(Passed on 13.01.2014)

Per Mr N Arumugam, Hon’ble Member

          This is an appeal filed by the original complainant against the order dtd. 22.01.2009  passed by Addl. District Consumer Forum, Nagpur in consumer complaint No.CC/08/381 (Old) & CC/08/144 (New) directing the O.P. to give credit to the complainant of Rs.786/- by making necessary correction, to pay Rs.25,000/- towards mental & physical harassment and also to pay Rs.1,000/- towards the cost of proceeding.

The facts of the case in brief are as under:-

1.      The complainant availed the housing loan of Rs.5.50 Lacs from the O.P. Bank @ 8% p.a. (variable rate of interest with monthly rest basis). Accordingly, the EMI was being paid by the complainant.  According to the complainant the Bank charged extra interest Rs.1,23,263.51 and also charged Rs.960.39 and Rs.786.75 as a fine.  Hence, the complainant made correspondences with the Bank about the charging extra interest.  After receipt of the complaint the Bank rectified the mistake by reducing Rs.90,442.70. Since the Bank did not reduce the entire amount of Rs.1,23,263.51 as claimed by the complainant, the complainant made consumer complaint to the Forum below claiming Rs.32,820.81 and the fine amount of Rs.960.39 & 786.75 and also Rs.1.00 Lacs for physical & mental harassment and Rs.5,500/- towards cost of the proceedings.

2.      The O.P. Bank resisted the complaint by submitting Written Submission and other documents like the Loan Agreement and submitted for dismissal of the complaint.

3.      After hearing of both the parties and perusal of the case papers, the Forum below allowed the complaint partly as stated above.

4.      Being dissatisfied with the order the complainant preferred the present appeal.

5.      The complainant Mr S J Kharbade personally remained present and argued that the Forum below granted the relief partly, but the Forum below has not granted the balance claim of Rs.32,820.81 and Rs. 960.39 and also given less compensation and less cost of proceedings. He further argued that the Bank has given home loan of Rs.5.50 Lacs @ 8% p.a., however, the Bank charged increased interest, which is against the guidelines issued by the Reserve Bank of India in granting Home Loans. He finally prayed to grant the balance interest charged of Rs.32,820.81, and entire amount of compensation and cost of proceedings claimed in the complaint.

6.      Adv. Mr Ajay Ambekar appeared for the respondent Bank and argued that the complainant took home loan by availing variable rate of interest, which means whenever the Bank changes rate of interest the rate of interest for the sanctioned Home Loan also changes. Accordingly, the Bank charged interest which is more than 8% of the original rate of interest. Since, there was an error in calculating the interest of the Home Loan of the complainant, the same was rectified after receipt of letter from the complainant Hence, an amount of Rs.90,442.70 was reduced from the Home Loan Account of complainant. However, the complainant is not satisfied and demanding Rs.32,820.81 also to be reduced, which is not possible because this is due to increase in the rate of interest. The Forum below also rightly observed in its order. However, as per the direction of the Forum, the O.P. Bank paid Rs.26,786.75 to the complainant in compliance with the order. He finally prayed for dismissal of the ap