NARESH MALHOTRA Vs. ICICI BANK LTD

JUDGEMENT

(1.) THE aforementioned two appeals arise out of one and the same order dated 3.9.2009 passed by the District Consumer Forum -I, U.T.Chandigarh whereby complaint bearing No.503/2009 filed by Naresh Malhotra (hereinafter to be referred as complainant) was allowed against ICICI Bank Limited etc. (hereinafter to be referred as OPs) in the following terms:

(2.) IN fact appeal No. 582/2009 has been filed by ICICI Bank Limited for setting aside the impugned order whereas appeal No. 576/2009 has been filed by the complainant for enhancement of compensation. Since, in both these appeals, common questions of law and facts are involved, so, we are deciding these appeals by this common judgment.

(3.) IN nutshell, the facts culminating to the commencement of these two appeals may be recapitulated thus: The complainant on the inducements and representations made by representatives of OPs applied for a home loan of Rs. 1,15,00,000 at 9% perannum adjustabl einterestrate/floatingrate. The loan was sanctioned on 31.5.2005 and disbursed on 8.6.2005 and was to be repaid in 180EMIs of Rs. 1,16,641 comprising of principal and interest. The complainant received letter dated 24.6.2005 according to which pre EMI for June, 2005 was Rs. 54,494. The EMI chart supplied by the OPs showed that from January to July, 2005 they would charge interest @ 9% per annumbut immediately after disbursement of loan they increased the same to 9.5% per annum. In the month of August,2005 the EMI was Rs. 1,16,641 but OPs charged Rs. 4792 extra. Then EMI remained constant from 1.8.2005 till 1.9.2006. However, from the statement of account complainant found that OPs charged interest @ 10% per annum after April 2006, 11% per annum after July 2006, 11.5% per annum after January 2007 and 13.5% per annum after April 2007. The complainant in order to ease the pressure of increased rate of interest, paid Rs. 40.00 lacs to OPs, after availing loan from GE money in September 2006 but after receipt of the same, the OPs in October 2006 at their own increased the EMI from Rs.1,16,541 to Rs. 1,38,350 and reduced the EMIs from 180 to 93. The complainant made several representations to OPs for clarifying the position upon which he received letters dated 4.1.2008 and 26.5.2008 from the OPs offering 10.5% per annum rate of interest with nil switch fee which was accepted by him but he was charged @ 11.25% and was informed vide letter dated 29.8.2008 that from 1.10.2008 the rate of interest would be 12%. The complainant ultimately decided to prepay the entire loan but the OPs demanded exorbitant pre -payment charges @ 2%. Hence, alleging deficiency in service and unfair trade practice on the part of OPs, complainant filed complaint before the District Forum.