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APPEAL No.323/2021
Date of Filing : 24.03.2021
Date of Disposal : 21.04.2021
BEFORE THE KARNATAKA STATE CONSUMER DISPUTES
REDRESSAL COMMISSION, BENGALURU (PRINCIPAL BENCH)
DATED: 21st APRIL 2021
PRESENT
HON’BLE Mr. JUSTICE HULUVADI G. RAMESH : PRESIDENT
Mr KRISHNAMURTHY B. SANGANNANAVAR: JUDICIAL MEMBER
Mrs DIVYASHREE M: LADY MEMBER
APPEAL NO.323/2021
1. The Manager
Capital First Ltd.,
IDFC First Bank (After Merg)
KCA Enclave
1st Floor, No.582, 80 Feet Road
Police Station Road
Opp. to Bethany High School
Koramangala
Bengaluru-560 095
2. The Manager
Capital First Ltd.,
IDFC First Bank (After Merg)
Regd. Office
One India Bulls Centre
Tower 2A and 2B, 10th Floor
Senapathi Bapat Marg
Lower Parel
Mumbai – 400 013
Rep. by Sri.Suresh
Legal Executive and
Authorised Representative
Appellants
(By Mr.Suresh V)
-Versus-
Sri.N.Gopi
No.57, 4th Cross
3rd Stage, Rajeshwari Nagar
Laggere, Bangalore North
Peenya Small Industries
Bengaluru
Respondent
APPEAL No.323/2021
-:ORDER:-
Mr KRISHNAMURTHY B. SANGANNANAVAR: JUDICIAL MEMBER
1. This is an Appeal filed under Section 41 of CP Act, 2019
aggrieved by order dated 18.12.2020 passed in Consumer
Complaint No.1518/2019 by I Additional District Consumer
Disputes Redressal Commission, Bengaluru (for short District
Commission).
2. The facts in brief are: The complainant has obtained loan of
Rs.10,00,000/- from OP by executing the mortgage by deposit of
title deeds. The representative of OPs by name Ahmad Irshad and
Ramesh informed the complainant that they will get the loan at
the rate of 16% per annum. Accordingly, he accepted the same
and proceeds with the loan application on 23.01.2018. The loan
was sanctioned on 17.02.2018 fixing repayment period as 84
months and cheque was handed over to his wife. The Bank has
collected Rs.23,600/- towards processing charge, Rs.6,785/-
towards life insurance charge, Rs.8,154/- towards general
insurance and did not explain regarding the rate of interest and
the deduction of amount from the loan amount sanctioned and
also requested to issue cheque for security purpose and a sum of
Rs.40,000/- has been withdrawn from his account by Ahmad
Irshad on 20.03.2018. In the sanctioned letter, OP imposed
several conditions and hefty fee while making part or full
prepayment, such as 4% less applicable tax and 3% in respect of
part prepayment if EMIs 0 to 12 and from 13 months onwards 4%
on the balance and 3% applicable tax on full and final payment
namely towards foreclosure. OP has paid only Rs.9,43,667/- as
against sanctioned loan of Rs.10,00,000/-, EMI to be paid at
Rs.25,955/-. He was roaming from Vijayanagar Branch to
APPEAL No.323/2021
Koramangala Branch many a times and after four months, on
12.07.2018, he was given statement and on looking to it there
were many surprises and he was kept in dark, without explaining
to him, they have mentioned the internet rate at 26%, whereas he
was informed by said Ahmad Irshad and Ramesh that the rate of
interest would be 16% per annum.
3. He raised Consumer Complaint under Section 12 of CP Act,
1986 alleging deficiency in service wherein loan interest 26% per
annum as against agreed rate of interest to direct OP to reduce the
rate of interest from 16% to 10% and refund the extra interest
amount recovered with 18% on it and for grant of compensation of
Rs.5,00,000/- for causing harassment in collecting heavy interest,
and non-providing the documents.
4.
This was enquired into by the Commission below and the
Commission below held no deficiency in service thereby recorded
negative finding. Even then opined directing OP to levy interest at
16% per annum since 26% interest levied is highly exorbitant
which is now impugned in this Appeal.
5. We heard the learned counsel for the Appellant/O
