DISTRICT CONSUMER DISPUTES REDRESSAL FORUM-II
U.T. CHANDIGARH
Complaint Case No.: 1550 of 2008
Date of Inst:29.12.2008
Date of Decision:29.12.2009.
1. Ashok Paul Jagga s/o Late Sh.R.P.Jagga.
2. Aalok Jagga s/o Sh.A.P.Jagga.
Both residents of House No.755, Sector 22-A, Chandigarh.
—Complainants
V E R S U S
1. HDFC Bank Ltd., SCO 64-65, First Floor, Old Passport Building, Sector 34-A, Chandigarh formerly known as Centurion Bank of Punjab.
2. HDFC Bank Ltd., Sector 9, Madhya Marg, Chandigarh formerly known as Centurion Bank of Punjab.
—Opposite Parties
QUORUM
SHRI LAKSHMAN SHARMA PRESIDENT
SMT.URVASHI AGNIHOTRI MEMBER
SHRI ASHOK RAJ BHANDARI MEMBER
PRESENT: Sh.Aalok Jagga, Complainant No.2 in person.
Sh.Sandeep Suri, Adv. for OPs.
—
PER LAKSHMAN SHARMA, PRESIDENT
Sh.Ashok Paul Jagga and Sh.Aalok Jagga have filed this complaint under section 12 of the Consumer Protection Act, 1986 praying therein that OP be directed to :-
i) Refund Rs.47,320/- towards illegal foreclosure charges/prepayment penalty.
ii) Refund Rs.36,600/- charged by OPs as installment for the month of October, 2008 despite the fact that the loan was cleared on 04.10.2008 along with interest 18% p.a. till date of payment.
iii) Pay Rs.80,000/- incurred towards availing the loan of Rs.12.5 lacs from J & K Bank Ltd. along with interest 18% p.a. till date of payment.
iv) Pay Rs.1,00,000/- as compensation for mental as well as physical harassment etc.
v) Pay Rs.15000/- as costs of litigation.
2. In brief, the case of the complainants is that they availed the credit facility by way of loan in the month of March, 2006 for an amount of Rs.28 lacs for purchasing a new House No.2374, Sector 22-C, Chandigarh by mortgaging title deed of the house in question with the OP-Bank. The complainants approached OP-Bank in May, 2006 for clearing the entire loan but the Bank informed them that in case of pre-payment within 6 months from the date of disbursement, penalty @ 2% would be charged. According to the complainants, they had paid the monthly installments of Rs.36,600/- approximately throughout the period of 3 years without any default. The complainants decided to sell the house in question to Sh.Jai Inder pal Singh to meet their financial needs and therefore, they approached the Bank for prepayment of the loan amount. As per the calculation chart, the complainants were required to pay as :-
Principal outstanding : Rs.13,45,178.32
Interest for the month : Rs.3,59,282.68
Foreclosure charges @ 1.69% : Rs.47,320/-
at outstanding principal
Overdue installments : Rs.0
Rebate (-) : Rs.3,46,204.56Ps
—————-
Total Payable : : Rs.14,05,576.44/-.
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According to the complainants, the penalty @ 1.69% on the principal amount of Rs.13,45,178.32 P comes to Rs.22,733/- instead of Rs.47,320/- which itself shows deficiency in service on the part OPs. The complainant requested several times to OPs for rectification of the statement of accounts but to no effect. The OPs informed the complainants that the date of calculation of the total amount due i.e. Rs.14,05,576.44 was as on 03.10.2008 and in case the payment was received after this date, an additional interest of Rs.467.08 would be charged for every day. According to the complainants, they have paid Rs.14,07,444/- on 04.10.2008 vide cheque No.667020 drawn on Karnataka Bank and this amount included Rs.14,05,776/- and Rs.1868/- (467.08×4 days i.e. the date of realization of the cheque). In this way, OPs had charged the interest for the next four days also i.e. till 08.10.2008. After clearing the loan account, OPs failed to deliver the title deeds of the house in question to the complainants which they had to deliver to the purchaser for getting the property transferred in his name i.e. by 06.10.2008. Consequently, the complainants had to avail another loan from Jammu and Kashmir Bank Ltd., Sector 21, Panchkula for remitting the funds to the seller of the Zirakpur property to an extent of Rs.12.5 lacs on 06.10.2008 for purchasing the said house. According to the complainants, the title deeds of the house in question were handed over to them on 11.11.2008 despite the fact that the loan had been cleared on 04.10.2008. In these circumstances, the present complaint was filed seeking the reliefs mentioned above.
3. In the reply filed by OPs, the factum of availing the loan of Rs.28 lacs by the complainants for the purchase of the house in question has been admitted. It has been denied that the complainant has been wrongly charged the foreclosure charges @ 1.69% and that there is a mathematical mistake in the calculation of the foreclosure charges as mentioned in Annexure C-2. It has been pleaded that as per the loan agreement, in case of closure of the loan prior to the agreed tenure, the complainants would liable to pay an amount equivalent to 1.5% (for closure within 5 years) of the total loan availed from the bank plus such statutory levies and taxes at the time of closure of the loan; that said foreclosure/pre-payment was 1.5% of the total loan and the component 0.19% is statutory taxes and levies as applicable; that the complainant has been rightly charged an amount of Rs.47,320/- being 1.69% of the total loan amount of Rs.28 lacs; that it has been inadvertently mentioned in Annexure C-2 that the amount is payable on the outstanding principal instead of original loan amount though the calculation has been made as per the original loan amount; that the loan with the OP bank had not been taken over by the J & K Bank; that the Bank is not responsible for sale of the property or for the purchase of the subsequent property; that the cheques in respect of the EMIs payable to the Bank are presented centrally and are dispatched in the manner so that the same are presented for clearing on the due dates (5th in the present case); that the amount of the installment so received by Bank for the month of October, 2008 has been duly refunded to the complainant and the bank had also offered the payment of interest on the same to the complainant; that on encashment of the cheque towards closure of the loan, after due sanctions, the necessary request is raised with the agency in whose safe custody the documents are maintained and the same are then retrieved and sent to the concerned office for the purposes of further transmission of the same to the loanee and for that purpose 30-40 days are required. All other averments made in the complaint are denied. In these circumstances, according to OPs, there is no deficiency in service on its part and the complaint deserves dismissal.
4. We have heard the complainant in person and learned counsel for the OPs and have gone through the entire record including documents, Annexures, affidavits etc.
5. The first argument advanced by the complainants is that vide letter dated 03.10.2008 (Annexure C-2), OPs had demanded the foreclosure/pre-payment charges @ 1.69% on the outstanding principal amount whereas in fact they have charged a sum of Rs.47,320/- on the total loan amount. This act of the OPs, according to the complainants, amounts to deficiency in service and they are entitled to the return of the sum of Rs.24,587/- (Rs.47320- Rs.22733/-) being paid in excess as foreclosure/pre-payment charges. On the other hand, it was argued by the learned counsel for OPs that as per the terms and conditions of the loan agreement as contained in clause No.2.9 & Schedule 7, the complainants are liable to pay the foreclosure/pre-payment charges @ 1.69% on the total original loan amount and not on the outstanding principal amount on the date of its payment. We have gone through both the documents. It is correct that in the loan agreement, it has been mentioned that the complainants shall be liable to pay the foreclosure/pre-payment charges @ 1.69% on the total original loan amount. However, in letter (Annexure C-2) issued subsequent to the loan agreement, it has been mentioned that the foreclosure/pre-payment charges are payable only on the outstanding loan amount. By this letter (Annexure C-2), the clause No.2.9 & Schedule 7 of the loan agreement in question stands amended to the extent mentioned in the letter (Annexure C-2). So the complainants are liable to pay the foreclosure/pre-payment charges @ 1.69% only on the outstanding principal amount of Rs.13,45,178.32. Thus, a sum of Rs.24,587/- has been charged in excess from the complainants as foreclosure/prepayment charges and the complainants are entitled to the return of this amount.
6. Admittedly, the OPs had deducted a sum of Rs.36,600/- towards the installment for the month of October, 2008 despite the fact that the complainants had already paid the entire outstanding loan amount by that time. The said amount is stated to have been refunded later by the OPs. However, the complainants are entitled to an interest @ 12.5% on the amount of Rs.36,600/- from the date of its deduction till the date of its payment.
7. The next argument advanced by the complainants is that despite the fact that the entire loan amount was repaid on 04.10.2008, the title deeds of the mortgaged house were returned on 11.11.2008 i.e. after 37 days. To our mind, in view of the provisions of Transfer of Property Act, OPs were liable to return title deeds of the house in question immediately after payment of the entire loan amount. Admittedly, OPs took 37 days for return of the title deeds of the house in question which amounts to deficiency in service on their part. So the complainants are entitled to sum of Rs.25,000/- as compensation for mental agony and harassment on account of the said deficiency in service. In addition to this, the complainants are also entitled to a sum of Rs.5000/- as costs of litigation.
8. In view of the above findings, this complaint is allowed with a direction to OPs to refund the sum of Rs.24,587/- having been charged in excess towards foreclosure/pre-payment charges @ 1.69% on the original loan amount and to pay the interest @ 12.5 % p.a. on the amount of Rs.36,600/- from the date of its deduction till its payment to the complainants. The OPs are directed to pay to the complainants a sum of Rs.25,000/- as compensation for causing mental agony and harassment to the complainants and deficiency in service. In addition to this, the OPs are also directed to pay to the complainants a sum of Rs.5000/- as costs of litigation.
9. This order be complied with by the OPs within one month from the date of receipt of its certified copy, failing which the OPs shall be liable to refund the amount of Rs.25,000/- to the complainant along with penal interest @ 18% p.a. from the date of order till its realization besides costs of litigation.
10. Certified copy of this order be communicated to the parties, free of charge. After compliance file be consigned to record room.
Announced
29.12.2009.
Sd/-
(LAKSHMAN SHARMA)
PRESIDENT
Cm
Sd/-
(URVASHI AGNIHOTRI)
MEMBER.
Sd/-
(ASHOK RAJ BHANDARI)
MEMBER
Tags: HDFC Bank