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GUJARAT STATE CONSUMER DISPUTES REDRESSAL COMMISSION, AHMEDABAD
MR. M.T. UNADKAT, MEMBER (JUDICIAL) & MRS. N.K. THAKER, MEMBER
DAYYABHAI KANABHAI - Appellant
Versus
ICICI BANK - Respondent
Appeal No. 19 of 2010
Decided On : 12-09-2014
Unfair Trade Practice - Consumer Dispute - 11.18% p.a., 18.13% p.a. - 11.18% p.a., 18.13% p.a., 22% - Consumer Protection Act
Fact of the Case:
The complainant, an agriculturist, borrowed a loan from the opponent bank to purchase a tractor and a trailer. The bank charged a higher interest rate than agreed upon, repossessed and sold the vehicles, and failed to return the original title deeds of the agricultural land.
Finding of the Court:
The court found that the bank engaged in unfair trade practices by charging a higher interest rate than agreed and repossessing the vehicles without rectifying the interest calculation. The court also found the complainant to be a consumer under the Consumer Protection Act.
Issues: The main issues were the unfair trade practices of the bank, repossession and sale of the vehicles, and the complainant's status as a consumer.
Ratio Decidendi: The court held that the bank's actions constituted unfair trade practices and that the complainant was a consumer under the Consumer Protection Act. The court also ordered the bank to return the original title deeds of the agricultural land to the complainant.
Final Decision: The appeal was partly allowed, and the bank was ordered to return the original title deeds of the agricultural land to the complainant. The court also confirmed the compensation awarded by the District Consumer Disputes Redressal Forum.
ORDER :
1. The appellant/original complainant has challenged the order passed by the learned Consumer Disputes Redressal Forum, Jamnagar in Complaint No. 215 of 2008 dated 5-12-2009. (The parties will be referred to as the complainant and the opponent for the sake of convenience).
2. Heard the learned advocate for the parties,
3. Following aspects are not in dispute :
The appellant original complainant is agriculturist having agricultural land at his village Thaker Sherdi, Taluka, District Jamnagar.
The opponent bank is a bank having its branch office at Jamnagar.
The complainant borrowed loan for a sum of Rs. 3,90,000/-to purchase a tractor and Rs. 60,000/- to purchase a trailer from the opponent bank on 21.9.2006 for agriculture till age and self employment. The appellant executed a hypothecation agreement in favour of the opponent bank on 21.9.2006 for the said loan.
As per the agreement and schedule the loan was repayable by the complainant in nine yearly installments. First installment was payable on 22.12.2006 and the last installments was payable on 22.12.2014. The rate of interest is mentioned in the schedule as 11.18%.
The complainant purchased the tractor and the trailer and started his agricultural activities. The opponent has given repayment schedule on 29.3.2007 to the complainant for the tractor and the trailer.
In the repayment schedule the rate of interest is mentioned as 18.13%. As per the repayment schedule, the complainant is liable to pay the installments for the tractor and the trailer as under:
Repayment schedule of the Tractor :
| Inst | Due Date | Opening Principle | Inst. Amount | Principal | Interest | Service | CI. Principal | Rate |
| 1. | 22.12.06 | 390000.00 | 21,734.00 | 03,859.33 | 17,874.67 | 00 | 386140.67 | 18.13 |
| 2. | 22.12.07 | 386140.67 | 95,085.00 | 25,071.79 | 70,013.21 | 00 | 361068.88 | 18.13 |
| 3. | 22.12.08 | 361068.88 | 95085.00 | 29,617.69 | 65,467.31 | 00 | 331451.19 | 18.13 |
| 4. | 22.12.09 | 331451.19 | 95,085.00 | 34,987.83 | 60,097.17 | 00 | 296483.36 | 18.13 |
| 5. | 22.12.10 | 296463.36 | 95.085.00 | 41,331.66 | 53,753.34 | 00 | 255131.7 | 18.13 |
| 6. | 22.12.11 | 255131.7 | 95.085.00 | 48,825.72 | 46,259.28 | 00 | 206305.98 | 18.13 |
| 7. | 22.12.12 | 306305.98 | 95.085.00 | 57,678.57 | 37,406.43 | 00 | 148627.41 | 18.13 |
| 8. | 22.12.13 | 148627.41 | 95.085.00 | 68,136.58 | 26,948.42 | 00 | 80490.83 | 18.13 |
| 9. | 22.12.14 | 80490.83 | 95.085.00 | 80,490.83 | 14.594.17 | 00 | 0 | 18.13 |
|
|
| Total | 782,41400 | 390,000.00 | 392,414.00 |
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|
|
Repayment schedule of the trailer :
| Inst | Due Date | Opening Principle | Inst. Amount | Principal | Interest | Service | Cl. Principal | Rate |
| 1 | 22.12.06 | 60000.00 | 3,344.00 | 593.86 | 2,750.00 | 00 | 59,406.14 | 18.13 |
| 2 | 22.12.07 | 594067.14 | 14.629.00 | 3,857.01 | 10,771.99 | 00 | 55,549.13 | 18.13 |
| 3 | 22.12.08 | 55349.13 | 14,629.00 | 4,556.40 | 10,072.60 | 00 | 50,992.73 | 18.13 |
| 4 | 22 12 09 | 50992.73 | 14,629.00 | 5,382.60 | 9,246.40 | 00 | 45,610.13 | 18.13 |
| 5 | 22.12.10 | 45610.00 | 14,629 00 | 6,358.61 | 8,270.30 | 00 | 39,251.52 | 18.13 |
| 6 | 22.12.11 | 39251.52 | 14,629.00 | 7,511.61 | 7,117.39 | 00 | 31,739.91 | 18.13 |
| 7 | 22.12 12 | 31739.91 | 14,629.00 | 8,873.67 | 5,755.33 | 00 | 22,866.24 | 18.13 |
| 8 | 22.12.13 | 22866.24 | 14,629.00 | 10,482.72 | 4,146.29 | 00 | 12,383.53 | 18.13 |
| 9 | 22.12.14 | 12383.53 | 14.629.00 | 13,383.53 | 2,245.00 | 00 | 0 | 18.13 |
|
|
| Total | 120376.00 | 60,000.00 | 66.376 | 00 |
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The complainant came to know that the bank has charged higher rate of interest i.e. 18.13% instead of 11.18%. The complainant personally met the officer of the bank and raised objections. The complainant issued legal notice to the opponent bank to calculate the interest as per the agreement dated 21.9.2006.
The complainant stopped paying the installments
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