.

Vs.

1.  The Regional Manager, IndusInd Bank Ltd.,

     Begumpeta Road, Patigadda, Secunderabad.

2.  The Branch Manager, IndusInd Bank Ltd.,

     Nagarajupeta, Kadapa city, Kadapa/YSR District.

3.  Mr. Rehaman, field Manager, Rep. by IndisInd Bank Ltd.,

     Nagarajupet, Kadapa.                                           ………Opposite parties.

This complaint is coming before us for final hearing on 11-8-2016 and perusing complaint and other material papers on record and on hearing the arguments of Sri G.M.B. Muralikrishna, Advocae for complainant and Sri S.S.D. Ramaswamy, Advocate for Opposite parties, the matter is having stood over for consideration this day, the Forum made the following:-

O R D E R

(Per Sri M.V.R. Sharma, Member),

1.             This Complaint is filed under section 12 of the Consumer Protection Act 1986 requesting this forum to direct the Opposite parties:-

(a) To pay sum of Rs. 18,00,000/-  covered under the subject matter with interest at 18% p.a. from the date of deduction i.e. 01-01-2014 till realization.

(b) To pay Rs. 78,625/- which was deducted from the Complainant’s account towards processing fee of loan sanctioning with interest at 18% p.a. from the date of deduction i.e. 01-01-2014 till realization.

(c) To pay sum of Rs. 25,000/- which was deducted from the Complainant’s account towards credit card charges with interest at 18% p.a.

(d) To pay sum of Rs. 10,000/- towards compensation for rendering deficiency of service.

(e) To pay a sum of Rs. 50,000/- towards for causing mental agony.

(f) Grant Rs. 10,000/- towards cost of this complaint and grant such other and further reliefs.

2.             The Complainant filed a complaint and stated that he is doing a business and manufacturer of barites powder in the name of M/s Parusharam & sons and he is a customer of the opposite party No. 2 (for short herein called as O.P) bank for the past 7 years bearing saving bank account No. 2000074711951.   He approached the O.P.2 bank to get loan, the bank officials given consent to sanction B.B.G loan and deducted processing charges an amount of Rs. 70,000/- and also deducted an amount of Rs. 8,652/- towards service tax and cess.  Hence, the total amount of Rs. 78,652/- deducted in the month of January 2014. 

3.             The Complainant further stated that he given his consent to become a life time member to the Opposite parties bank hence, they issued credit card and the O.P.2 deducted an amount of Rs. 25,000/- towards credit card  charges. Even though, the said card was not used by them.

4.             The Complainant also stated that the O.P’s not sanctioned loan and never activated the above said credit card and he made number of oral requests and also written request letters to the O.P’s on 5-7-2014 and 23-8-2014.  At last he issued a legal notice through his counsel on 25-12-2014 to the Opposite parties demanding them to repay the above said amounts along with interest.   After receiving the legal notice the O.P’s kept quite and not made payments so far and gave reply with false allegations.  Hence, this complaint. 

5.             O.P.2 filed counter and same is adopted by the O.P.1 and O.P.3.   

6.             The O.P.2 filed counter and stated that the complaint is not maintainable either in law or on facts.  The Complainant not a ‘consumer’ as defined under section 2 (d) of the C.P. Act.  The loan was applied by the Complainant for his firm M/s Parusaram & sons for business purpose (Commercial purpose).  Hence, C.P. Act will not applicable to him.   Though the loan was sanctioned but not availed by him due to non-fulfillment of sanction terms.  Hence, he never became a customer of bank.   Our staff had meticulously perused the documents and also took external advice with regard to title, over fresh properties intended to be mortgaged and accordingly, the complaint was issued sanctioned letter No. ZCC-2013/14, dt. 16-12-2013.  It  was also informed to him, if he is agreeable for the terms contained in the sanctioned letter then he had to submit the duplicate of sanction letter by countersigning it.  Which he accepted on 16-12-2013 upon acceptance of the sanctioned terms by him the processing fee along with service charges were realized and also stated that the Complainant had partially complied terms of the sanction and executed various documents and also created mortgage by depositing original title deeds.  Further he had to submit credit report from his existence bankers and also list of properties mortgaged with his present banker i.e. Central Bank of India, Kadapa which he failed to comply the same.  Even, many times this Opposite parties staff had personally approached to Central bank of India to get those pending details but the Central Bank Officials informed that without consent of the Complainant they would not part with those details and he had not given his consent for the reasons best known to him and therefore, the O.P.2 bank could not disburse the loan. 

7.             The O.P.2 further stated that after issuing of the credit card the bank had deducted Rs. 1,100/- p.m  towards credit card fee and thereby total amount of Rs. 25,000/- as per Reserve Bank guidelines.  Though, the said credit card was not used by him.   This O.P. was issued IndusInd signature credit card  with credit limit Rs. 3,00,000/- with life time charge of Rs. 25,000/- and he had executed auto debit mandate only for minimum amount.  During March 2014 he had requested the bank to refund charges alleging that he had not receiving welcome gift.  But the said welcome gift has been delivered to him in the month of June 2013 and also further stated that issuance of legal notice with false allegations on 25-12-2014 and the O.P. has issued suitable reply by refuting the allegations.  This O.P. not committed any deficiency of service the Complainant is not entitled any reliefs. The instant complaint is highly vexatious and it is liable to be dismissed in limini. 

8.                To prove his case the complainant filed an affidavit along with documents and got marked Exs. A1 to A8 and on behalf of the opposite parties Exs. B1 to B4 documents were marked.  Both parties are filed written arguments also. 

9.             On the basis of the above pleadings the following points are settled for determination. 

i.      Whether there is negligence or deficiency of service on the part of opposite parties?

ii.      Whether the complainant is eligible for compensation as prayed by him?   

3. To what relief?

10.            Point Nos. 1 & 2. The contention of the counsel of Complainant is that the O.P.2 deducted processing charges and service tax and cess from the account of Complainant for sanction of BBG loan, because due to non sanctioning of the loan the Complainant sustained loss and mental agony hence, the Complainant entitled for the above reliefs. 

11.            Per contra the counsel of the Opposite parties contended that the Complainant is not a consumer as defined under section 2 (d) of the C.P. Act.  The loan was applied by the Complainant for his firm business purpose.  After the loan was sanctioned, he not availed due to non fulfillment of sanction terms hence, there is no deficiency on the part of the Opposite parties. 

12.            According to the complaint the Complainant is doing business and manufacturer of barites powder in the name of M/s Parusaramudu & sons and he approached the O.P.2 to get loan the said bank officials given consent to sanction the loan after fulfilling of terms and conditions.  As seen Ex. B1 the bank officials issued sanction letter bearing No. ZCC 2013/14, dt. 16-12-2013  to the Complainant, subject to various terms and conditions which the Complainant accepted by counter singing it. After the counter signing  of letter which is issued by the O.P.2 then the O.P.2 realized the process fee of                                       Rs. 70,000/- service tax and cess of Rs. 8,650/- on 1-1-2014 as per Ex. B1.  As per agreement the Complainant had to submit credit report from his existing bankers and also list of property mortgaged with his present banker i.e. Central Bank of India.  Even though after signing the letter of sanction terms and conditions the Complainant not submitted the above said documents to disburse the loan also not proved that he is submitted the above said documents. 

13.            On the other hand issuing of credit card the Complainant contended that the O.P.2 bank deducted Rs. 25,000/- from his account as per Ex. A2 towards credit card life time charges even, though the said credit card was not used by him.  As seen from Ex. B4 executed by the Complainant he agreed terms and conditions of the O.P.2 signature credit card.  The O.P2 collected     Rs. 25,000/- as per Ex. A2 rules and regulations of RBI and also Complainant has not proved that he has not collected the welcome gift after issued by the O.P.2. 

14.            By over all considering documentary evidence placed by both parties the compliant claim is unsustainable.  The Complainant clearly stated in complaint that he is doing business.  Hence, he is not a consumer as defined in C.P. Act.  He has also not filed any report to prove that he sustained loss due to non disbursement of loan.  The Complainant has not fulfilled as per terms and conditions of the loan to disburse by Opposite parties and also he has not proved deficiency of service on the part of the Opposite parties.  Hence, the Opposite parties are not liable to pay the claim amount by the Complainant.  The complaint is liable to be dismissed.  Hence, the points are answered accordingly.

15.            Point No. 3. In the result, the complaint is dismissed, without costs. 

                   Typed to my dictation, corrected and pronounced by us in the open Forum, this the 22^nd August 2016

MEMBER                                           MEMBER                                        PRESIDENT

APPENDIX OF EVIDENCE

Witnesses examined.

For Complainant    NIL                                 For Opposite parties :       NIL

Exhibits marked on behalf of the Complainant   :- 

Ex: A1       Accounts of Statements showing the details of the complainant herein the month of January, 2014 and there by showing the                             details of deduction of amount towards processing fee for BBG and service Tax and Cess.

Ex: A2       Accounts of statements showing the details of the complainant herein showing the details of deduction of amount towards credit                      card charges.

Ex: A3       Letter Dt. 29-5-2014 to the Manager, Indus Ind Bank, Kadapa.

Ex: A4       Letter dt. 5-7-2014 to the Regional Manager, Indus Ind Bank, Hyderabad.

Ex: A5       Letter Dt. 23-8-2014 to the Branch Manager, Indus Ind Bank,  Kadapa.

Ex: A6       Legal notice dated 25-12-2014.

Ex: A7       Postal Receipts.

Ex: A8       Reply Letter dt. 01-12-2014.

Exhibits marked on behalf of the Respondents.    

Ex: B1       Photo copy  of sanction terms and conditions, Dated 16-12-2013.

Ex: B2       Photo copy of letter addressed by the complainant to the respondent bank, dated 22-1-2014.

Ex: B3       Photo copy of letter addressed by the respondent to Central Bank of India, Kadapa, Dt 22-1-2014.

Ex: B4       Photo copy of Credit Card acknowledgement form.

MEMBER                                            MEMBER                                    PRESIDENT

Copy to :-

1. Sri G.M.B. Muralikrishna, Advocate for Complainant
2. Sri S.S.D. Ramaswamy, Advocate for Opposite parties.

B.V.P