Per Mr.S.B. Sawarkar – Hon’ble Member:

1.       This appeal takes an exception to an order passed by the District Consumer Disputes Redressal Forum, Kolhapur, in Consumer Complaint No.CC/10/118 dated 27.07.2010 filed by the Dr.Himmatsinh Narayanrao Shinde (hereinafter referred to as ‘the Appellant/original Complainant’) against the LIC Housing Finance Co. Ltd. (hereafter referred to as ‘the Respondent/original Opponent’).  The District Forum allowed the complaint partly directing Respondent/original Opponent to pay to the Appellant/original Complainant  `5,000/- for mental agony and `1,000/- as costs of the litigation. 

2.       The Appellant/original Complainant in his complaint had complained that he had taken a loan of `2,95,000/- on 04.02.2006 from the Opponent.  The condition of the loan was of floating rate of interest and the duration of the loan was 20 years.  Equated Monthly Installment (‘EMI’ in short) was fixed at `2,376/-.  The Appellant/original Complainant had requested the Respondent/original Opponent to reduce the period of loan to 10 years, but it was not done.  At the same time when the rate of interest was increased, the Respondent/original Opponent raised the EMI to `2,521/-.  The Respondent/Opponent took blank promissory note and when he pre-closed the loan the Respondent/original Opponent levied penalty charges and adjusted the same as principal amount.  The Appellant/original Complainant also complained that the Respondent/Opponent deleted the paid EMI of `2,950/- from the computer and compelled him to pay `50,000/- under duress and fear of legal action against him.  The Complainant also complained that for payment of this loan and because of the pressure by the Respondent/Original Opponent to deposit the various amounts which became due, due to difference in increased rate of interest, he was required to sell his ornaments and was also required to take loan from many of his relatives for payment of the amount.  He therefore made a request for getting the deposit of `2,62,000/- from the Respondent/original Opponent with interest, and also the amount of EMI paid from 01.01.2007 to October, 2007 `28,133/- and `15,00,000/- for mental agony.

3.       The Respondent/original Opponent repudiated the complaint of the Complainant and submitted that when the Complainant had transferred his loan account no.47006477 to Axis Bank, they have returned all the eight promissory notes to the Complainant and have issued him ‘no dues certificate’.  The Complainant had pre-closed the loan account  by paying appropriate pre-closure charges.  As the Complainant has pre-closed all accounts  he is not a consumer of the Respondent/original Opponent and has no locus standi to file consumer complaint before it.

4.       The District Forum heard the Appellant/original Complainant and also Respondent/original Opponent in detail.  The District Forum discussed the process of taking loan by the Complainant of `2,95,000/- on 04.02.2006 with a floating rate of interest for a duration of 20 years.   The EMI appropriately fixed of `2,278/- at prevalent rate of interest of 7.5%.  But, thereafter, unfortunately, the rate of interest started rising from 7.5% to 9.5% and from 9.5% to 9.45% also.  Because of the rising rate of interest the EMI was changed to `2,950/-.  At the same time the Complainant had requested to reduce the duration of the loan which was no