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NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION (SINGLE BENCH)
Prem Narain, Presiding Member
ICICI BANK LTD. - Appellant
Vs.
MRINAL KANTI PAUL - Respondent
Revision Petition No. 3236 of 2017
Decided On : 09-04-2019
For the Appellant :Mr. Kashish Narang , Advocate
For the Respondent:Mr. Niraj Gupta, Advocate with Mr. U Ahmed Siddiqui, Advocate.
A loanee is considered a consumer of the bank that sanctions the loan, and interest is treated as consideration for the sanction of the loan.
Headnote:
Consumer Loan - Consumer Protection - [Consumer Loan] - [Consumer Protection Act, 1986, Section 2(1)(d)] - The court discussed the definition of a consumer under Section 2(1)(d) of the Consumer Protection Act, 1986, and held that a loanee is a consumer of the bank that sanctions the loan because interest will be treated as consideration for the sanction of the loan. The court found that the petitioner bank was guilty of deficiency of service and awarded compensation to the respondent for harassment, inconvenience, and mental agony caused.
Fact of the Case:
The respondent applied for a loan from the petitioner bank, which was not disbursed, resulting in the cancellation of the plot of land he intended to purchase. The respondent suffered financial loss and mental agony due to the bank's actions.
Finding of the Court:
The court found that the petitioner bank was guilty of deficiency of service and awarded compensation to the respondent for harassment, inconvenience, and mental agony caused.
Issues: The main issue was whether the respondent could be considered a consumer under the Consumer Protection Act, 1986, and whether the petitioner bank was liable for deficiency of service.
Ratio Decidendi: The court held that a loanee is a consumer of the bank that sanctions the loan because interest will be treated as consideration for the sanction of the loan. The court also found that the petitioner bank was guilty of deficiency of service.
Final Decision: The court reduced the awarded amount of compensation and ordered the petitioner bank to pay a reduced amount along with interest and litigation costs to the respondent.
JUDGMENT/ORDER :
Prem Narain,Presiding Member. - This revision petition has been filed by the petitioner ICICI Bank Ltd., against the order dated 25.10.2016 of the State Consumer Disputes Redressal Commission, Delhi, (in short 'the State Commission') passed in First Appeal No.1181 of 2012.
2. Brief facts of the case are that in September, 2006, the respondent herein applied for a loan of Rs. 2 lakh from ICICI Bank Ltd. through its Regional Manager, for the purpose of purchase of a plot of land measuring 112 sq. mtrs. from Mathura Vrindawan Development Authority. For procuring the loan, the respondent herein had offered his vehicle Mahindra Bolero for hypothecation. Value of the vehicle was Rs. 6,25,000.00. The petitioner bank accordingly sanctioned a loan of Rs. 2,00,000.00 to the respondent. In August, 2007, the respondent alleged that the loan amount was not disbursed despite the fact that the respondent moved from pillar to post in the petitioner bank. It was also requested by the respondent to remove the endorsement of hypothecation on the registration certificate of his vehicle so as to enable him to get loan from some other bank. It was further alleged by the respondent herein that with the aforesaid loss of time there was an escalation in the price of the plot and non-payment of the instalment of the plot resulted in its cancellation by Mathura Vrindavan Development Authority. It has been further alleged by the respondent herein that the said cancellation was however, restored on payment of a penalty of Rs. 27,675.00 along with restoration charges. It is further alleged by the respondent that he availed a loan from a private person on an interest @10% p.a.
3. Aggrieved, the respondent filed a complaint before the District Consumer Disputes Redressal Forum X, New Delhi (in short 'the District Forum') and the same was numbered as 590 of 2007. The petitioner resisted the complaint by filing replies. In the reply it was submitted that the complainant had applied for car overdraft facility on 12.09.2006 against his vehicle and the application of the respondent was approved by the petitioner bank. As per the process, the petitioner bank arranged hypothecation of his vehicle in its favour before disbursing the loan and as per the procedure the respondent herein had to supply the complete documents to the bank. It was further submitted that the respondent deliberately failed to supply the requisite documents despite several reminders and after waiting till 13.04.2007, the case was closed. In these circumstances, the loan was not disbursed.
4. On 23.11.2012, after hearing both the parties, the District Forum dismissed the complaint in view of the stand taken by the petitioner bank in the written statement/reply that they were ready and willing to return the Registration Certificate to the respondent herein after deletion of the entry of hypothecation. On 24.12.2012, feeling aggrieved by the said order passed by the District Forum, the respondent herein preferred an appeal before the State Commission. The said appeal was numbered as Appeal No.1181 of 2012. On 25.10.2016, the arguments on the said appeal were heard and the learned State Commission was pleased to allow the appeal and held that the petitioner bank was guilty of deficiency of service and awarded a compensation of Rs. 1,00,000.00 (inclusive of litigation charges) for harassment, inconvenience and mental agony caused to the respondent herein. It was further ordered in case the compensation is not paid within 30 days, the bank will have to pay interest @24% p.a. on the amount.
5. Hence the present revision petition.
6. Heard the learned counsel for the parties and perused the record. Learned counsel for the petitioner argued that the petitioner bank had sanctioned loan of Rs. 2,00,000/- to the complainant. However, complainant did not complete the formalities and did not file the relevant documents and, therefore, the amount could not be disbursed to the complainant. Therefor
