SMT. RAVI SUSHA: PRESIDENT
Complainant filed his complaint U/s 35 of Consumer Protection Act 2019 seeking to get an order directing opposite party to pay an amount of Rs.20,00,000/- paid by the complainant towards the course fee, to pay an amount of Rs.10,00,000/- towards the loss incurred to the ocmpklaiatn, to pay an amount o frs.10,00,000/- towards compensation of the deficiency in service and unfair trade practice of opposite party is and Rs.3,77,761/- taken as interest from the complainant.
Brief facts of the complainant’s case is that OP1 granted an education loan of Rs.25,00,000/- to the complainant for the entire course fee for his education in UK for the course of BSC Pharmaceutical Science. It is also a fact that OP bank has not disbursed the last semester fee is Rs.10,00,000/- to be paid to the university. It is also an undisputed fact that complainant’s father had availed housing loan, business loan, education loan to the complainant as well as to his brother by mortgaging one and same property. It is also a fact that OP bank had initiated SARFAESI proceedings against the mortgaged property due to the default committed by the complainant’s father in the housing loan. Complainant submitted that due to the non disbursement of the last installment, ie. last semester fee he could not complete the course. Complainant submitted that in WP(C) No.14423/21 before the Hon’ble High court. The OP submitted complaint has to produce title deeds of any other property to release the sanctioned loan amount. Therefore the complainant’s father again produced another original title deed of another property with supporting documents including tax receipt, location certificate and possession certificate. But the OP replied the documents are not satisfying them to release the amount. The OP dragged the matter before till the last date of payment of fee to the University. Thereafter the last date of payment was over and therefore the complainant was forced to withdraw the writ petition filed before the Hon’ble High court vide WP(C) No.14423 of 2021, since the time for payment was lapsed. This all happened due to the delay of the OP No.1 in processing the subsequent loan documents. Complainant further submitted that complainant could not complete his course due to adamant attitude, unfair trade practice and deficiency of the service on the par t of OPs. Hence the complaint.
After receiving notice OPs filed written version denying all the allegations of the complainant. It is submitted that OP had sanctioned an educational loan to Mr. Sammoh Saseendran on the guarantee of Mr. Saseendran K, who is also a co-obligant to the above loan. Considering the application, bank had sanctioned the loan to the complainant & his father, Mr. Saseendran who is a co-obligant / Guarantor to the loan. Apart from the education loans, Mr. Saseendran had availed a Housing loan from OP1. It is pertinent to note that all the loans were secured by house property owned by Mr. Saseendran. In these loan accounts, certain loan accounts became non-performing assets (NPA) as pet the extended guidelines of RBI, which ultimately disabled the OP to disburse the last installment of the education loan. In all the loans Mr. Sasindran was the co-obligant/ co-borrower. In fact, co-obligant Saseendran who preferred a writ petition (civil) ie.14423/21, on the file of High Court of Kerala, Ernakulam prior to the alleged date. Before the High Court of Kerala, Complainant’s father alleged that there is an action on the part of OP in disbursing the last installment of the education loan. After hearing in detail, the co-obligant noticed that he would get a set-back from High Court of Kerala, ultimately withdrawn the complaint. Concealing all these facts, complainant approached this forum with fabricated and ill designed allegation with an ulterior and ill motive. It is true to say that OP had linked the Education loans and housing loans executed in favour of the bank. Complainant had not followed the stipulation mentioned in the sanction letter NO.ALB/KNR/EDL-SAM/2018-19/517. A real violation is been done by the co-obligant in performing the contract executed with OP. Once the loan became non-performing asset (NP), Bank cannot disburse the alleged loan, Naturally bank, would initiate SARFAESI proceedings against NPA accounts. No cause for action for the complainant to file a complaint against the OP. Hence, prayed for the dismissal of the complaint.
Complainant has filed his chief affidavit and document. Complainant was examined s Pw1 and marked Ext.A1 to A11. Complainant was cross-examined for the OPs and marked Ext.B1 series, B1 (a) B1(b), B2 and Ext.B3. On the side of complainant two more documents were summoned through the senior manager, Indian Bank, Kannur, which were marked as Ext.X1 and Ext.X2. Ext.X1 is the statement of account of the complainant from 19/05/2018 to25/07/2023. Ext.X2 is the modification under Education loan scheme. Circular No.15668/2018-19/07 dated 05/05/2018 of Head office of OP bank.
After that the learned counsels of both parties filed their written argument notes.
Complainant’s case is that since complainant’s father’s housing loan had become due, OP No.1 did not transfer last course fee of Rs.9,00,000/- to the account of the University through education loan account with OP No.1. Further, submitted that though complainant’s father had submitted original title deed of another property with supporting documents before OP No.1 as per the direction of Hon’ble High court of Kerala in WP© No.14423/21, OP did not release the amount till the last date of payment of fee to the University. So the complainant could not complete the course.
On the other hand OP has submitted that OP had disbursed the initial course fee in three different intervals. When the 4th installment came for disbursal, the loans of the co-obligant became non-performing Account. Hence OP was restrained to disburse the last installment. Though notice was issued to his father, he did not clear the over dues. Hence SAFAESI proceedings were initiated. Further submitted that the additional documents submitted by complainant as per the order in writ petition of Hon’ble High Court, the properties are of wet land without any road access, so those property could not accept. Further the complainant’s father withdrawn the writ petition.
The undisputed facts in this case are that the OP1 granted an education loan of Rs.25,00,000/- to the complainant for the entire course fee for his education in UK for the course of BSC Pharmaceutical Science. It is also a fact that OP bank has not disbursed the last semester fee ie Rs.10,00,000/- to be paid to the university. It is also an undisputed fact that complainant’s father had availed housing loan, business loan, education loan to the complainant as well as to his brother by mortgaging one and same property. It is also a fact that OP bank had initiated SARFAESI proceedings against the mortgaged property due to the default committed by the complainant’s father in the housing loan.
Complainant submitted that due to the non disbursement of the last installment, ie. last semester fee he could not complete the course. Complainant submitted that in WP(C) No.14423/21 before the Hon’ble High court, the OP submitted that complaint has to produce title deeds of any other property to release the sanctioned loan amount. Therefore the complainant’s father again produced another original title deed of another property with supporting documents including tax receipt, location certificate and possession certificate etc. But the OP replied that the documents are not satisfying them to release the amount. OP dragged the matter till the last date of payment of fee to the University. Thereafter the last date of payment was over and therefore the complainant was forced to withdraw the writ petition filed before the Hon’ble High court vide WP(C) No.14423 of 2021, since the time for payment was lapsed. This all happened due to the delay of the OP No.1 in processing the subsequent loan documents.
Complainant alleged that complainant could not complete his course due to adamant attitude, unfair trade practice and deficiency of the service on the par t of OPs.
Here, it is a fact that the complainant’s education loan has not become due since the course was not completed on the disputed period. The repayment of the loan amount starts only after completing the course. In such a situation OP could have informed the complainant or his co-obligant (father of the complainant) to submit additional collateral security for disbursing her last installment of the education loan of the complainant at the proper time. Here it is seen that OP had strongly contested the matter before the Hon’ble High court in WP(C) No.14423/21. If the OP is intended to disburse the last installment, they would have given instruction to the loanee to submit additional property as security without waiting the last moment of remitting the course fee.
Hence considering the entire facts and circumstances of this case, we are of the considered view that there is deficiency in service on the part of OP bank. Hence complainant is entitled to get relief
In the result complaint is allowed in part. Opposite party is directed to pay Rs.10,00,000/- to the complainant towards compensation and also directed to pay Rs.5,000/- as cost of the proceedings of this case. Opposite party shall comply the order within 30 days from the date of receipt of the certified copy of this order. Failing which the compensation amount carries interest at 9% per annum from the date of order till realization. Complainant can execute the order as per provisions in Consumer Protection Act 2019.
Exts.
A1- Loan sanction letter
A2- Letter issued by Allahabad bank dated 19/05/2018
A3- Copy of possession notice dated 17/03/2020
A4-Letter issued by Debt collection manager, STA dated 04/06/2021(subject to proof)
A5- Letter dated 21/06/202021
A6- Copy of reply issued by 1st OP dated 21/06/2021
A7- Receipt issued by Manager dated 02/08/2021
A8- List of documents issued by advocate for Indian bank dated 03/08/2021
A9- Letter issued by Indian bank dated 03/08/2021.
A10- Order of Hon’ble High Court in WP©No. 14423/21
A11- Statement of Accounts dated 18/09/2021
B1(series)-Writ petition No.14423/21filed before Hon’ble High court
B1(a)-Order passed by Hon’ble High Court, Kerala in WP(C) No.14453/21
B1(b)- Judgment passed by Hon’ble High Court, Kerala in WP(C) No.14453/21
B2-Sanction letter of Education Loan
B3-Acknowledgement of sanction letter
X1-Statement of account from 19/05/18 to 25/07/23
X2-Modification under education loan
Sd/ Sd/ Sd/
PRESIDENT MEMBER MEMBER
Ravi Susha Molykutty Mathew Sajeesh K.P
(mnp)
/Forward by order/
Assistant Registrar
