National Consumer Disputes Redressal
Central Bank Of India vs Smt. Pushpa Lata on 4 July, 2011
NATIONAL CONSUMER DISPUTES REDRESSAL COMMISSION
NATIONAL
CONSUMER DISPUTES REDRESSAL COMMISSION
NEW DELHI
REVISION
PETITION NO. 343 OF 2007
(From the order dated 18-10-2006 in Appeal No.A-1111/1998
of the State Commission, Delhi)
Central Bank of India
4, Bahadur Shah Zafar Marg,
Link House-2,
New Delhi, through its Manager,
Shri Mahesh Prasad Nayak,
Central Bank of India,
Shahdra, Delhi-110032.
Petitioner
Versus
Smt. Pushpa Lata
R/o 1/10734, Subhas Park,
Naveen Shahdara,
Delhi-110032. Respondent
BEFORE:
HONBLE MR.JUSTICE V.B. GUPTA, PRESIDING MEMBER
HONBLE MR.SURESH CHANDRA, MEMBER
For the
Petitioner : Mr. Yogesh Pachaur, advocate
For the
respondent : In person
Dated : 4th July, 2011
ORDER
PER JUSTICE V.B. GUPTA, PRESIDING MEMBER By way of present revision petition, there is challenge to order dated 18th October, 2006 passed State Consumer Disputes Redressal Commission, Delhi (For Short State Commission).
2. Case of Respondent/complainant is that petitioner-bank through their scheme having given advertisement in various newspaper from time to time, invited people at large to make deposit with their banker i.e. National Housing Bank, a scheme launched by them to grant loan for buying residential premises in Delhi.
They further assured that depositors/members would be entitled to avail loan in various categories for their housing project. House loan account scheme is however, open to any one not owning a house and is not restricted to those seeking the assistance of public agencies. In other words, members can seek dwelling accommodation through any source or by private negotiations and avail of the loan facility under this scheme. Thus, Respondent believing their advertisement and in view of the model scheme, started depositing Rs.1,000/- per month in the home loan account w.e.f. 01-09-1989 vide her home loan account No. D.2, which matured on 1-09-1994.
Though Respondent had deposited a total sum of Rs.83,000/- upto 31-07-1996, she wrote many letters to the petitioner to grant her loan for purchasing a house in Delhi, but petitioner did not grant any loan under one pretext or the other. As such, respondent has been deprived of her legal rights. It is further alleged that petitioner has laid down in the scheme that on completion of 5 years, a depositor can avail of home loan for acquiring a New house/flat from any source the account holder likes and the account holder is not tied to any specific agency.
3. Respondent wrote various letters dated 29-07-1993, 19-10-1994, 13-05-1996 and 10-11-1994 and also served legal notice dated 31-01-1996, requesting the petitioner to grant her a loan of Rs.3,00,000/-, so that she may buy a house in Delhi and also enclosed advertisement of some builders like DLF and Ansals, but petitioner did not grant any such loan as was envisaged but sent a letter dated 20-02-1996 having acknowledged the receipt of letter of her counsel.
4. It is further alleged that prices of plot/flat have increased manifolds and respondent has been deprived of her lawful right on account of negligence and false assurance on the part of the petitioner. The House/plot which respondent could have got for sum of Rs.3,00,000/- is not available in the market for Rs. 8 or 9 lacs. Hence, petitioner is liable to pay the difference and also to compensate her in this regard and the petitioner be directed to grant a loan of Rs.3,00,000/- and pay the difference, as the price of house/plot have increased manifolds.
5. In reply, it is stated by the petitioner that present complaint is not maintainable in as much as the scheme formulated by National Housing Bank was to acquire a new house/flat but the property which was alleged to be purchased by the respondent does not fall within the scope and ambit of the terms and conditions of the National Housing Bank. Moreover, clause 3 & 4 of the Home Loan Account scheme are very clear and respondent did not complete pre-requisites. It is further alleged that respondent was informed, vide letter dated 30-08-1996, that if she is able to complete the pre-requisites, the bank has no objection to sanction the facility to her. Since, there was no deficiency in service on the part of the petitioner, as such the claim of respondent is untenable in the eyes of law and is liable to be rejected.
6. District Forum, vide order dated 2nd December, 1998 dismissed the complaint on the ground that complainant/respondent has failed to make out a case of deficiency of service against the petitioner. However, it observed that respondent can get housing loan even now or she can withdraw the deposited amount with 10% interest p.a. allowed under the scheme and let the respondent make up mind in the matter.
7. Aggrieved by the order of District Forum, respondent filed appeal before State Commission, which vide impugned order partly allowed the same observing:--
In our view the District Forum erred in absolving respondent from the charge of deficiency in service. No consumer can be denied his right of claim under any scheme floated by the service provider. In the instant scheme it was specifically provided that even after five years of required deposit of Rs.1,000/- per month the consumer would be entitled for loan of Rs. 3 lacs. Application for raising loan was merely an official formality and therefore should not have been used as an excuse of depriving the appellant from the fruit of the scheme.
In the given facts and circumstances of the case, we partly allow the appeal by directing the respondent to pay interest @ 10% on the deposited amount w.e.f. 01-09-1994 till the date of this order and also pay Rs.10,000/- as cost of litigation.
8. It is contended by learned counsel for the petitioner that scheme for grant of loan for buying residential premises in Delhi was open to those who did not own any house and a member of the said scheme could seek dwelling accommodation through any source or private negotiations and avail the loan facility under the scheme on completion of five years. Clauses 3 & 4 of the said scheme are relevant, which read as under:--
3. Only for construction of house/flat on the plot owned by the member borrower or for purchase of new house/flat from any public and private agency /co-operative society.
New dwelling means first registration should be in the name of House Loan Account member/borrower. House Loan amount should not be given for purchase of old house/flat or for purchase of vacant plot from the private parties.
4. Besides compliance with the provisions of HLAS, HLA loan is subject to the compliance by the member/borrower with all the usual terms and conditions of sanction of direct housing loan to individual viz. security, repaying capacity, insurance cover for the property, repayment schedule, etc. as formulated by the respective head office of the lending institution except in regard to margin and size of loan besides the rates of interest which will be as laid down in the scheme.
9. It is further contended that as respondent was member of the scheme w.e.f. 1st September, 1989, she vide her letter dated 7th February, 1995 informed the petitioner bank that she intends to purchase already built flat tentatively priced at Rs. 3 lacs from a private builder and stated that she will apply for loan on prescribed form as soon as the builder confirms and execute an agreement for sale. Subsequently, respondent vide her letter dated 31st May, 1996 informed the petitioner that she wanted to purchase a house from a private party.
10. In response to the said letter, petitioner informed the respondent that loan couldnt be sanctioned for purchase of house/flat or for purchase of vacant plot. Respondent was further informed that borrowers will be eligible for a loan under the scheme to acquire a New House/flat and she may acquire such a house from any source including private parties and she was requested to inform her further plans. Since, respondent never fulfilled the requirement for release of the loan amount in her favour, as such she was not entitled to the loan and thus there is no deficiency in service on the part of the petitioner.
11. On the other hand, it is contended by respondent who has herself appeared in person and argued her case, that as per home loan account scheme, she was entitled to the house, as she remained a member of the scheme for five years and was eligible to the loan under the said scheme.
12. Short question which arises for consideration is as to whether there is any deficiency of service on the part of petitioner for not granting the loan in the absence of formal application filed by the respondent.
13. Salient features of Home Loan Account Scheme have been placed on the file of District Forum as annexure A at page 66 of the paper book. Relevant features are reproduced as under;
A scheme at a glance
--
1. The basic feature of the scheme is that if an member saves regularly for a minimum period of five years (three years in the case of allottees of house/flat in NHB financed projects) she/he will be eligible for loan as a multiple of accumulated savings. A minor can get loan on attaining majority. A member must continue to save so long as she/he does not own a house and needs a loan for the purpose.
2. A unique facility under the scheme is that an account holder, irrespective of the place of opening the account is eligible for a loan for acquisition of a house/flat anywhere in India.
3. Deposits will earn interest at 10% p.a. Housing loans upto Rs.50,000/- will carry interest at 10.5% i.e. only half percentage point higher than the deposit rate.
4. On completion of five years, you can avail of Home loan account loan for acquiring a new house/flat from any source you like. You are not tied to any specific agency.
14. Ex.R-1 (Page 81 of the paper book) is Home Loan Account Scheme Check list for sanction of housing loans, Clause 5 of it states:-
What procedure to be followed for appraising loan applications?
The procedure laid down by the respective Head Offices to be followed in examining legal/technical/financial aspects of the housing unit to be financed. Satisfactory documentary evidence, such as, original titles to the property and connected documents along with legal opinion original plans as sanctioned by the Municipal/local authorities, estimates of the house/flat prepared by Architect/Engineer as required under local laws to be verified. In short, all the safeguards prescribed for grant of loans by respective lending institutions should be observed in the case of HLA loans also.
15. Clause 13 reads as under:-
If an HLA holder does not wish to seek loan but requests for withdrawal of entire balance for any purpose?
Even if a member does not want to avail of loan or had discontinued contribution into HLA, the accumulated balance together with up-to-date interest @ 10% p.a. may be permitted to be withdrawn only on completion of five years from the date of opening HLA. The benefit of Income tax already approved of on the accumulations in HLA so permitted to be withdrawn can be retained by the assessee. Incidentally, HLA need not be closed/discontinued on completion of five years from the date of opening. Account holders have the option to continue to save as long as they wish to so as to avail of tax benefits and/or to obtain loan.
Under no circumstances, balance in HLA should be refunded before completion of five years, except in the event of death of the depositor.
16. As per Ex.R-2 (letter dated 30.8.1996), written by petitioner to the respondent, it was pointed out that a person after serving for a minimum period of five years under the scheme or any time thereafter, will be eligible for a loan under the scheme to acquire a New House/flat. If she fulfils the above criteria she should visit their office and let them know her further plans in the matter.
17. It appears that after receipt of letter Ex-R2, respondent never contacted the petitioner nor she submitted any details with regard to the specific property to be purchased by her. Under these circumstances, it cannot be said that there is any deficiency on the part of petitioner in not granting loan to the respondent. Thus, impugned order cannot be sustained and is hereby set aside.
18. Accordingly, order of the District Forum is restored. Respondent can get housing loan even now or she can withdraw the deposited amount with 10% interest per annum allowed up-to-date under the scheme.
19. With these observations present revision petition stands disposed of.
20. Parties shall bear their own costs.
..
(V.B. GUPTA, J.) PRESIDING MEMBER ...
(SURESH CHANDRA) MEMBER aj/ The short question which arises for consideration is as to whether there is any deficiency of service on the part of the petitioner for not granting the loan in the absence of formal application filed by the respondent.
The silent features of the home loan of the scheme have been placed on the file of District Forum.
Relevant features of the scheme are reproduced as under;
A scheme at a glance --
4. The basic feature of the scheme is that if an member saves regularly for a minimum period of five years (three years in the case of allottees of house/flat in NHB financed projects) she/he will be eligible for loan as a multiple of accumulated savings. A minor can get loan on attaining majority. A member must continue to save so long as she/he does not own a house and needs a loan for the purpose.
5. A unique facility under the scheme is that an account holder. Irrespective of the place of opening the account is eligible for a loan for acquisition of a house/flat anywhere in India.
6. Deposits will earn interest at 10% p.a. Housing loans upto Rs.50,000/-
will carry interest at 10.5% i.e. only half percentage point higher than the deposit rate.
On completion of five years, you can avail of home loan account loan for acquiring a new house/flat from any source you like.
You are not tied to any specific agency.
Further, Ex.R-1 is a Home Loan Account Scheme Check list for sanction of housing loans.
Clause
5. What procedure to be followed for appraising loan applications?
The procedure laid down by the respective Head Offices to be followed in examining legal/technical/financial aspects of the housing unit to be financed. Satisfactory documentary evidence, such as, original titles to the property and connected documents along with legal opinion original plans as sanctioned by the Municipal/local authorities, estimates of the house/flat prepared by Architect/Engineer as required under local laws to be verified. In short, all the safeguards prescribed for grant of loans by respective lending institutions should be observed in the case of HLA loans also.
Further, in clause 13. -- If a HLA holder does not wish to seek loan but requests for withdrawal of entire balance for any purpose ?
Even if a member does not want to avail of loan or had discontinued contribution into HLA, the accumulated balance together with up-to-date interest @ 10% p.a. may be permitted to be withdrawn only on completion of five years from the date of opening HLA. The benefit of Income tax already approved of on the accumulations in HLA so permitted to be withdrawn can be retained by the assessee. Incidentally, HLA need not be closed/discontinued on completion of five years from the date of opening Account holders have the option to continue to save as long as they wish to so as to avail of tax benefits and/or to obtain loan.
Under no circumstances, balance in HLA should be refunded before completion of five years, except in the event of death of the depositor.
As per Ex.R-2 which is a letter dated 30.8.1996, written by the petitioner to the respondent, it was pointed out by the petitioner that a person after serving for a minimum period of five years under the scheme or any time thereafter, will be eligible for a loan under the scheme to acquire a New House/flat.