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ANDHRA PRADESH STATE CONSUMER DISPUTES REDRESSAL COMMISSION
R. Lakshminarasimha Rao and Thota Ashok Kumar, Members
NIRMAL KUMAR PANDEY - Appellant
Versus
ICICI BANK LTD. AND ANR. - Respondents
First Appeal No. 845 of 2012
Decided on : 22-03-2013
Banking - Housing Loan - Contract Act - RBI Guidelines - [Section 13, Section 18, Section 21, Section 23, Section 25 of the Contract Act, RBI Guidelines] - The court discussed the appellant's contention of excess interest charges, lack of notice on change in interest rate, and unilateral extension of repayment period by the respondent-bank. The respondent-bank argued that the appellant was obligated to pay interest at the reset rate and that there was no violation of the Contract Act. The court referred to the RBI guidelines and previous dismissal of a similar appeal, ultimately dismissing the current appeal.
Fact of the Case:
The appellant availed a housing loan from LIC Housing Finance Ltd, which was taken over by the respondent-bank. The appellant alleged excess interest charges, lack of notice on change in interest rate, and unilateral extension of the repayment period by the respondent-bank.
Finding of the Court:
The court found that the appellant's subsequent conduct in maintaining silence until filing the complaint weakened his plea. The court also noted the previous dismissal of a similar appeal, leading to the dismissal of the current appeal.
Issues: Excess interest charges, lack of notice on change in interest rate, unilateral extension of repayment period, subsequent conduct of the appellant, dismissal of a similar appeal.
Ratio Decidendi: The court's decision was influenced by the appellant's failure to address the issue of obtaining his signature on a blank proforma, maintain silence until filing the complaint, and the previous dismissal of a similar appeal.
Final Decision: The appeal was dismissed, confirming the previous order in F.A.No.315 of 2012. No costs were awarded.
ORDER
R. Lakshminarasimha Rao, Member (Oral)- The complainant has filed appeal contending that the District Forum has not considered the evidence in proper perspective and allowed part of claim for refund of switch charges and disallowed consequential relief of the refund of excess collected interest and compensation for Rs. 5,00,000. And that the District Forum failed to consider the contractual obligations in relation to the rate of interest which should be in accordance with directions of the RBI and that the variation in rate of interest was not informed to the appellant and that the respondent-bank in order to divert the attention of the appellant as to the enhanced rate of interest, unilaterally extended period of repayment schedule.
2. The appellant availed housing loan from LIC Housing Finance Ltd and on agreement, the respondent-bank had taken over the loan from LCIHF under loan account bearing Number LBHYD 00000710800 to be repaid @ 7.25% in 252 EMIs @ Rs. 12,207 per month. The appellant came to know after going through statement of account dated 19.3.2008 that the respondent-bank charged excess interest than that was agreed and it was done without issuing notice to him. The respondent-bank obtained the appellant's signature on printed format without explaining him the terms and conditions thereof. The appellant got issued notice on 21.3.2008 and 12.6.2008 demanding the respondent-bank to foreclose the loan amount and refund the excess collected amount.
3. Further, it is the case of the appellant that the respondent-bank offered him switch over to new scheme whereby the rate of interest was reduced from 13.7% to 9.75% and the respondent-bank reduced the rate of interest after collecting 1.7% outstanding loan amount, Rs. 20,603 towards switch charges from the appellant. The respondent-bank had replied that it had intimated the appellant through post about the change in rate of interest and it had not explained why the switch charges were collected from him.
4. The respondent-bank resisted the claim on the premise that it had informed the appellant from time to time the change in rate of interest and that the appellant opted for floating rate of interest and he agreed to pay switch charges of Rs. 20,603 for reducing the rate of interest from 13.7% to 9.7% and respondent-bank applied concession of rate of interest of 3.75% to the loan account of the appellant. It is stated that the respondent-bank charged rate of interest as per the terms of sanction letter, loan agreement and guidelines of RBI.
5. The appellant filed his evidence affidavit and the documents Exs. A1 to A19. The respondents filed their affidavit evidence and the documents Exs.Bl to B6.
6. The District Forum awarded refund of switch charges of Rs. 20,603 and interest thereon @ 12% p.a. from 9.4.2009 and Rs. 2,000 towards costs. The District Forum opined that charging of switch over charges is against the terms of the supplementary agreement and the respondent-bank played unfair trade practice by not reducing the rate of interest as and when RBI reduced the rate of interest.
7. The Counsel for the appellant and the respondent-bank submitted written arguments.
8. The point for consideration is whether the order of the District Forum is liable to be set aside
9. The appellant availing of loan of Rs. 12,30,859 from LICHC and on agreement with the appellant, the respondent-bank taking over the loan from the LICHC are beyond any dispute. The appellant contends that the respondent-bank had charged excess amount towards interest and it had not informed him the change in rate of interest as also it had unilaterally increased the repayment period of loan. The appellant contends that the respondent bank has not informed him about the change in rate of interest and acted in such a manner so as to avoid his attention towards variance in the terms of the contract.
10. The respondent bank has contended that it has clearly mentioned the floating rate of interest was subject to ch
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