Dtd.23.05.2024                                            A/134/2016

O R D E R

         BY Mr.K.B.SANGANNANAVAR : Pri.Dist & Session Judge (R) - JUDICIAL MEMBER.

1.    This is an appeal filed U/s.15 of CPA 1986 by Complainant/Appellant aggrieved by the order dtd.09.10.2015 passed in CC/11/2014 on the file of Haveri District Forum. (Parties to the appeal henceforth are referred to their rank assigned to them by the District Commission).

2. The Commission examined grounds of appeal, impugned order, appeal papers, and now, to decide whether the impugned order passed by District Forum does call for any interference for the grounds set out in the appeal memo?

3. Admittedly, OP is not a scheduled bank. The District Forum at the end of para 13 extracted page 6 of Ex-R2/Loan agreement which reads:

No prepayment allowed within six months from the date of first disbursement of the loan: In case of prepayment:

1. After six months but within 12 months from the date of first disbursement of the loan. 5% of the principal loan amount outstanding on the date of prepayment:
2. After 12 months the date of first disbursement of the loan: 4% of the principal loan amount outstanding on the date prepayment: or such other amount as may be specified FICCI. From time to time plus applicable taxes and for other statutory levies.
3. No part prepayment of the loan shall be allowed.

4. Further extracted the ratio of the case reported in 2015 CPJ September Vol.III, Chandigarh SCDRC (CN) Avon Industrial Corporation vs. ICICI Bank, wherein held “Loan – foreclosure – prepayment charges levied in accordance with terms and conditions of the agreement. Consumer Protect Act 1986 – Sections 2(1)(g), 15- Banking and Financial Institutions Services – Loan – foreclosure – prepayment charges levied – deficiency in service alleged – District Forum dismissed complaint – hence appeal – prepayment charges levied upon Appellant was in accordance with terms and conditions of the agreement – no deficiency in service attributable to OP.” It is therefore, admittedly when loan availed by the Complainant is not a home loan and he has questioned the validity of charging pre-closure charges, was rightly dealt by the District Forum. Hence we did not find any good grounds to interference in the impugned order. Accordingly ordered to dismiss the appeal. Consequently confirmed the order dtd.09.10.2015 passed in CC/11/2014 on the file of Haveri District Forum.
5. Notify copy of this Order to the District Commission and parties.

   Lady Member                                Judicial Member               

*NS*