Deduction Of Instalments After Loan Settlement, Shimla District Commission Holds ICICI Bank Liable

Brief Facts:

The Complainant availed a personal loan of Rs. 1,80,000/- from ICICI Bank with an interest rate of 16.50% and an additional interest of 24.00%. The loan was to be repaid in monthly instalments of Rs. 5,125/-. The Complainant found the interest rate excessively high and took a loan from another bank to clear this amount. He consistently paid his monthly instalments. On November 5, 2020, the bank issued a letter stating that the total prepayment amount was Rs. 1,47,462.23/- and if paid, no further instalments would be required.

The Complainant paid Rs. 1,47,463/- through a cheque. Despite clearing the loan, the bank did not provide a No Objection Certificate (NOC) which caused the Complainant to visit them multiple times without any resolution. On January 5, 2021, Rs. 3,454/- and Rs. 5,125/- were illegally deducted from the Complainant's current account as loan instalments. Feeling aggrieved, the Complainant filed a consumer complaint in the District Consumer Disputes Redressal Commission, Shimla, Himachal Pradesh (“District Commission”) against the bank.

In response, the bank stated that it sent a bank draft of Rs. 8,820/- to the Complainant which included a refund of one EMI with 9% interest. It argued that the Complainant visited the branch to pre-close the loan, but an EMI bounced that day. On November 19, 2020, the branch contacted the Complainant to pay Rs. 5,125/- plus Rs. 472/- as bounce charges, but he refused. It raised further service requests and claimed to have sent the NOC by email and courier. It argued that the issue was a technical problem and not a deficiency in service. It offered a refund, which the Complainant did not accept.

Observations by the District Commission:

The District Commission noted that the bank claimed that it emailed the No Dues Certificate (NDC) to the Complainant but failed to provide evidence. The Complainant maintained that he didn't receive the NDC. The District Commission noted that the Complainant filed the complaint on February 23, 2021, and the refund by the bank occurred on May 10, 2021, which indicated that the matter was not resolved promptly. The District Commission noted that the bank could have settled the issue when the Complainant made the payment of Rs. 1,47,463/-, but its failure to do so led to the complaint being filed. Therefore, the District Commission held the bank liable for deficiency in service and unfair trade practices.

The District Commission held that the bank failed to settle the Complainant's loan account promptly and did not issue the NDC. Therefore, the District Commission directed the bank to issue the NDC to the Complainant and close the loan account. Additionally, the District Commission ordered the bank to pay Rs. 3,000/- to the Complainant as compensation for mental harassment and agony and Rs. 2,000/- as costs of litigation.

Case Title: Bhadur Singh Pundir vs ICICI Bank Tower and Anr.

Case Number: 40/2021

Date of Pronouncement: 22.06.2024