IDBI BANK Vs. PARDEEP TAYAL

JUDGEMENT

(1.) THIS is an appeal filed by the OP against order dated 3.9.2008 passed by District Consumer Disputes Redressal Forum -I, UT, Chandigarh (for short hereinafter to be referred as 'District Forum') passing in complaint case No. 73 of 2008.

(2.) BRIEF facts of the case are that the complainants took housing loan of Rs. 13,00,000 from the appellant Bank which was to be paid in 96 EMIs of Rs. 17,724 per month @ 7% p.a (floating). The complainants submitted that as per letter dated 1.12.2004, the rate of interest would be reviewed at the end of three years from the date of final disbursement under the facility but the OP No. 2 intimated the complainant vide their letters dated 22.7.2005, 1.2.2006,1.7.2006 and 20.1.2004 that the rate of interest has been revised to 7.5%, 8%, 9% and 9.5% respectively. This act of OPs in reviewing and enhancing the rate of interest of home loan before the expiry of three years from the final date of disbursement i.e. 8.12.2004 was totally unwarranted and amounts to deficiency in service. The complainants made representations dated 22.2.2006 and 28.3.2006 to the OPs and also made complaint to the Bank Ombudsman where the OPs agreed that they would not charge higher rate of interest than 7% till 31.3.2007 but inspite of the above said undertaking before Ombudsman, the complainants kept on charging higher rate of interest than 7%. The complainants sent legal notice dated 6.7.2007and many written requests to the OPs but the OPs failed to redress the grievance of the complainants. The illegal action of the OPs in reviewing the rate of interest before the expiry of three years, as agreed, amounts to unfair trade practice and deficiency in service on the part of OPs and hence, the complaint was filed.

(3.) REPLY was filed by the OPs and pleaded that the complainants unconditionally accepted the terms and conditions stipulated by the IDBI Bank and entered into a Home Loan Agreement on 1.12.2004. As per the Home Loan Agreement, the complainants had opted for a floating rate of interest 7% p.a. The said rate of interest was subject to resetting of interest rate on the 10th day of April every year. It was pleaded by OPs that in terms of Home Loan Agreement, IDBI had reserved the right to amend any of the terms and conditions of the contract at its sole discretion and said clause reads as under: